Last Year TV Home Shopping Sales Increased by 8.5%... SME Product Allocation Ratio Also Expanded

[Asia Economy Reporter Joselgina] Last year, TV home shopping's sales, operating profit, and the ratio of small and medium-sized enterprise (SME) product programming all increased compared to the previous year.

The Ministry of Science and ICT announced on the 15th key statistics related to SME support from seven TV home shopping companies, including GS Home Shopping, CJ ENM, Hyundai Home Shopping, NS Shopping, Home&Shopping, and Gongyoung Home Shopping.

Last year, the total sales of the seven TV home shopping companies amounted to 5.5673 trillion KRW, an 8.5% increase from the previous year, and operating profit was 642.7 billion KRW, a 2.0% increase from the previous year.

The ratio of SME product programming, a major public duty of TV home shopping, was 70.8% (42,833 hours), which is 1.0 percentage point higher than the previous year.

The ratio of SME products programmed during the so-called "prime time," when viewers purchase many products, was 67.1% (15,169 hours), up 0.6 percentage points from the previous year.

The number of SMEs that sold products through TV home shopping last year was 3,650, with 50,603 programming instances. The average number of programming instances per SME was 13.9 times, an increase from 13.1 times the previous year.

To alleviate the inventory burden on SMEs, the amount of direct purchases and sales of SME products by TV home shopping companies increased by 24% compared to the previous year, totaling 449.8 billion KRW.

The number of SMEs involved in direct purchases increased by 5.1%, from 668 in 2018 to 702 in 2019. During the same period, the number of SME products directly purchased increased by 3.7%, from 1,118 to 1,159.

Additionally, fixed-rate commission broadcasts for SME products, which cause commission burdens on SMEs, accounted for 5,537 hours, representing 9.2% of total broadcast time. This is a decrease of 0.2 percentage points compared to the previous year.

The Ministry of Science and ICT stated, "Through the disclosure of these key related statistics, we plan to encourage government-approved broadcasters, TV home shopping companies, to faithfully fulfill their public broadcasting roles, including expanding support for SMEs."

This content was produced with the assistance of AI translation services.