Informing media about the change of Star CJ to Shop CJ, Director & CEO of Shop CJ Network Private Limited spoke to Sunil Pol about the new development, investment, consumer servicing and future targets of the company during a one-on-one interaction.
Q Why Star CJ has changed to Shop CJ?
It's because the Star group has parted with us citing the reason that home shopping is not their core business. Now Providence Equity Fund has replaced Star and has changed the brand identity and logo to make it to Shop CJ with the tagline 'shop a new trend'. Provident Equity Fund has 50 per cent share in CJ group and will remain our funding partner for longer. This makeover has marked the entry of Shop CJ into mobile commerce with the launch of its mobile app, thereby becoming an Omni-Channel platform.
Q What is the reach of Shop CJ? And what's the target ahead?
Through dish TV platforms like Airtel, DTH, CATV, TataSky and cable providers like Hatway, Incable and Fastway Shop CJ is viewed in around 65 million households across the country. This wider reach has attributed us around 6.5 million consumers till date which we are targeting to make it to 8 million by the end of this fiscal.
Q What is an amount of investment you are planning with Shop CJ in India?
In the upcoming years, we are planning to invest around Rs 250 crore in India for the development of our home shopping channel Shop CJ and Shopcj.com. The amount will be invested in developing backend infrastructure, logistics, advertising, marketing and customer care services. Soon we will start our TVC from first week May along with some outdoor and ground activities for marketing advertisement of Shop CJ. For these activities, we are shelling out Rs 15 crore to Rs 20 crores.
Q Are you going to induct more products onto your channel?
Yes, we are going to introduce more travel packages in our offerings. There are many travel companies like Make My Trip and Yatra.com which have different packages and they would like to introduce these packages on our channel. Also, we are planning to increase our product categories into the education side and financial side. Apart from this, we are also trying to figure out some of the products for infants as well. Generally we source 25% of our products from international market and 75% from domestic market.
Q What is your view of consumer servicing in the Indian market?
We are willing to offer best high quality products in reasonable price to the Indian consumers. We would like to be a trust worthy home shopping company sharing long-term relationship with Indian consumers. Thus, to look after customer queries, we have set up two call centres respectively, in New Mumbai and Gurgaon, which attends around 30,000 calls in a day.
Continuously we are focusing on quickly processing the orders, cash on delivery and card payment options. In case consumer doesn't like our products, they can return them in three days. We have been always trying to make it best through our processes of order taking to delivering to customer care.
Q How do you find the competition posed by existent shopping channels like HomeShop18?
CJ group has large number of shopping channels so we are striding into the Indian market with experience. We are not considering the other shopping channels as our rivals but we are looking at them as navigators to enlarge our home shopping market.
Q What is your market share in India?
Currently, our market share is 25 per cent which will go up by additional 5 per cent by the end fiscal 2015-16. By 2018 we are planning to become number one home shopping channel in India.
According to Technopak, CJ is the number one home shopping network in Asia and 2nd in the world.
Q What is the percentage of Indian cities and towns contributing to your sale?
Our 40% sale comes from Mumbai and Delhi, another 40% comes from tier I and II cities and the rest 20% comes from rural parts.
Q Around 80 per cent of the Indian consumers belong to middle class so how are you matching their expectations of price points?
Here, the most important part is the sourcing. We are trying to source at very reasonable rates from Indian as well as international producers to offer reasonable prices to the final consumers.
Q What is your target consumer group?
Our target consumer group is young men and women between 15 to 55 years of age.
Q According to you, how big is the Indian home shopping market and how is it growing?
Indian home shopping market is of $5.5 billion, which is growing by 40% to 50% annually.
Q What is your CAGR? And what's the target by 2018?
Since started in September we are growing by around 40% YOY and planning to make it double by 2018.