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Shop CJ gets Rs 500 crore funding, earmarks Rs 25 crore for marketing

Shop CJ gets Rs 500 crore funding, earmarks Rs 25 crore for marketing

Author | Abid Hasan | Monday, Jun 08,2015 8:13 AM

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Shop CJ gets Rs 500 crore funding, earmarks Rs 25 crore for marketing

Shop CJ formerly known as Star CJ has launched its first TV commercial showcasing company’s product offering that syncs with company’s philosophy to bring ultra-trendy, durable, cost-effective, innovative and customer-friendly products which delight the customers.

SHOP CJ Network Pvt. Ltd. (Formerly Known as STAR CJ Network India Pvt. Ltd) is a 50:50 joint venture between the South Korean home shopping major, CJ O Shopping Co. Ltd. and Providence Equity Partners group. Shop CJ has got 500 crores funding from Providence Partners and gave 50 % stake to them.

When asked by any chance the change in the name has impacted the sale, Kenny Shin, CEO, Shop CJ, replied, “Not really. May be only a minor percentage because it’s been a month and we don’t see any specific dip.”

He added, “We believe to be honest with you, there is no material impact because we started our TVCs in star TV network- Star Plus, Star Gold, Star Utsav, Life OK, Star Movies.”

With e-commerce sites going mobile, how will Shop CJ compete with them via TV?  Shin said, “Our 94 per cent sales come from TV. It’s our bread and butter. Out of that, about 40 per cent of our sales are from Delhi NCR and Mumbai. The rest of the sales come from different markets. From Southern market it is about 10 per cent. From Punjab, it is around seven to eight per cent. UP is at 10 per cent. The rest of the two-three percent comes from different rural areas.

On their marketing budget he said, “ Including last month, this month, next month, it is around Rs 20-25 crores. We are not going to continue with the TV commercial after the three months. Instead, we are going to convert the marketing budget to the mobile application side mainly.”
 

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