Berlin, March 4, 2013. TV shopping channels in Europe have developed into modern multi-channel providers. The active providers in the core European markets of Germany, the UK, Italy and France currently generate an annual turnover of almost 4 billion euros. Strategy consultant Goldmedia (http://www.goldmedia.com) predicts an increase to 5.3 billion euros by 2017.
These are the results of the study “The Future of TV Shopping – Key trends and market forecasts to 2017 in France, Germany, Italy and the UK”, conducted by Goldmedia on behalf of the European Retailing Association – ERA. Furthermore, the study examined various shopping areas such as classic live shopping, auction television, DRTV (Direct Response TV) and travel shopping.
Germany leads ahead of the UK – Italy with the highest growth potential
A total of 68 providers in the examined TV shopping markets of Germany, the UK, Italy and France reached a turnover of about 3.8 billion euros in 2011. Recording 7,000 employees and a turnover of around 1.7 billion euros (2011), Germany is the largest TV shopping market in Europe. According to the study, the turnover will continue to increase by 6 percent to 2.4 billion euros in 2017.
The UK, being the second largest TV shopping market in Europe, offers the greatest supplier variety: 31 providers with about 5,500 employees generated an annual turnover of 1.4 billion euros in 2011. In this section, more than half of the total turnover was achieved by e-commerce. In contrast to Germany, the TV shopping market in the UK is already highly saturated.
Italy has the highest growth potential in the European TV shopping market. An annual turnover increase by 13.6 percent from 420 million euros in 2011 to 905 million euros in 2017 is expected, particularly through ongoing digitization. The French market, however, with a turnover of 230 million euros in 2011 and a growth rate of only about 2 percent per year, is comparatively small and its development is rather static.
TV remains main distribution channel, but online and mobile increasingly important
TV is still the most important TV shopping medium, the telephone being preferred for product purchases. While in 2011 the share of revenues generated from TV in the four markets examined was 68 percent in total, this share will be merely 50 percent in 2017. In contrast to this, the Internet, social networks, smart TV and mobile apps gain further in importance being distribution and communication channels. Due to the rapid spread of smartphones and tablet PCs, the growth rates of e-commerce are rising particularly. While this share was only 26 percent in 2011, more than one third of the revenue (37 %) from the analyzed TV shopping providers will be generated on the Internet by 2017.
CHART 1 – Growth of revenues in TV shopping in Europe from 2011 to 2017
Source: “The Future of TV Shopping – Key trends and market forecasts to 2017 in France, Germany, Italy, and the UK”, Goldmedia / ERA 2012
The study “TV Shopping in Europe” was originated on behalf of the European Retailing Association – ERA in 2012. Initial core results were presented at the ERA annual conference in June 2012 in Berlin. The complete study was published in January 2013. In the study the development of the four major European TV shopping markets: Germany, France, the UK and Italy were analyzed. The report provides an overview of use, market conditions, business models and market players and predicts the developments in each country until 2017. Furthermore, the study detects trends in TV shopping such as smart TV, video shopping or shopping via social media and mobile apps.
The study is available in English and can be ordered at: http://www.goldmedia.com, Katrin.Penzel@Goldmedia.de
Since 1998, Goldmedia has provided national and international clients with high-quality consulting and research services in the fields of media, entertainment and telecommunications. Goldmedia offers: in-depth analyses of markets and competitors; forecasts and strategic consulting services; the implementation of new business models; and consulting for restructuring whole companies, including M&A processes in the field of corporate finance. Further information: www.Goldmedia.com
Die Goldmedia GmbH Strategy Consulting berät seit 1998 nationale und internationale Kunden im Medien-, Entertainment- und Telekommunikationsbereich. Das Serviceangebot umfasst klassische Strategieberatung, M&A sowie Business Development und Implementierung, wie auch klassische Markt- und Wettbewerbsanalysen, differenzierte Prognosen und Hochrechnungen. Goldmedia bietet neben Strategieberatung auch Beratung im Bereich Innovationsmanagement, Social Media, Politik und Personal sowie Usability und Medienresonanz an. Weitere Informationen unter: www.Goldmedia.com
Dr. Katrin Penzel
Oranienburger Str. 27
Dr. Katrin Penzel
Oranienburger Str. 27