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  3.  A Rush of Midnight Orders! The Shop Channel Business Model Captures Customers’ Hearts

2024.7.1

Business

A Rush of Midnight Orders! The Shop Channel Business Model Captures Customers’ Hearts

In this series, we shine a spotlight on group companies of Sumitomo Corporation. This time, we focus on Jupiter Shop Channel, who operates Shop Channel, Japan’s most popular shopping channel. Jupiter Shop Channel’s unique, appealing product lineup and programming that values communication with viewers have gained the support of many customers, mainly women, since opening in 1996.
In this time where internet shopping is at its peak, how is it that products sell through Shop Channel? We delve into the characteristics of the channel that has been delivering “heart-pounding moments of delight” to viewers.

  • Media Commerce Unit
    Media Commerce & Contents SBU
    Sumitomo Corporation

    Ayane Honda

    Joined Sumitomo Corporation in 2022 with a dream to create a new business that combines digital technology with something. Since her first assignment, she has been handling management tasks for Jupiter Shop Channel, engaged in shareholder adjustments for JCOM Co., Ltd., KDDI CORPORATION, and Sumitomo Corporation as well as the risk management and follow-ups for investments and projects.

  • Buyer, Merchandising Department No. 2
    Jupiter Shop Channel Co., Ltd.

    Kazuo Fujii

    Joined Sumitomo Corporation in 2017. Wanting to engage in B-to-C business, he was seconded to Jupiter Shop Channel in October 2019 after handling the main operations of Shop Channel. He then worked as a sales producer, overseeing live broadcast operations for two and a half years. Since April 2022, he has been working as a buyer in the health care product and supplement categories.

  • General Manager, E-Commerce Department
    Jupiter Shop Channel Co., Ltd.

    Osamu Kishiyama

    Has consistently handled online marketing and systems-related work since joining Sumitomo Corporation in 1998. He helped with launching e-commerce joint ventures in Indonesia and China. Since being seconded to Jupiter Shop Channel in 2021, he has been handling e-commerce website operations and sales marketing. He also manages the company’s official social media accounts, such as LINE, and works to attract customers.

Jupiter Shop Channel Co., Ltd.
Jupiter Shop Channel Co., Ltd.
(Available in Japanese only)

Business Overview: Management of direct marketing business centered around Shop Channel, which conducts correspondence sales via CATV broadcasts, satellite broadcasts, the Internet, catalogs, and other media.
Established: November 22, 1996
Revenue: 158.4 billion yen (FY2023)
Number of employees: 978 (as of the end of March 2024)
Number of households able to view: 32.08 million (as of the end of March 2024)

Exterior of the new studio
The new Shop Channel Studio in operation since 2021. Supports 4K broadcasting and can communicate the allure and value of products more vividly and realistically.

Keyword1
Around the clock shopping entertainment on live TV

Ayane Honda

Shop Channel is a shopping channel that communicates the allure of various products to sell them. Many e-commerce websites require users to search for and purchase products on their own, but Shop Channel is a completely different business model. It thoroughly explains the appeal of products seen by customers for the first time, leading to purchases. Despite the number of households that can view our channel having plateaued, Shop Channel continues to grow sustainably as Japan’s largest shopping channel.

Shop Channel’s contact center for order reception receives an average of 60,000 calls a day, and a single day’s broadcast can sell just over 2.8 billion yen worth of products. There are a few reasons Shop Channel has gained such passionate support from its customers. One reason is our commitment to programming. One broadcast lasts one hour. The CAST (creative advisor of shopping tour) and guests (product developers, manufacturer employees, designers, etc.) take time to share both the products’ appeal and the thoughts of those involved in creating the products. With the aim of flexibly adapting to the customers’ response and providing shopping entertainment, the show is broadcasted live 24/7, 365 days a year.

During the program, information on product sales and inventory is consolidated under the sales producer, who is in charge of the program in the sub-control room. The sales producer gives guidance, such as “recommend colors other than black, too” and “change the product’s position to make it more visible,” and constantly communicates inventory information to the cast. There are also times when customers talk directly with the studio through the phone. This two-way communication that is unique to live broadcasts creates timeliness, a sense of reality, and fun, entertaining moments. We have also received comments from viewers saying that they feel motivated when they turn on the TV late at night to see the cast giving their all. This shows that the customers are noticing the value of live broadcasts.

Personally, before this job, I felt little interest in television shopping, but after joining such an enthusiastic worksite, I became convinced that this was a business with future potential. I think that even my generation, which rarely watches television, would enjoy watching if it had an opportunity to do so. I hope that I will be able to play an active role at the worksite while supporting the challenges of Shop Channel.

Keyword2
A product selection and video presentations unique to Shop Channel

Kazuo Fujii

Another appeal of Shop Channel is its assortment of products. The channel introduces approximately 500 products a week, including fashion goods, cosmetics, apparel, home electronics, and food. In recent years, commodities such as trips, cruises, the creation of family trees, and premium photo sessions at photo studios are gathering attention.

These products are selected for their reasonable prices, uniqueness, narrative, timeliness, and scarcity based on Shop Channel’s own criteria to provide customers with surprises and excitement. The charming lineup of Shop Channel, which cannot be seen anywhere else and exceeds customers’ imaginations, is the source of the channel’s fun and joy.

Because customers are unable to try out the products, the cast’s ability to gain the viewers’ appreciation for the products and motivate them to purchase the products within an hour determines revenue. Thus, when choosing products more than half a year before they are presented, the company heavily researches what value the product can provide to the customers. We do not only look at specifications, but we also think about how this will enrich customers’ daily lives and turn it into a television production. Keeping this in mind, the manufacturers, buyers, and production staff thoroughly discuss how to show and communicate the product and share their thoughts with the sales producer, cast, guests, camera crew, and broadcasting staff who come together as one to present the product in real time. That is this job’s appealing point.

No two programs are the same, and each show is a one-time chance. It is precisely because we take this challenge seriously that, when we get a bigger reaction than expected, the staff applaud and the guests are sometimes moved to tears right after the broadcast ends. It is these moments that make the job worth it. I want to continue to work together with the professional staff to devise a way to deliver not only shopping opportunities but also fun and entertaining experiences through live broadcasts.

Keyword3
An e-commerce website that reaches a new fan base

Osamu Kishiyama

Shop Channel is also operating a shopping website. The website has online program broadcastings, broadcast schedules, product summaries, and video shorts. Shop Channel’s website is unique compared to other e-commerce websites because it thoroughly introduces the background and story of each product as well as the passion of the people involved.

The website was originally designed to supplement the television broadcasts, but we then launched the Shop Channel People section to add new value. Guests and brand staff that appear on the show and Shop Channel employees try out apparel and accessories and share their honest opinions. The section is praised for making it easy to imagine wearing the products and for being a good resource for coordinating outfits. The common desires of those who model on the website are to help customers have fun dressing better and to contribute to Shop Channel. I believe the passion of each and every model is what makes the site appealing.

This website is currently being accessed a few tens-of-thousands times a day, and we are contemplating measures using the abundance of data gathered through it. Specifically, we are establishing a system that promotes recommendations and advertisements that are highly accurately geared toward customer likes and needs. First, we will make the e-commerce portions of the site sufficiently more appealing compared to other e-commerce websites. Then, we will leverage our strengths in programming and product development to demonstrate even greater superiority. We are getting ready to start this process.

Using new digital methods, we aim to help customers find exciting products they have never seen before, raising awareness of the website and establishing it as the top e-commerce platform.

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