Although a relatively small sector of the home shopping market, compared with online, TV shopping is set to grow and will be worth almost £2bn by 2013
Why are we talking about TV shopping?
One of the main TV shopping players, Ideal Shopping Direct, reported a strong start to the year last week and is launching into the pets market, to complement its other niche offers such as gardening.
How big is the market?
According to Verdict Research, the TV shopping market will see a 57.7% uplift in sales by 2013, with a market value of £1.94bn. However, while TV shopping is growing, it is still a small sub-sector of what Verdict calls the remote retail market - including online shopping - which it forecasts will grow 45.8% to £36.6bn by 2013.
TV shopping has had two difficult years though, with growth slowing from 11.8% in 2007 to 3.4% in 2008, and 2.4% in 2009. As the recession hit consumers became more cautious, as while products claim to be bargains, many are indulgences.
Who are the major players?
The major TV shopping channel retailers are QVC, Ideal Shopping Direct, JML and BidUp TV. Then there are several smaller niche channels and some that only broadcast when one of the regular channels is off air.
Who shops on them?
Traditionally, core TV channel shoppers are housewives or the unemployed. However, the main players have worked hard to make their images more aspirational.
Why will TV shopping grow, now we’ve got online shopping?
At the moment, the majority of TV shopping channels are available on digital TV and some are on Freeview. But by 2012, analogue TV will be switched off, meaning TV shopping channels will have a presence in most homes in the country.
Verdict senior analyst Malcolm Pinkerton says: “With digital channels in all homes shopping channels will significantly increase customer base, but in order for the sector to achieve growth, it needs to operate its TV offer with a strong online offer.”
How do TV shopping channels and online work together?
Many of the TV shopping channels now have strong online offers and with the rise in sales of TVs that are internet enabled the two channels will work more hand in hand. QVC, for example, has already incorporated its core TV offer into its website, which streams a live TV feed.
Also, interactive TV is catching on and the introduction of product placements on TV will lift sales. Verdict predicts technology will soon enable shoppers to press the red button on their remote controls when they see a product on a traditional channel they like and then go through to a website to buy it.
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