What to expect from ABS-CBN's new TV shopping program

By Karen Flores, ABS-CBNnews.com

Posted at Oct 29 2013 05:42 PM | Updated as of Oct 30 2013 11:21 PM

ABS-CBN chairman Eugenio Lopez III (left) and CJ O Shopping CEO Harri Lee at the press launch of O Shopping. Photo: Handout

MANILA – Multimedia conglomerate ABS-CBN launched on Tuesday its second attempt at the TV shopping business with the help of the South Korean firm CJ O Shopping Corp.

The result is a P200-million joint venture called A CJ O Shopping Corp., which lets ABS-CBN broadcast the South Korean firm’s O Shopping program 24/7 on Channel 11 of SkyCable and Global Destiny, as well as on certain times of the day on Channel 2 and Studio 23.

Dubbed as an “infotainment” program, O Shopping lets viewers choose from a wide range of goods, from kitchenware to exercise machines and beauty products.

Aside from the Philippines and South Korea, it airs in six other countries – China, India, Vietnam, Thailand, Japan and Turkey.

ABS-CBN chairman Eugenio Lopez III believes that unlike Sky Mall, their first venture into TV shopping, O Shopping has a greater chance of success in the Philippine market.

“TV home shopping is nothing new to our group as we opened Sky Mall in the 1990s. We closed it down a few years after and walked away with a valuable lesson – we need a strong and competent partner. ABS-CBN is in the business of reaching audiences, so we needed a partner in the business of selling great products,” Lopez said during the launch.

“Last year, we finally found the right partner, CJ O Shopping from Korea,” he added, noting how he has been working with the company for the past 18 months.

For his part, CJ O Shopping chief executive officer Harri Lee said: “O Shopping is a complex combination of retail, broadcasting, logistics and IT sytems. Nevertheless, I express with full confidence that A CJ (joint venture) will succeed.”

How it works

Since its test broadcast two weeks ago, O Shopping has been offering 10 Korea-made items – a stovetop oven, a “double” pan, a frying pan set, two sets of pots, an exercise machine, a drying rack, a “roller slide,” a hand blender, and a “rolling styler” for the hair.

This "double pan" called Happy Call (P2,995) is currently one of the hottest items on O Shopping in the Philippines. Photo from O Shopping website

A CJ O Shopping president and chief executive officer Eddie Bak said they have conducted focus group discussions and surveys to help them choose the products that are on offer and those that will soon be featured in the program.

“They’re getting information and data on the lifestyle of Filipino consumers, so you’ll be able to select more appropriate products going forward,” Bak said, adding that they are planning to launch apparel and fashion accessories in the future.

Viewers who are interested in a certain product may inquire or place an order by calling O Shopping’s hotline numbers. The items, which can be paid with cash or credit card, will then be delivered to their home within one to seven days.

The Home Power Laundry Rack (P1,495) is another item offered on O Shopping. Photo from O Shopping website

“In Metro Manila, we have our partners, like CJ Korea Express is an affiliate. And nationwide, we use 2GO,” said ABS-CBN business development head Paolo Pineda.

Asked if they are planning to offer local products in the future, Pineda said: “We’ll start with our partners, but we’re definitely open. We’ll address it at some point.”

Another option

Pineda said O Shopping is one of ABS-CBN’s ways of maximizing the strength of its broadcast arm, although he admitted that they have yet to get a firm grasp on the TV shopping business despite their Sky Mall venture years ago.

“We just felt that we have a strong proposition for our consumers,” he said, adding, “We tried to limit our investment because we are willing to take a chance. And I think the results of CJ O in other Asian countries were the ones that gave us the confidence to go into this.”

While he noted that TV shopping has a long way to go in the Philippines compared to going to malls and surfing the Internet for deals, Pineda said what is important is that they are giving consumers another option.

“We’re selling different products. We want to allow people to buy from other means. So [in the process], you increase everyone’s trust in the system of delivery. And in the end, it will be about the products that you offer,” he said.

“In Korea, there’s a CJ Mall, there’s about a million products there and it’s also available on mobile. It doesn’t stop us from doing anything on other platforms,” he added.

O Shopping airs on SkyCable and Destiny Cable Channel 11 (all day), on Studio 23 (1 to 2 a.m. and 5 to 6 a.m. on weekdays and 1 to 2 a.m. on weekends), and ABS-CBN Channel 2 (after “Banana Nite” on weekdays, after “Sports Unlimited” on Saturdays and after “Sunday’s Best” on Sundays).

ABS-CBNnews.com is the news website of ABS-CBN.