To launch special offers and promotions
Television shopping channel Star CJ alive, from Star CJ Network Pvt Ltd, is claiming average daily sales of products worth Rs 95 lakh on weekdays and Rs 1.2 crore on weekends, after a year of operations.
Speaking to Business Line, Mr Paritosh Joshi, CEO, Star CJ Network India, stated that the channel has successfully positioned itself as a source of reliable knowledge on products for consumers, in addition to its primary role of being a purchase channel.
Citing half-yearly tracking of consumers, he said, “The appetite for good things and transformation of lifestyle exists. But not all consumers looking to upgrade to the next level are empowered with the knowledge to do so. Explaining the features of a mobile phone in detail, or how a non-stick pan works, or the different uses of a microwave – sometimes with a Sanjeev Kapoor – has helped us establish Star CJ alive.”
Even in its first year, Mr Joshi notes that the channel witnessed a spike in consumer orders during the festive season. So this year, the channel is gearing up with special offers and promotions beginning early September (Id, Ganesh Chaturthi), going up to the New Year.
“Marketers we speak to are happy to put their brands on the channel, because according to them it helps not just sales on the channel, but pushes up sales in traditional channels as well,” added Mr Joshi.
Repeat Purchase Portfolio
Of products sold on Star CJ alive, 65 per cent are electronics (cameras, mobile phones, microwaves, laptops and such), and household products (laundry hangers, mops) account for the second largest chunk. Also sold are products such as olive oil, spa products and foods (such as green tea, herbal tea) – a category it will look to grow. It has been selling L'Oreal and P&G brands since its launch, and is speaking to other FMCG majors.
“The margins in electronics are absolute rubbish, but with youth changing mobiles twice a year it is a category that gives volumes. In three to five years, we should have a fair amount of electronics, but also a reasonable share of home and personal care products which allow for regular, repeat purchases,” explained Mr Joshi.
The average value of a daily transaction on the channel is Rs 3,500, with around 3,000 confirmed orders a day from an average of 10,000 calls received. Around 95 per cent of products are sold via the cash-on-delivery model.
The revenue model is led by wholesale margins on products sold.