Home shopping channel Shop CJ has announced its expansion plans for Karnataka market.

“We have set up a warehouse in Bengaluru and this is the third such warehouse apart from the ones we have in Gurgaon and Navi Mumbai,” Shop CJ Director and CEO Kenny Si Yeol Shin said.

Shop CJ has a warehouse each in Delhi, Mumbai and Bengaluru that together are spread over 2.5 lakh sq feet. Shop CJ Network, formerly known as STAR CJ Network India is a 50:50 joint venture between the South Korean home shopping major, CJO Shopping Company and US-based Providence Equity Partners group.

Shin also added that the company gets around 6-7 per cent of its sales from Karnataka and 10 per cent from South India.

Already, the company in a press meet in Telangana said that it will launch Telugu and Tamil broadcasting early 2016. Additionally, we will also look to tie up with Multi-Service Operators (MSO) in Kerala, in addition to the other four southern States. The company already has tie ups with both DTH and cable TV providers in West and North India.

For Shop CJ, the key retail category that sells the most in Karnataka is home appliances, kitchen and household goods which contributed around 50 per cent. “A substantial portion of Shop CJ’s sales come from technology products such as laptops, mobile phones, printers, followed by women centric products like fashion garments, beauty products, jewelry,” said CFO N.Ramakrishnan.

Company executives said that Shop CJ is eyeing a 30 per cent growth in revenues this fiscal year and confident of growing in the range of 25-30 per cent in the next five years as it believes that it has differentiated offerings that can compete with e-commerce giants like Amazon, Flipkart and others.

“They are all moving into a marketplace model, whereas we will invest in our warehouses and last mile such as cable operators and DTH service providers,” said Shin.

Shop CJ reaches around 6.5 crore households in India and currently caters to about 40 per cent of the market.

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