STAR launches its shopping network channel; spends Rs 30 crore on studio

STAR CJ Alive has finally been launched after a long delay. Positioned as a premium home shopping channel, STAR CJ Alive is part of STAR CJ Network, which is a joint venture between STAR Group and South Korea’s CJ O Shopping.To test the market, the network has been airing six-hour slots of home shopping on STAR Utsav everyday, since September last year. After gauging the response, the network has decided to launch the 24-hour shopping channel on August 1.
Paritosh Joshi, CEO, STAR CJ Network, says, “Introducing the slot gave us an opportunity to study the market and its needs, along with consumer behaviour. There is huge potential in this market, given the increasing discretionary income of consumers in India.”
The reason for entering this business, says Uday Shankar, CEO, STAR India, is that shopping is close to STAR’s core constituency. “Over the last 15 years, what STAR Network is truly proud of is its relationship of trust and belief with Indian households. We want to take this trust to another level. STAR CJ will bring the same quality and credibility to the fore as that of the STAR Network,” he says.
STAR CJ Network carried out research to understand what consumers expect from a home shopping channel, and found that consumers did not perceive any of the current offerings as serious shopping destinations. Hence, the network has brought in credible brands, and has also set up a robust supply chain and customer care services.
The premium brands which would be available on STAR CJ include Tanishq, Reebok, Philips, Canon, Benetton, Satya Paul, Adidas, LG and Morphy Richards, across categories such as fashion, skin care, home appliances, telecom and jewellery.Typically, for a home shopping channel, the biggest cost incurred is for the studio facility, which can be to the tune of Rs 25-30 crores. STAR CJ has invested in a studio equipped with editing and graphics capabilities. Distribution is another key area that a channel of this nature has to focus on.
The sole revenue source for a home shopping channel is the sales margin, since advertising is not an ideal source of revenue in this business.The channel will be available in Maharashtra, Haryana, Punjab and Delhi NCR. STAR CJ plans to expand this in other regional languages, although not in the immediate future.A promo announcing the launch of the channel will be aired across the STAR Network channels and other movie, general entertainment and news channels. This will be supported by a brand campaign across print, outdoor, radio and digital. Here’s wishing the STAR group success in its latest venture.