HOMESHOPPING IN THE

PHILIPPINES
Euromonitor International
January 2019
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Homeshopping Records Modest Growth in A Highly Competitive Retailing Industry................ 1
Homeshopping Players Move Towards Multi-channel Retailing ............................................... 1
Growing Penetration of Digital Television To Benefit Homeshopping Retailers........................ 1
Competitive Landscape ................................................................................................................ 2
O Shopping Now Shown Around the Clock on Abs-cbn TV Plus .............................................. 2
Shop TV Launches A New Mobile App ..................................................................................... 2
Channel Data ............................................................................................................................... 2
Table 1 Homeshopping by Category: Value 2013-2018 ............................................ 2
Table 2 Homeshopping by Category: % Value Growth 2013-2018 ........................... 3
Table 3 Homeshopping GBO Company Shares: % Value 2014-2018 ...................... 3
Table 4 Homeshopping GBN Brand Shares: % Value 2015-2018 ............................ 3
Table 5 Homeshopping Forecasts by Category: Value 2018-2023 ........................... 4
Table 6 Homeshopping Forecasts by Category: % Value Growth 2018-2023 .......... 4

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HOMESHOPPING IN THE
PHILIPPINES
HEADLINES
 In 2018 homeshopping records current value growth of 4% to reach sales of PHP1.3 billion
 Homeshopping operators shift to multi-channel retailing to remain relevant
 O Shopping, owned by the ABS-CBN network, remains the most popular homeshopping
channel
 Over the forecast period homeshopping is expected to post a current value CAGR of 7% (4%
at constant 2018 prices) to reach sales of PHP1.8 billion in 2023

PROSPECTS

Homeshopping Records Modest Growth in A Highly Competitive

Retailing Industry
Homeshopping posted fairly modest growth in 2018 when compared to other retail channels.
Homeshopping is, however, expected to continue to record positive growth as operators adapt
their business models to keep up with changing consumer behaviour. The ability to thoroughly
demonstrate products remains a key strength of the channel and will continue to attract the
interest of consumers. Homeshopping players also offer instalment schemes to help drive sales.
In recent years, they have also widened their offering beyond traditional products sold in this
channel, for example to beauty and skin care products.

Homeshopping Players Move Towards Multi-channel Retailing

Homeshopping players have recognised that ordering via telephone is less common
nowadays and that they have to evolve to widen their reach. While product demonstration on
television remains a core strength of homeshopping, ordering and purchasing methods need to
be diversified. Homeshopping players are thus now adding their website details to their
telephone numbers on their television shopping sites to give consumers another option. Indeed,
homeshopping retailers like O Shopping and Shop TV now have fully functioning online
platforms which offer a wide range of products, not only those shown in television
demonstrations. In addition, Shop TV also accepts orders through Facebook Messenger. These
retailers offer nationwide delivery, free delivery within Metro Manila and cash on delivery, similar
to other e-commerce operators.

Growing Penetration of Digital Television To Benefit Homeshopping

Retailers
There remains potential for further growth over the forecast period thanks to the increasing
penetration of digital television, which will enable more Filipinos to have access to 24-hour
television shopping channels such as O Shopping and Shop TV. Free-to-air channels usually
only air television shopping programmes at a certain time, commonly between midnight and the
morning. However, thanks to the growth of digital television in the Philippines, dedicated
television shopping channels should achieve higher viewing rates. Around 51% of residents in
Metro Manila now own a digital television, according to a survey conducted by Pulse Asia. This

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figure is expected to rise rapidly, with penetration increasing even faster outside Metro Manila
as ABS-CBN TV, currently a major player in digital black boxes, is set to face competition from
rival network GMA, which plans to offer a cheaper and smaller digital box. These technologies
aim to replace the 17 million analogue televisions in the country.

COMPETITIVE LANDSCAPE

O Shopping Now Shown Around the Clock on Abs-cbn TV Plus

O Shopping announced in July 2018 that it can now be watched on ABS-CBN Plus Channel
8, which should certainly increase its viewing figures. On ABS-CBN TV Plus, O Shopping
programmes benefit from a much better definition than on traditional analogue televisions.
Indeed, Filipinos can watch either on its 24-hour dedicated channel or everyday after regular
shows on Channel 2 (ABS-CBN main channel).

Shop TV Launches A New Mobile App

Home Shopping Network’s (HSN) Shop TV was one of the first retailers to launch a mobile
app in 2015. HSN reported a 47% increase in sales for Shop TV after launching the app. This is
in line with HSN’s goal to tap into both offline and online channels and create an omnichannel
shopping experience. New channels are still being introduced to complement the traditional
television model of homeshopping retailers. HSN believes that having an online store and
mobile app will help to grow its sales.

