Some months ago, a Korean company, GS Group, decided to collaborate with MNC group in creating 24-hour TV home shopping channel in one of the MNC channels. This news was significant since the Indonesian media has not had a 24-hour TV home shopping channel before, so this channel will be the first 24-hour TV home shopping channel in Indonesia. Before, the Indonesian media have had a TV home shopping channel called O-Channel which is in a form of ‘infomercials’. This indicates that Indonesian consumers did not prefer buying something off-line to on-line in the past.
However, having a 24-hour TV home shopping program in Indonesia means that Indonesian consumers who like to buy products through the on-line way, especially TV home shopping, is increasing. Moreover, many merchants such as small businesses named PT. Emprani have been more focused on selling a product via on-line than off-line such as selling at a retail store. This phenomenon is significant because having a TV home shopping channel implies a change of Indonesian’s consumption habit from off-line shopping to on-line shopping at home.
Therefore, this article analyzes on the reasons why Indonesian come to like to buy something through TV home shopping programs. Through this article, I would like to show how TV home shopping has influenced Indonesian’s habit to consume. Some years ago, we could not imagine that, without seeing real product, consumers would be willing to purchase some products. They usually went to the store and saw products, and if they liked the product they see, they decided to buy the product. This way of buying sometimes used to take much time since they must waste quite some time to go to the store.
However, it is very easy to find consumers who buy something on-line, such as through TV home shopping, without wasting much time. Thus, the objective of this article is to investigate what factors from TV home shopping Indonesian’s habit to consume change. In this paper, I analyze the reason why Indonesian’s habit to consume is changed by using qualitative data from in-depth interview done to the buyers of TV home shopping programs and the workers at the TV home shopping channel, O-Channel.
The interviews consist of some questions such as the kinds of the products from TV home shopping that consumers loved, and who likes it. Moreover, the research is based on some data from the Indonesian Chamber of Commerce, about the past and present condition of TV home shopping. The paper begins with the difference between the past and present conditions of Indonesian in regards to TV home shopping are based on the data taken from the Ministry of Commerce and Industry. After that, I analyze on the reason why Indonesian people like to purchase something via TV home shopping.
To analyze this point, I use the result of the interviews as what I have mentioned above. Theoretical and Conceptual Framework It is true that TV home shopping industry has been developing more and more. Television shopping channels, such as the Home Shopping Network from the US, reach a potential market of 90 million $ of television and Internet shoppers every year, making them an ideal platform for new inventions and trendy products (Monica Patrick, Demand Media, pr 1).
Actually, this phenomenon is already common, and people can easily access TV home shopping channel and their products. Why is the TV home shopping is promoted as widely as now? According to a reporter, Amy Cheung, from The China Perspective, many small businesses faced financial difficulty due to economic crisis in 2006, so these small businesses wanted to reduce all types of costs, and one of them is advertising expenses. Thus, they decided to use TV home shopping as their marketing strategy.
It means that it was inevitable for them to choose TV home shopping to promote their products. Besides, the strategy helped them to develop their business because the result of selling products through TV home shopping is better than the result of using TV commercial advertisement. Two dominant television shopping channels in the US, Quality Value Convenience (QVC) and Home Shopping Network (HSN), are leading the t-commerce market (Economist, 1996). QVC and HSN generated more than $5. 7 and $2. billion sales in 2004, respectively (QVC Corporate Facts, 2006: HSN Company Information, 2006).
HSN reported annual sales of approximately $53. 4 million in 1986, up from $4. 9 million in 1985 (Parker 2007). This data indicates that consumers who purchase a product via TV home shopping are increasing, and it means that people’s habit to consume is changed by the increase of TV home shopping. Indonesia is also not different from the example above. There are many small businesses from local and overseas which have used the same strategy as the small business above in Indonesia.
As a result, the present Indonesian media has a lot of TV home shopping channel, such as like O-Channel, Jak TV, and B-Channel. Thus, Indonesian consumers are unavoidably exposed to TV home shopping. It means that Indonesian consumers are forced to be consumers or spender, buying something via TV home shopping. In this article, I am particularly concerned about the reason why Indonesians prefer to consume something from TV home shopping, which is then used by small business in producing goods as strategy to overcome their financial difficulty.