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Thinking Outside of the Box

Do we need The Shopping Channel? Or is it about 30 years too late?

During my preparations for a routine relaxing bath of pure pamper the other day, I seriously contemplated taking a cue from the recently launched ‘The Shopping Channel ad’ to arrange a series of mirrors that would allow me to watch TV from my bubble laden sanctuary.
The effort required to undertake such a task (obviously I didn’t pursue the job – I didn’t have enough mirrors anyway), caused me to reflect… is there anyone that would sincerely put that amount of effort into watching a channel dedicated to ‘celebrity’ endorsed product segments? In fact, even with Eva Longoria’s sponsorship, is there anyone that would watch the channel… period?
24 hours a day (8 hours being live), 7 days a week on Channel 18 on SKY and Freeview l HD, The Shopping Channel’s team of presenters including The Edge radio station’s Mike Puru; dancer, Candy Lane; league player turned boxer, Monty Betham and everyone’s favourite reality mum, Sally Ridge, bring the latest (or should we say, willing of paying) brands to the small screen.
Whilst presenters can commendably gush about how fantastic the latest steam mop is for up to 30 minutes, it is widely believed that people do not want to be sold to anymore. Gone are the days where we enjoy going into small boutiques to endure desperate salespeople breathing down our necks. Likewise, if we feel like we’re being targeted in the safety of our own homes, we’ll be changing the channel faster than you can say, ‘But wait, that’s not all’.

The question is… how does CEO, Alistair Duff, plan to captivate audiences when MY SKY, TiVo and other providers have made it possible for us to bypass ads completely?
In America - the home of the home shopping phenomenon - television shopping is on the decline thanks to the continual evolution and convenience of the internet. A Euromonitor International report found that “Home shopping sales declined during the recession as consumers cut back on overall purchasing and accelerated their shift to internet retailing. For retailers that mail physical catalogues, the combination of rising printing and postage costs with falling sales through this channel have led to them reducing page count, circulation, or ceasing catalogue operations entirely and focusing instead on e-commerce divisions. Even retailers that have traditionally operated in TV shopping, such as the Home Shopping Network (HSN) and QVC, have increasingly steered customers online instead”.
So is the New Zealand model of The Shopping Channel about 30 years too late?
With a projected goal of attracting 600,000 Kiwi women to tune in each week, I’m curious to see how effective and needed the channel will be. I guess time will tell the success of the model. So long as presenters keep away from the bad taste jokes that landed them in choppy waters in the beginning, here’s one inquisitive observer that will follow their progress with interest.
Nakita Ardern

Q+A with Alistair Duff
Alistair Duff has 25 years broadcasting experience with leading media organisations such as ITV London and Channel 10 Australia. He has worked with Mediaworks over a period of ten years, the last four as Director of Sales, and with TVNZ between 2002 and 2012. Given this experience, Alistair does appear to be a credible source as someone who has seen a gap in the market.
Why now to introduce a dedicated shopping channel into the New Zealand market?
The launch of the shopping channel is specific to the changing behaviour of consumers globally. The television component is the shop window. The business is based around the online e-commerce platform. Figures from PWC showed that two million New Zealanders purchased online last year with an average spend of $1400. Of the two million New Zealanders, 650,000 purchased product offshore which equates to just under one billion dollars lost to New Zealand and therefore the economy.
The shopping channel is about providing a platform that provides both international and local unique product, and there is definitely a focus on local product and businesses. Television, online, fulfilment - the shopping channel has combined these facets and created a shopping destination.
What goals has the channel set as benchmarks/ targets? E.g. revenue targets, audience targets
Because of the uniqueness of launching a shopping channel in New Zealand, there are no historical metrics to provide guidance. The most important factor at launch was that the process of buying to delivery and everything in-between was robust and worked. It has. Attracting an audience was obviously mission critical and initial research has confirmed we have achieved this objective. The pre-promotion campaign on Sky TV and MediaWorks in conjunction with bringing Eva Longoria to New Zealand created the platform, talk-ability and consumer awareness of the channel, therefore potential audience. We are comfortable with where the revenue is sitting and the week to week growth of sales. We are now into our fourth week and all trends are extremely positive. As we head into the Christmas buying period, our expectation is continued growth.
How successful has the channel been so far?
It has been successful on all levels. It has provided a much needed additional channel to market for many clients, we have been able to sell product that is a little more difficult to sell because it requires demonstration. The range and depth of unique product, both local and international, has provided a greater choice for consumers and people are trusting the shopping channel by buying product. That is really important.
How were the presenters chosen?
We undertook a casting call for presenters which was attended by over four hundred potential presenters. From this group and a few seasoned professionals our presenting team was chosen. They effectively went into a ten week presenter’s boot- camp to learn the tricks of the trade and prepare themselves for their shopping channel debut.
Is the opportunity for businesses to be featured on the channel affordable?
The affordability factor has been one of our great successes with all our clients and in many instances quite a number would never have been able to afford television in the traditional form. For $3500, a client receives approximately half an hour of demonstration time broken into 3 x 9 minute segments, coupled with their product on the e-commerce platform for a month; we warehouse then deliver the product. A second package of $10k provides 90 minutes broken into 3 x 30 half hours with the other elements. The affordability is unmatched in the market as is the total solution that is provided.