Homeshop18 – Key statistics and Numbers to Know

May 8, 2009

By sinha

Key statistics of Homeshop18 business:

51% of the business comes from TV channel ; Internet consstitutes only15%
35% of buyers are from the metros; 65% Tier II and Tier III cities
60% of buyers are males ; 40% females
350 brands; 20,000 SKUs (Stock keeping units)

The company raised $21mn from SAF Partners and Network18, in July of 2008 and now reaches out to over 2,000 cities in India.

Here is presenting an interview with Sundeep Malhotra, CEO, HomeShop18 on company’s background, top selling category and future plans.

Share some background of Homeshop18.

1.5 years ago, definition of virtual ebay was either ecommerce or teleshopping.

Ecommerce in India still does not have more than a few million userbase and most importantly, the user base hasn’t grown exponentially.

Teleshopping has been all about selling particular category of products (spirituality/health/wellness). Driven by short term mindset – sold ‘magic’ more than genuine products.

Both these industries left a lot to be desired.

Homeshop18, in it’s 2 years of existence has created a market of virtual retail (present in all channels, except retail) :

Print : 20/30 alliances
Internet
Catalogue
Future plans include radio as well as mobile.

What are the top selling products at Homeshop18?

These are the broad categories that are top selling:

Consumer Electronics : Camera [Homeshop18 claims that 5% of camera sold in India are thru’ HS18 channel], Mobile Phone and Microwave Ovens.
Home Appliances
Jewellery, and
Home & Kitchen products

Please share some key statistics regarding Homeshop18’s userbase

1.3mn customers
18% are repeat customers.
New transaction every 13 seconds.
Run-rate of Rs. 1 crore a day.

What’s your take on Homeshop18’s business model? It’s quite a unique model given that it stands between the retail and virtual world. What’s interesting is that the company is interested in present in all consumer channel, except retail and is the first one to break into full time TV programming.

Tags: homeshop18, homeshop18 business model, shopping in india

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Author

Viral Jani on May 8, 2009 at 6:56 pm

A runrate of 1 cr per day…which I am assuming is revenue figure…it comes to a total of 365 crore in a year..By quoting this figure I am afraid they are inviting competition in their space…because not more than 3 channels must be making more than 365 crore in a year in India!!

Titan on May 8, 2009 at 8:28 pm

One of their key appliances supplier is a close friend and always cribs about HomeShop18 not paying their vendors at all. They usually pay after 3 months of material delivery. 80% of their cash on delivery products are not accepted by the shopper on delivery. Their break even is quite far ahead. Like many businesses Network18 entered back in the boom time, this businesses is also facing a heavy cash crunch.

HomeShop18 on May 15, 2009 at 10:54 am

HomeShop18 is a professionally managed company. We work on mutually agreed MOUs with our partners and our partners include some of the leading brands in the country – such as Samsung, Philips, Onida, IFB, Godrej, Whirlpool, etc. Your information about 80% returns on products shipped through the “cash on delivery” mode is wholly inaccurate. We would have stopped this shipment mode long back, as it would have made the business unviable. Insofar as break-even is concerned, we would only like you to know that this is a growth business and it is growing very well. It is a business to stay invested in and to scale up. For Network18, our business is a core investment and a business that the group strongly believes in. Finally, this business is not facing any cash crunch at all. There are many media companies and retail companies which have been badly hit by this recession, but our business is not one of them. We have held up well and grown even in these times. And most importantly, HomeShop18 has the full backing of its promoters.