Sales jump for retailer helped by its location

Daily sales at Lotte Home Shopping have risen by over 30 percent since the company changed its name from Woori Home Shopping on May 1, the company said yesterday.
On average, the channel sold 3.1 billion won ($335 million) per day from May 1 to 13, a 37 percent increase compared to the same period last year. The Lotte brand is the main reason for the jump, said company representative Park Hye-wan.
But market watchers offer other reasons. Being able to have its shopping program broadcast on influential channels is the biggest. The success of a home shopping channel is directly related to the channel it is broadcast through.
Lotte paid higher fees to cable operators to have its channel located adjacent to major channels like KBS, MBC or SBS.
Sweepstakes marketing also helped boost sales, said experts.
However, businesses that are suppliers to the home shopping companies are not all happy with Lotte. “Lotte has a very high fee policy,” said a clothing manufacturer who declined to be identified. “We have to pay them a lot when our products are sold through Lotte.”

By Hwang Young-jin Staff Writer [yhwang@joongang.co.kr]