(Big deal) Malaysian pay-TV operator Astro launches home shopping business

Astro Malaysia Holdings Bhd, Malaysia’s leading pay-TV operator, has just announced that it is entering the home shopping market in Malaysia through a joint venture with a South Korean company GS Home Shopping Inc.

According to Malaysian newspaper The Star, the Astro GS Shop joint venture intends to operate its home shopping business through various platforms, including TV home shopping, online shopping and mobile shopping, among others. For home TV purchases, it will be available on both NJOI’s free channels and the Astro pay TV service.

This will enable a customer base of 3.8 million households in Malaysia to shop at their convenience, providing a retail reach of approximately 17 million consumers, a number unmatched by any physical retail chain in the country.

The launch of home shopping channels and services is planned for the second half of 2014.

“Many more consumers are expected to take advantage of the convenience of online and mobile shopping,” Astro said in a public statement.

Signing the contract for the Astro GS store

The company conducted feasibility studies on the potential of the business and concluded that home shopping would be commercially viable.

Astro has determined that the best strategy to enter this business is to work with a partner that has a proven track record in the home shopping industry, such as GSHS, is one of the leading home shopping operators in Asia, with a presence in South Korea, China, Vietnam, Indonesia, Thailand , India and Turkey.

E-commerce boom in Malaysia

The partnership marks another significant milestone in the e-commerce industry in Malaysia. As internet and mobile device penetration increases in the country, more consumers are consuming more content online. It is estimated that by 2016 the number of Internet users will be 21 million. This opens up huge opportunities in the e-commerce space for key players.

Early last week, we reported that 7 Eleven had also partnered with FoodPanda to offer delivery services to its users, hoping to capitalize on the increase in internet and mobile users using FoodPanda to order food. Companies are starting to realize that they need to reach out to customers and go where they are, rather than waiting for them to knock on the door.

While it is unclear whether Astro will offer its own consumer products or act as a distribution channel for other sellers such as eBay, Lelong, TaoBao, Rakuten, Zalora, Lazada and many other e-commerce players, the company is definitely positioning itself as a key player in the online shopping industry in Malaysia.

Definitely a big milestone in the history of the Malaysian e-commerce industry.

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