Public Home Shopping Taking a Leading Role in Introducing a “Fair Economy Model for TV Home Shopping”
- Division
- International Cooperation Division
- Date
- 2019.07.15
- Writer
- 황승현
- Headline
The Ministry of SMEs and Startups (Minister Park Young-sun, hereafter “MSS”) and the Public Home Shopping (President Choi Chang-hee) announced the “Home Shopping Fair Economy Model” to proliferate the fair trade culture where the home shopping industry actively seeks a way to share benefits with SME partners.
Most of all, the Public Home Shopping will scrap flat-rate commissions and introduce a system to charge fixed-rate commissions for purchases, which will help to fundamentally solve the problem of unfair deals regarding commissions.
In the case of the flat-rate system, a supplier should burden all the risk of failing to sell. When the fixed-rate system is applied, a home shopping operator and supplier share the risk.
In addition, a system to “guarantee three times of broadcasting sales” will be introduced for the companies that start sales through a home shopping channel for the first time. Currently, the home shopping industry decides whether to provide an additional opportunity of broadcasting to its partners depending on the first performance, increasing the burden of stocks laid on them.
This system is planned to lessen the burden as well as facilitate SMEs’ entrance to the home shopping market.
Transparency of the process to start sales will also increase the fair opportunity to be given from the beginning to the outcome of broadcasting sales.
Based on the product evaluation criteria published in the home page, the application is made for launching online sales, and the evaluations of the MD team and customer product appraisal board are conducted to finally decide whether to issue the qualification. The reasons for disqualification as well as qualification are provided. Moreover, opportunities are given for the reapplication of disqualified products if they go through a supplementary process.
Most of all, the Public Home Shopping will scrap flat-rate commissions and introduce a system to charge fixed-rate commissions for purchases, which will help to fundamentally solve the problem of unfair deals regarding commissions.
In the case of the flat-rate system, a supplier should burden all the risk of failing to sell. When the fixed-rate system is applied, a home shopping operator and supplier share the risk.
In addition, a system to “guarantee three times of broadcasting sales” will be introduced for the companies that start sales through a home shopping channel for the first time. Currently, the home shopping industry decides whether to provide an additional opportunity of broadcasting to its partners depending on the first performance, increasing the burden of stocks laid on them.
This system is planned to lessen the burden as well as facilitate SMEs’ entrance to the home shopping market.
Transparency of the process to start sales will also increase the fair opportunity to be given from the beginning to the outcome of broadcasting sales.
Based on the product evaluation criteria published in the home page, the application is made for launching online sales, and the evaluations of the MD team and customer product appraisal board are conducted to finally decide whether to issue the qualification. The reasons for disqualification as well as qualification are provided. Moreover, opportunities are given for the reapplication of disqualified products if they go through a supplementary process.