South Korea’s Hyundai Home Shopping Network is investing $45m in Australia to establish Australian Home Shopping, which is trading as openshop. The business operates on TV channel 75, its new app and at openshop.com.au.
Earlier this month at its Sydney Studios in the building also occupied by Seven and NEP Australia, openshop held a launch event.
The lavish party was attended by Sunrise co-host David Koch, Home and Away stars Jake Ryan and Courtney Miller, Brendan “Jonesy” Jones from WSFM and Seven executives to help celebrate their new partnership with openshop.
Guests were treated to French champagne and a selection of canapes. The intimate gathering heard from the president of Hyundai Home Shopping Chan-Suk Kang, Kylie Bell from the NSW Government and the commercial director of Seven Network Bruce McWilliam.
The managing director of the Australian business, Jason Kim, told Mediaweek the reaction to openshop has been “amazing” since they launched.
“Australian shoppers are appreciating our service. It is much more convenient for them to shop online and we offer them free express shipping. We will be a very competitive online retailer in Australia.”
Parent company Hyundai Home Shopping is an affiliate of the Hyundai Department Store Group and has been in the sector for 19 years, launching first in Korea. Kim: “Our retail group started with a department store and then expanded to online and TV home shopping. We have grown very quickly and coming to Australia is a very good opportunity for us.”
Hyundai Home Shopping has sent their best to launch the Australian business. Kim has been with the company since 2001, working in the department store and the home shopping division.
Hyundai Home Shopping trades in a number countries including Korea, Singapore, Thailand and Vietnam – Australia is its first English language market. Kim explained there are many home shopping competitors in the Korean market, but they are the first to enter an English-speaking territory.
“We have decided to make an investment in Australia because of three basic elements – Australia has a very advanced financial system, good logistics system for deliveries and the average income is very strong too.”
Meeting all these criteria means it is the perfect place for home shopping to be adopted, said Kim.
The company has ambitions to be a big retailer in Australia, but realises it will take time for people to change their spending habits. “But we think many people are ready to change to online retail.
“Australian shoppers deserve better service for what they are spending,” said Kim.
Openshop was more than happy to partner with Seven for its TV channel. “Seven is the most-watched network in Australia” is the answer to why it chose Seven. “We are not just renting a channel, we are a real partner,” Kim added.
Openshop tries to trade with the manufacturer where possible for what it sells, otherwise it is happy to engage with a wholesaler. “Unlike some other companies, we are here to support Australian grown and produced products. We are finding a lot of products don’t have any medium for them to advertise to customers.”
“Because we can work with manufacturers we are able to offer attractive prices to the customers.”
Openshop plans to offer a wide range of products, not just jewellery or cosmetics. which Kim said is the perception some have about home shopping.
Top Photo: David Koch and openshop presenters