China Seven Star Shopping Limited, a leading television shopping company in China, suffered a big loss of HK$380 million in 2007 and as a result the company now seeks to shift to online video shopping.
The 2007 financial report released by Seven Star Shopping last week shows that the company suffered a deficit of HK380 million over the year. The company attributed the heavy loss to the remarkable increase of television advertising fees, industry competition and depreciation of its business resulting from many acquisitions.
In face of a crisis mainly caused by the increase of advertising fees, television shopping service providers in China have each begun to shift their businesses. But different from its competitor Acorn International which now replies on offline distribution, Seven Star Shopping has turned its eyes to e-commerce.
Han Yun, the company's marketing director, says they will formally put their video call center, a core part of their online video shopping service, into operation in May this year so that consumers can have video-based communication with the company's shopping guide via IPTV or 3G services.