This photo provided by CJ OnStyle shows the company’s digital studio.
SEOUL, June 7 (Korea Bizwire) — South Korea’s home shopping industry, grappling with poor sales performance due to a decline in television viewership, is incorporating high-end digital technology to attract customers.
CJ OnStyle replaced all four of its studios with a digital studio in February, aiming to enhance the customer viewing experience through interactive video content.
During a recent home shopping program promoting a South American travel package, the studio transformed its background to reflect various travel routes, providing viewers with the sensation of embarking on an actual tour across the continent.
The following day, in another home shopping program advertising a cruise ship package, the studio converted into a virtual deck, offering customers a realistic experience of boarding a cruise ship.
The South American travel package received 1,534 phone calls (27.5 billion won, US$21 million) on the day of the show, while the cruise ship package generated 1,371 phone calls (14.9 billion won).
Meanwhile, GS Shop introduced a 22-meter wide, 3.6-meter tall LED media wall in its second-largest studio in July last year.
Lotte Home Shopping also operates a virtual studio incorporating augmented reality (AR) technology on a media wall.
Lotte Home Shopping’s media wall is seen in this photo provided by the company.
A key advantage of a digital studio is its ability to overcome physical space limitations and provide tailored stage designs for showcasing various products.
This effort has resulted in significant sales performance improvements.
Home shopping programs conducted at GS Shop’s digital studio from August to last month achieved sales performance that was 7-10 percent higher than the company’s three other studios.
In March, Lotte Home Shopping recreated New York’s Soho Street using AR technology and a media wall to launch sales of Derek Lam 10 Crosby. The company sold over 100,000 fashion products in just three shows.
With the sales boost and digitalization of the studios, the annual cost of stage production has been reduced by more than 10 to 20 percent, saving over 50 percent of the time spent preparing for each show.
“Given the declining number of television viewers each year, it has become crucial for home shopping channels to not only provide the shopping experience but also deliver an entertaining show,” said an industry source.
Ashley Song (ashley@koreabizwire.com)
