Rohana (fifth left), Rozalila (fourth left) and Huh (fourth right) during a photo taking session after the official launch of GO SHOP.
KUALA LUMPUR: Astro Holdings Bhd (Astro) with its joint venture with Korean company GS Home Shopping Inc, officially launched its new 24-hour shopping service GO SHOP yesterday with an aim to generate RM500 million annual revenue over the next few years.
Since its soft launch on Nov 1 last year, GO SHOP has seen over 115,000 products ordered and currently, 60 products are available with plans to double within this year. It has since seen 800 new customers daily.
In fact, Sabah and Sarawak have already contributed about 10 per cent to Astro GO SHOP, revealed chief executive officer Datuk Rohana Rozhan.
“If we look at GO SHOP, it is on TV and it’s also on mobile. We’re counting on the fact that the infrastructure can be an enabler, so that there’ll be more people buying via smartphone,” Rohana told the press after the official launch of Astro GO SHOP yesterday.
“Today 55 per cent of internet users are shopping online. with broadband and smartdevice proliferation and people having more access to debit and credit cards, we will see an exponential growth.”
During the launch, Rohana said Astro’s chosen strategic partner of choice is one of Asia’s leading home shopping business with a proven track record for over 20 years.
“Complementing Astro’s readily available state-of-the-art infrastructure such as broadcast facilities, call centre, channel platforms and production studios, we have the right expertise and best in class capabilities to serve Malaysians and to make this venture a success,” she added.
GO SHOP is Astro’s first foray into e-commerce. It is a 60-40 joint venture effort for the establishment of Astro GS Shop Sdn Bhd (AGSSB) with Astro’s wholly owned subsidiary, Astro Retail Ventures Sdn Bhd and GS Home Shopping.
“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,” Rohana said in her speech during the launch.
“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.”
The total capitalisation of the joint venture company is RM70 million and is estimated to generate RM500 million in annual revenue over five years.
Meanwhile, GS Home Shopping chief executive officer Huh Tae-Soo said, “Home shopping improves lives, entertains people and expands the concept of retail in exciting new directions.”
He added, “Malaysia, as GS Home Shopping’s seventh international market, will benefit from decades of managing and fine-tuning a successful and proven retail model.”
Datuk Rozalila Abdul Rahman, chief executive officer of AGSSB said cCompelling infotainment and real-time reality TV elements are woven into each segment, creating a rich viewing experience.
“The latest trends in digital and electronics, home and kitchen appliances, lifestyle, fashion accessories and cosmetic products will be offered and further enhanced through product bundling, setting us apart from traditional retail outlets.”
Astro expects GO SHOP to be a strong growth catalyst for the company in terms of future earnings growth, targeting a readily addressable market of 4.3 million homes and 17 million consumers.
Astro GO SHOP is on Channel 118 and is also available on Astro On The Go as well as Astro’s GO SHOP online website and mobile platforms.