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Japan homeshopping market increased by 3% in 2013
Homeshopping in Japan - a new market research report on 2014-04-30 03:30:03
Homeshopping in Japan declined in current value by 2% in 2013. The remarkable expansion of internet retailing throughout Japan towards the end of the review period continued to have a negative effect on homeshopping overall during 2013. Homeshopping in Japan can be divided into two major formats: TV homeshopping and catalogue homeshopping. Catalogue homeshopping involves products selected from catalogues and ordered over the telephone or through mail order and this format accounted for the majority of homeshopping value sales in Japan in 2013, despite suffering further declines. In contrast, TV homeshopping continued to record positive growth during 2013 due to the strong performance of TV homeshopping retailers such as Jupiter Shop Channel Co Ltd, QVC Inc Japan and Japanet Takata. This positive growth, however, was not enough to counter the negative growth recorded in catalogue homeshopping as TV homeshopping comprises a small proportion of total homeshopping value sales in Japan.

Japan Consumers Cooperative Union (JCCU) maintained its leading position in homeshopping in 2013 with a value share of 34%. The company operates in multiple channels including store-based retailing, internet retailing, homeshopping and direct selling. Among these multiple channels, the majority of orders received by JCCU are made by customers physically submitting order forms. The primary customers of JCCU are in their 50s and 60s and comprise people who are accustomed to catalogue mail order shopping rather than internet retailing. While the proportion of the company´s value sales derived from internet retailing has been increasing in recent years, catalogue homeshopping is likely to remain its primary sales channel for the foreseeable future.

Homeshopping in Japan is expected to decline in constant value at a CAGR of -2% over the forecast period, falling to annual sales of 2.6 trillion by 2018. The relentless rise of internet retailing is expected to have a negative effect on all product categories in homeshopping during the forecast period. In particular, given the strong growth expected in apparel and footwear internet retailing over the forecast period, mergers and acquisitions between the leading players in apparel and footwear homeshopping. During July 2013, Dinos Inc and Cecile Co Ltd, two major players in apparel and footwear homeshopping, merged to form Dinos Cecile Co Ltd. Just two months later in September 2013, Dinos Cecile acquired the apparel and footwear homeshopping operations of Image Holdings Co Ltd. The new company has retained the Image brand and has also gained access to Image´s primary customer base, which is formed of women in their 20s and 30s. Such mergers and acquisitions activity has enabled Japan´s homeshopping companies to record further growth in order to compete not only against other retailers engaged in homeshopping but also retailers engaged in other channels. As such, the appearance of more dynamic mergers and acquisitions activity is expected in homeshopping in Japan during the forecast period.

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