Astro Makes 1st Foray Into E-Commerce
- Home Shopping JV to generate RM500 million in annual revenue by 2019
- Capitalise on Astro’s core expertise and infrastructure: access to 4.3 million homes and retail reach of 17 million consumers
- Soft launch was an unmitigated success, with over 115,000 products ordered up to date
Astro Malaysia Holdings Berhad (Astro), a leading integrated Southeast Asian consumer media entertainment group, and GS Home Shopping Inc., a leading Korean multimedia retailer, are proud to announce the launch of GO SHOP, a new 24-hour shopping service on Astro TV (Channel 118), Astro On The Go as well as via GO SHOP’s online and mobile platforms.
GO SHOP is Astro’s first foray into the e-commerce domain, enabling Malaysians to shop anytime, anywhere 24/7 via any mobile, tablet and PC of their choice.
“Malaysians are increasingly connected, savvy and informed, demanding only the very best hence, this signals our commitment to serve our customers even better by bringing all Malaysians even more choice, convenience and experience,” said Dato’ Rohana Rozhan, Chief Executive Officer, Astro. “It also allows us to diversify our business and tap into a growing global industry that is projected to be worth RM3.6 billion in Malaysia by 2020 with online shopping on a rising trend.”
The total capitalisation of the joint venture company is RM70 million, and is estimated to generate RM500 million in annual revenue over five years.
“Our chosen strategic partner of choice is one of Asia’s leading homeshopping business with a proven track record for over 20 years,” Dato’ Rohana added. “Complement that with Astro’s readily available state of the art infrastructure like our broadcast facilities, call centre, channel platforms and production studios, and we have the right expertise and best in class capabilities to serve Malaysians and to make this venture a success”.
GO SHOP will be a strong growth catalyst for Astro in terms of future earnings growth, targeting a readily addressable market of 4.3 million homes and 17 million consumers. E-commerce global growth trends today prove that home shopping is a fast growing retail segment, outstripping the growth of the brick and mortar retail stores. GO SHOP’s multi-platform reach aims to cater to Malaysians looking for an entertaining, enjoyable and convenient shopping experience.
“Today 55% of internet users in Malaysia shop online, and across multiple devices. This is anticipated to grow significantly as broadband penetration grows, incomes rise, credit and debit cards proliferate, and as Malaysians increasingly trust and recognise the benefits of shopping,” said Dato’ Rohana. “Our commitment in pursuit of providing our customers only the global best, is to build an end-to-end best-inclass experience in ecommerce, from a home shopping channel, to Astro On The Go, online and mobile platforms to the right products, the right pricing, and the right supply chain logistics, as well as an enabling Astro Payment Gateway that facilitates multiple payment options including debit and credit cards, online bank transfers and Easy Payment plans.
In turn, GS of Korea appreciates the vast business potential of the partnership and is confident that the dynamic retail environment in Malaysia will catalyse the growth of this business. “Home shopping improves lives, entertains people and expands the concept of retail in exciting new directions,” said Huh Tae-Soo, Chief Executive Officer, GS Home Shopping Inc. “Malaysia, as GS’ seventh international market, will benefit from decades of managing and fine-tuning a successful and
proven retail model.”
Since its soft launch on 1 November 2014, GO SHOP has enjoyed huge support, with over 115,000 products ordered todate. Currently, 60 products are available, with plans to double this within a year.