Home Shopping Companies try to “Grab the Living Rooms in China”

Korean home-shopping businesses are advancing to China actively.

CJ Home-shopping had a signing ceremony at the Shanghai Convention Center on the 28th with Shanghai Media Group, one of the largest media groups in China, to establish a joint corporation.

The joint corporation is tentatively called ‘Shanghai SMG-CJ Home-shopping’ with capital of 20 million dollars (approximately 24 billion won), CJ Home-shopping and SMG investing 49% and 51% respectively.

SMG owns 11 TV channels including cable and satellite broadcasting companies, and 10 radio channels.

The joint corporation will start its first Home-shopping broadcast around next March with Shanghai in the center. Then they will expand to Jiangsu, Jiajang, Shangdong, and Anhui.

Besides CJ Home-shopping, LG Home-shopping concluded a contract with Beijing TV (BTV) last July, and Hyundai Home-shopping took over shares of Guangdong and Guangzhou Hungya TV Home-shopping this January.

CJ Home-shopping vice president Kim Hong-chang said, “It is becoming more difficult for TV home-shopping businesses to expect growth in Korea since the number of families watching the channel is over 10 million now.” He also said that there is high chance of development in the future in China, since there in no home-shopping culture at present.

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