Poor Performance in Home Shopping Industry... Betting on PB Products

Lotte Homeshopping Develops New Products with 'MZ PB Development Team'
CJ OnStyle Strengthens Product Power with 35 Brands Including PB and LB to Improve Profitability

Lotte Homeshopping's 'MZ PB Development Team' introduced Wooju Protein.

[Asia Economy Reporter Lim Chun-han] The home shopping industry is seeking new growth avenues through private brands (PB) amid sluggish performance last year due to decreased demand for non-face-to-face shopping and the burden of transmission fees. They are focusing on strengthening product competitiveness by expanding PB areas such as fashion, beauty, and food.

On the 21st, Lotte Homeshopping operates a total of six PBs and sells over 50 products. In particular, they have formed an ‘MZ PB Development Team’ composed solely of MZ generation (Millennials + Generation Z) employees to focus on new product development. The ‘Uju Protein’ launched in January was sold exclusively on the crowdfunding platform ‘Wadiz,’ with over 70% of the initial production volume sold and funding amount exceeding the target by four times. They plan to release six additional products within the year, including solid shampoo bars, bamboo toothbrushes, and hangover remedies. Lotte Homeshopping will also introduce a fashion PB called ‘The Aizel,’ targeting women aged 35 to 45, this month.

CJ OnStyle operates 35 PBs and exclusive licensed brands (LB). They are expanding PBs mainly in the fashion sector, including Odense (kitchen), Oblang (beauty), Oh Haru Jayeon Gadeuk (health foods), At Sensual (living), Tailor Scents (fragrance), and Idea Zip (household goods). As a result, PBs accounted for about 20% of CJ OnStyle’s total handling volume last year. Going forward, CJ OnStyle plans to differentiate TV commerce and expand distribution channels by leveraging PB products.

Hyundai Homeshopping operates 10 PBs and exclusive brands. Representative brands include Lacciento, Gobi, J by, Lee Sang-bong Edition, Anna Sui, Martin Bal, Lenny by Lennybon, and Demian. The number of products from these brands increased by 43.4% compared to the previous year, and sales rose by 21.7% last year. Next month, they plan to relaunch Allevo with new products.

The reason home shopping companies are focusing on PBs is to improve profitability. Since PBs independently manage everything from planning to design and production, there are no brand usage fees or distribution costs, resulting in higher profit margins. They are also receiving positive responses from consumers. Lotte Homeshopping’s fashion PB LBL has surpassed a cumulative order amount of 500 billion won, CJ OnStyle’s fashion PB The Edge recorded about 100 billion won in sales last year, and Hyundai Homeshopping’s fashion PB Lacciento saw sales grow by more than 30% compared to the previous year.

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