Homeshopping in Israel

2021 DEVELOPMENTS

Homeshopping continues to lose relevance as a sales channel in Israel

Homeshopping was losing sales prior to the pandemic in Israel due to the increasing popularity of e-commerce, which many local consumers deem to be more convenient. Consumers are now more educated and sophisticated; they often seek product information online and/or through visits to bricks-and-mortar stores when considering products to buy.

Short-lived marginal improvement in sales during home seclusion

Home seclusion in 2020 led to a marginal improvement in overall value sales for homeshopping compared to previous declines, as older consumers who are not as familiar with online platforms turned to homeshopping for entertainment and an alternative purchasing solution as they were less likely to leave their homes due to concerns over exposure to the virus.

Globes Group retains leadership of fragmented competitive landscape

Despite declining value sales in 2021 in line with homeshopping’s overall performance, Globes Group, with its TV channel 21TV, remained the convincing leader of homeshopping in Israel. The channel is dominated by smaller independent players under “others”.

PROSPECTS AND OPPORTUNITIES

Homeshopping to continue on declining trend over the forecast period

Although homeshopping was especially convenient for older audiences at the height of the pandemic, this is not expected to positively impact the channel’s growth trajectory over the forecast period, with overall value sales (at constant 2021 prices) set to continue to decline as it loses further relevance due to an outdated image.

E-commerce to gain further share from homeshopping

As online platforms continue to rise in popularity and reach a wider audience, they are likely to continue to gain share from homeshopping. This is mainly due to a decline in this channel’s relevance for local consumers, with an increasing number of Israelis 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.