Home shopping companies are bringing their own beverages and health supplements beyond television. Lotte Home Shopping and NS Home Shopping have recently strengthened their wellness private brands (PB), while GS Shop and CJ OnStyle are expanding their product lines and offline sales networks. This shift is seen as a response to the shrinking TV home shopping market, aiming to secure new revenue sources and broaden customer engagement.
According to industry sources on September 6, Lotte Home Shopping plans to expand the distribution of its self-developed beverage brand 'L:Bottle' with its first product, 'Spike Zero,' into department stores and convenience stores. Developed from employee ideas, Spike Zero contains banana leaf extract, known to help suppress blood sugar spikes.
In January, the product sold approximately 10,000 bottles through the crowdfunding platform Wadiz, achieving 4000% of its target. It has since expanded its online sales through platforms like Coupang, Kurly, and Naver, with monthly average orders increasing by 70% since its launch. After entering the exclusive VIP 'Black' lounge at Lotte Department Store's main and Jamsil branches in April, it has further expanded to Avenue L lounges and food halls across Lotte Department Stores. Next month, it will also be available at Seven-Eleven and the wellness curation platform 'Olive Better.'
NS Home Shopping is also expanding its wellness PB. On August 20, it launched six health supplements under the PB 'N-Well' and began sales on NS Mall from August 24. N-Well targets everyday health management needs, including blood circulation, memory, eye health, blood pressure, and blood sugar. The sales network is also expanding beyond home shopping, with five N-Well products set to be sold at 124 Homeplus Express stores starting September 7. Additionally, it will enter overseas markets through the Hong Kong-based distributor 'Haninhong.'
CJ OnStyle has been developing wellness products for some time. Its 'Ohharu Natural Full' brand, launched in 2014, surpassed 200 billion won in cumulative orders as of January this year. As of the end of August, it has 400,000 repeat customers. The flagship product, 'Seoritae Millstone Soy Milk,' has sold 43 million packs since its launch in 2019. CJ OnStyle is strengthening its wellness food business, including a complete overhaul of this product after seven years.
GS Shop is also expanding its health supplement PB 'Simple Bio.' Launched in 2022 in collaboration with a health supplement company, Simple Bio has broadened its product range to include vitamins, magnesium, and eye health products. Since June, eight of its nine products have been sold at GS The Fresh supermarkets. In the second quarter of this year, the expansion of its own and exclusive products, including Simple Bio, was cited as a factor in GS Shop's improved performance.
The strengthening of private brands by home shopping companies is linked to the growth limitations of their TV-centric businesses. According to the Korea TV Home Shopping Association, the total transaction amount of seven TV home shopping companies last year was 18.5053 trillion won, a 5.1% decrease from the previous year. Broadcast revenue also fell to 2.6181 trillion won, the lowest level since 2012, with broadcast fees accounting for 73.4% of revenue.
An industry insider stated, "Wellness products are suitable for home shopping companies to grow their PBs as they can expect repeat purchases. As the growth of the TV home shopping market slows, the importance of securing differentiated private products and expanding external sales channels will increase."
* This article has been translated by AI.
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