Hunan TV-controlled Happigo Home Shopping Co. Ltd. aims to capitalize on growing smartphone use by expanding from TV shopping into internet and mobile e-commerce, according to senior management.
TV shopping still accounts for 70 percent of Happigo’s sales while online and mobile shopping make up just 12 percent, a share the company plans to grow to half by 2016.
“We expect revenue from internet and mobile shopping will jump five times from last year’s 500 million yuan (US$81.63 million),” Happigo deputy general manager Daniel Tang said Friday. Revenue was more than three times the 2012 figure.
“In mobile shopping alone, we had 60 million yuan in sales three months after launch last year. We expect it will reach 300 million yuan this year,” he said.
The company expects to launch a system in the next year or two to integrate TV shopping with its online and mobile business, he said.
It is also working on a social networking app — possibly similar to Alibaba Group’s Laiwang – to add value to its revenue sources.
“We hope to create a system for shoppers to engage in TV shopping over their mobile phones so they can order products the moment they see them. Consumers can also buy the clothes TV stars wear in TV programs,” Tang said.
Products sold by the company include food, jewelry, clothes, furniture, cosmetics, home appliances and digital products. Tang said some companies had approach him about launching financial or insurance products, but he is cautious about venturing into the area.
He added that the largest revenue contribution last year was 120 million yuan in sales of Lenovo Group Ltd. (00992.HK) mobile phones and computers.
One of Happigo’s competitors, Shanghai SMG-CJ Homeshopping Co. Ltd., a unit of China’s largest television shopping operator Shanghai Oriental TV Shopping, clocked up 7.63 billion yuan in revenue in 2012, compared with 150 million yuan in 2004. SMG-CJ expects income this year to reach 10 billion yuan, up from an estimated 8.5 billion yuan in 2013.
Happigo has filed for an A-share listing this year. The company did not offer many details of its finances, just saying that it plans to expand its sales to 10 billion yuan in three years, up from 4 billion yuan in revenue last year. It had 3.5 billion yuan in sales in 2012.
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