With a unique Television-Cum-Online approach of TV18 Shopping Network Ltd, the Network18’s firm appears to be doing well. As per the latest statistics released by the company, it is clocking more than 17,000 orders per day (roughly 1 per 5 seconds). What’s reassuring for the online business model is the fact that about 1/3rd of the orders are originating from its website.
However, the assurance ends at traction. The e-commerce arm of the dual mode of shopping has yet to turn profitable. In fact, net loss of the company was Rs 107.2 Crores (US$ 19.8 Million), as compared to Rs 50.9 Crores (US$ 9.40 Million) last financial year. While this maybe a common occurrence for e-commerce ventures, Sundeep Malhotra, CEO of Homeshop18 is confident of turning its account books profitable before this year is over, “By 2014, we will be profitable as an organization.” Additionally, the company is already in the negotiation phase to raise US$ 50 million in funding, before it finally launches its Initial Public Offering (IPO) in the next two years or so.
While many e-commerce ventures rely only on their web-portal & back-end logistics to win customers, HomeShop18 network has deployed a very interesting business model. The company has a dedicated televised channel to promoting the products retailed by the company. Buyers who are interested in purchasing have the option of calling the network & placing the order by paying through credit-card. But, since the venture even has an e-commerce arm, shoppers can choose to head there too.
Smartphones & Tablets have already proven to have a common presence even during leisure activities like watching television. People are known to constantly fiddle with these devices. Hence, HomeShop18 could do well to come up a dedicated app that offers the convenience of shopping right from these portable devices. Each product anyways has a unique ID. Online shoppers could simply input this ID & instantly hit the buy button. What do you think?
Story Source | Techcircle
Image Courtesy | talkabouttech