Snapdeal to launch its TV-commerce channel this year

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The e-commerce arena is heating up pretty fast with each of the juggernauts (Flipkart, Amazon, Snapdeal) trying to go ahead of the competition. Snapdeal has now entered into a join venture with Macro Commerce PVT Ltd to launch a new channel, Den Snapdeal TV which will be a TV-commerce channel like HomeShop 18. The company is aiming to generate a revenue of Rs 500 crore from it in the first year itself.

DEN-India

Internet still has a limited reach in India and the reach decreases in the Tier 2, Tier 3 and Rural areas. But television is present there and this is exactly what e-commerce companies will be looking forth to in future. Cable operators will have to play a key role in this as they’d be the ones airing the channels for the masses. The scepticism that many may have against making payments online will also be taken care of. Den network is a cable distribution company and it will be handling the network penetration for the company.

What this has done is that it has opened up the opportunity to tap over 13 million households across 200 cities. E-commerce websites, eventhough are growing at a brisk pace, will reach a level of stagnation unless the internet and online banking penetration doesn’t increase. So having an offline model somewhat makes sense as an option to diversify.

Also read : DEN Networks joins hands with the E Retailer giant Snapdeal to launch a Tele Shopping Channel

Products under the categories of dinner and cookware sets, kitchen appliances, tablets and mobiles and fashion jewellery will be the ones that will be sold through the website. When people see things on TV, they can somewhat relate to how the product will look in real life and this is what will drive TV-commerce sales.

We wouldn't be surprised if the coming couple of years witness the launch of more TV channels from the e-commerce giants.

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