CHANNEL DATA
Table 1 Homeshopping by Category: Value 2013-2018

PHP million
2013 2014 2015 2016 2017 2018

Apparel and Footwear - - - - - -

Homeshopping
Beauty and Personal - - - - - -
Care Homeshopping
Consumer Appliances 48.0 50.4 53.5 56.9 58.8 64.7
Homeshopping
Consumer Electronics - - - - - -
Homeshopping
Consumer Health - - - - - -
Homeshopping
Food and Drink - - - - - -
Homeshopping
Home Care Homeshopping 1.6 1.5 1.4 1.3 1.2 1.2
Home Improvement and - - - - - -
Gardening Homeshopping
Homewares and Home - - - - - -
Furnishings Homeshopping
Media Products - - - - - -
Homeshopping
Personal Accessories - - - - - -
and Eyewear Homeshopping
Pet Care Homeshopping - - - - - -
Traditional Toys and - - - - - -

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Games Homeshopping
Video Games Hardware - - - - - -
Homeshopping
Other Homeshopping 214.1 603.9 869.0 1,108.8 1,159.1 1,198.6
Homeshopping 263.8 655.8 923.9 1,167.1 1,219.1 1,264.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Homeshopping by Category: % Value Growth 2013-2018

% current value growth, retail value rsp excl sales tax

2017/18 2013-18 CAGR 2013/18 Total

Apparel and Footwear Homeshopping - - -

Beauty and Personal Care Homeshopping - - -
Consumer Appliances Homeshopping 10.1 6.1 34.7
Consumer Electronics Homeshopping - - -
Consumer Health Homeshopping - - -
Food and Drink Homeshopping - - -
Home Care Homeshopping -3.7 -5.6 -25.1
Home Improvement and Gardening - - -
Homeshopping
Homewares and Home Furnishings - - -
Homeshopping
Media Products Homeshopping - - -
Personal Accessories and Eyewear - - -
Homeshopping
Pet Care Homeshopping - - -
Traditional Toys and Games Homeshopping - - -
Video Games Hardware Homeshopping - - -
Other Homeshopping 3.4 41.1 459.8
Homeshopping 3.7 36.8 379.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Homeshopping GBO Company Shares: % Value 2014-2018

% retail value rsp excl sales tax

Company 2014 2015 2016 2017 2018

A CJ O Shopping Corp 57.2 65.2 70.3 68.9 68.1

Homeshopping Network Inc 23.8 18.6 15.6 15.5 14.7
Others 19.1 16.2 14.1 15.6 17.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Homeshopping GBN Brand Shares: % Value 2015-2018

% retail value rsp excl sales tax

Brand Company (GBO) 2015 2016 2017 2018

O Shopping A CJ O Shopping Corp 65.2 70.3 68.9 68.1

Shop TV Homeshopping Network Inc 18.6 15.6 15.5 14.7

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Others 16.2 14.1 15.6 17.3

Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 5 Homeshopping Forecasts by Category: Value 2018-2023

PHP million
2018 2019 2020 2021 2022 2023

Apparel and Footwear - - - - - -

Homeshopping
Beauty and Personal - - - - - -
Care Homeshopping
Consumer Appliances 64.7 67.3 70.0 72.8 75.6 77.3
Homeshopping
Consumer Electronics - - - - - -
Homeshopping
Consumer Health - - - - - -
Homeshopping
Food and Drink - - - - - -
Homeshopping
Home Care Homeshopping 1.2 1.1 1.1 0.9 0.9 0.9
Home Improvement and - - - - - -
Gardening Homeshopping
Homewares and Home - - - - - -
Furnishings Homeshopping
Media Products - - - - - -
Homeshopping
Personal Accessories - - - - - -
and Eyewear Homeshopping
Pet Care Homeshopping - - - - - -
Traditional Toys and - - - - - -
Games Homeshopping
Video Games Hardware - - - - - -
Homeshopping
Other Homeshopping 1,198.6 1,245.5 1,294.6 1,345.4 1,397.5 1,452.3
Homeshopping 1,264.5 1,313.9 1,365.8 1,419.2 1,474.1 1,530.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

Table 6 Homeshopping Forecasts by Category: % Value Growth 2018-2023

% constant value growth, retail value rsp excl sales tax

2018/2019 2018-23 CAGR 2018/23 Total

Apparel and Footwear Homeshopping - - -

Beauty and Personal Care Homeshopping - - -
Consumer Appliances Homeshopping 4.0 3.6 19.5
Consumer Electronics Homeshopping - - -
Consumer Health Homeshopping - - -
Food and Drink Homeshopping - - -
Home Care Homeshopping -6.8 -6.0 -26.6
Home Improvement and Gardening - - -
Homeshopping

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Homewares and Home Furnishings - - -

Homeshopping
Media Products Homeshopping - - -
Personal Accessories and Eyewear - - -
Homeshopping
Pet Care Homeshopping - - -
Traditional Toys and Games Homeshopping - - -
Video Games Hardware Homeshopping - - -
Other Homeshopping 3.9 3.9 21.2
Homeshopping 3.9 3.9 21.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

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