TVD eyes home shopping

MAI-listed TV Direct Plc (TVD), a leading home shopping operator, remains confident its full-year revenue will rise 12.5% to 2.88 billion baht as more Thais embrace home shopping.

“We are riding this growing trend of home shopping as it’s more convenient for Thai shoppers,” said chief executive Songpol Shanmatkit.

TVD provides home shopping service through TV and online channels. It also has 81 showrooms nationwide to selling directly to customers who wish to see a product before making a purchase.

He said the home shopping business saw a slight effect from the economic downturn and weak consumer confidence but it is now picking up considerably in the fourth quarter.

TVD reported nine-month revenue of 2.1 billion baht and a net loss of 50.88 million baht. For the third quarter alone, it saw a net loss of 62.4 million baht on revenue totalling 731 million.

The company said the loss was because it shut down eight showrooms as it still has high operation costs. About 60% of its customers live in the provinces.

“The number of shoppers going to major department stores is dropping as more community malls and home shopping companies proliferate,” said Mr Songpol.

TVD is going to push forward its multiscreen sales plan for three channels: direct shopping via digital and cable TV as well as brochures; online via its website, social media and mobile app; and through its showrooms.

He said the Thai TV home shopping market has other major operators including Shopping Network by True-Visions, 1577 Home Shopping and O Shopping by SET-listed GMM Grammy.

Thais watch more channels in the digital TV era compared with the analogue era before 2014, so more channels have an opportunity to introduce their TV shopping channels to new audiences, said Mr Songpol.

The newest operator is Amarin Television Co, which has joined hands with Tokyo Broadcasting System Holdings to co-produce an informative and cultural programme called I-I-Yo-Ne! Wan Yud Sud Jeng to be aired on its Amarin TV digital channel this January. The show will include TV home shopping service as well.

TVD shares closed yesterday unchanged on the Market for Alternative Investment at 1.33 baht in light trade worth 997,000 baht.