ABS-CBN pumps P200M into Korean shopping channel
MANILA, Philippines - ABS-CBN Corporation is investing P200 million in a partnership with Korea-based home shopping giant CJ O Shopping Corp. as the media giant re-enters the TV home shopping business.
This is the second time the Lopez-owned media group is venturing into a TV home shopping lifestyle. ABS-CBN chairman Eugenio Lopez III stressed that they have heeded the lessons from their failed enterprise called Skymall in the 1990's.
“We closed it (Skymall) down a few years after and walked away with a valuable lesson: We need a strong and competent partner. ABS-CBN is in the business of reaching audiences so we needed a partner in the business of selling great products,” Lopez shared on Tuesday, October 29.
The joint venture called CJ O Shopping Corp was hatched after the two groups met in 2012.
“Choosing the CJ Group was not a difficult one since we share a similar history and adhere to the same work culture. Our companies were both founded by families with roots in the sugar industry and were both born exactly 60 years ago,” Lopez quipped, referring to CJ O Shopping chief executive officer Harri Lee.
Lee explained that "home shopping business is a complex combination of the retail, broadcasting, logistics, and IT systems."
He said he is banking on the synergy between the two groups: CJ O Shopping’s global business expertise and ABS-CBN’s trusted image and strong influence.
The new venture is meant to capture opportunities in the changing lifestyle needs of the ABS-CBN viewers, noted Paolo Pineda, head of ABS-CBN Business Development.
“Sometimes people don’t have the chance to go out and shop for themselves for things they need at home. We are offering consumers better service and better options as life becomes more mobile and hectic,” Pineda said.
Pineda said they have noted the proliferation of online shopping sites, which he said are "quite similar to what we want to do, because it’s really about another option to the mall."
The partners have started operating the O Shopping Channel, which broadcasts 24/7 shopping programs on SkyCable and Global Destiny, and airs programs through ABS-CBN’s Channel 2 and Studio 23.
It offers a wide range of products, from kitchen to home, exercise, and beauty products. It will eventually offer cosmetic products and other merchandise that customers will demand, Pineda said.
“It is important for CJ O to be present in such a young and dynamic market like the Philippines," noted CJ O president and chief executive officer Eddie Bak. Outside Korea, CJ O Shopping also has presence in Shanghai, Tianjin, and Guangzhou in China, India, Vietnam, Thailand, Japan, and Turkey. - Rappler.com