Homeshopping in Israel

2020 IMPACT

Homeshopping continues to decline in relevance amongst domestic consumers in 2020

The popularity of homeshopping peaked in the 2007-2008 period and since then the channel has seen a steady decline in current value sales. Israel’s homeshopping channel was based on the model that operates in the US, but upon launch in Israel homeshopping was not adjusted enough to accommodate the needs and tastes of domestic consumers, particularly in regard to the variety of products the channel has on offer and the channel’s unique approach to marketing.

Homeshopping’s inconsistent product portfolio often confuses consumers

Many consumers find the product portfolios presented in the homeshopping channel to be unappealing. Products tend to be drawn from a wide variety of seemingly unrelated categories, and the product selection often seems to be random with frequent changes.

Globes Group remains the primary player in homeshopping in 2020, while homeshopping channel remains highly fragmented

Despite declining value sales, Globes Group, with its TV channel 21TV, remained the leader in homeshopping during the review period. Globes Group repeated that achievement in 2020 with approximately a third of the channel’s value share.

RECOVERY AND OPPORTUNITIES

Homeshopping likely to continue declining over the forecast period partly due to other channels offering a wider variety of products

The homeshopping channel is expected to continue declining in value sales at constant 2020 prices over the forecast period. This is mainly due to a decline in this channel’s relevance for consumers and an increasing number of consumers turning to e-commerce and other more attractive channels that allow them to choose from a wider range of products and to compare product features and prices more easily.

Increasing e-commerce sales likely to lead to consumer base of homeshopping decreasing

During 2020 many consumers turned to e-commerce as a considerable number of Israelis worked from home and eschewed brick-and-mortar stores to keep themselves safe from COVID-19. Consequently, many consumers who had not tried online shopping before realised that it is a simple and convenient channel and are likely to use it in future.

Competition from e-commerce intensifies

The number of e-commerce sites and mobile e-commerce options continues to grow, offering consumers greater access to lower prices and more convenience. The growth of e-commerce has put particular competitive pressure on players in the homeshopping channel, particularly as homeshopping does not deliver a low-cost solution for budget-conscious consumers or a time-saving solution for busy consumers.