Key statistics of Homeshop18 business:
- 51% of the business comes from TV channel ; Internet consstitutes only15%
- 35% of buyers are from the metros; 65% Tier II and Tier III cities
- 60% of buyers are males ; 40% females
- 350 brands; 20,000 SKUs (Stock keeping units)
The company raised $21mn from SAF Partners and Network18, in July of 2008 and now reaches out to over 2,000 cities in India.
Here is presenting an interview with Sundeep Malhotra, CEO, HomeShop18 on company’s background, top selling category and future plans.
Share some background of Homeshop18.
1.5 years ago, definition of virtual ebay was either ecommerce or teleshopping.
Ecommerce in India still does not have more than a few million userbase and most importantly, the user base hasn’t grown exponentially.
Teleshopping has been all about selling particular category of products (spirituality/health/wellness). Driven by short term mindset – sold ‘magic’ more than genuine products.
Both these industries left a lot to be desired.
Homeshop18, in it’s 2 years of existence has created a market of virtual retail (present in all channels, except retail) :
Print : 20/30 alliances
Future plans include radio as well as mobile.
What are the top selling products at Homeshop18?
These are the broad categories that are top selling:
Consumer Electronics : Camera [Homeshop18 claims that 5% of camera sold in India are thru’ HS18 channel], Mobile Phone and Microwave Ovens.
Home & Kitchen products
Please share some key statistics regarding Homeshop18’s userbase
18% are repeat customers.
New transaction every 13 seconds.
Run-rate of Rs. 1 crore a day.
What’s your take on Homeshop18’s business model? It’s quite a unique model given that it stands between the retail and virtual world. What’s interesting is that the company is interested in present in all consumer channel, except retail and is the first one to break into full time TV programming.