Homeshopping in Slovakia

2020 IMPACT

COVID-19 benefits homeshopping, a sales channel relied upon mostly by older generations

Value sales through the homeshopping channel continued to decline in 2020. The decline in 2020 was lower than in previous years, however.

E-commerce players are growing competition for homeshopping, leading to negative growth in the landscape

The main competition for homeshopping in Slovakia is posed by internet retailing, which is, to a large extent responsible for the channel’s decline. With growing e-commerce ubiquity, homeshopping operators have to face new competitors - not only the big players of e-commerce but also a wide variety of specialised e-commerce shops.

Studio Moderna continues to lead with Top Shop, adapting its business model to focus on its e-commerce presence 

RECOVERY AND OPPORTUNITIES

Homeshopping is unlikely to see a recovery in value sales as consumers prefer other forms of retail

Homeshopping is not anticipated to see a recovery in value sales over the forecast period. The sales channel lost its competitive advantage with the proliferation of international brands and ubiquity of products across all product areas.

Players take a multichannel approach, increasing consumers opportunities to buy and pushing businesses forward 

Traditionally, selling products on TV used to be the core business of homeshopping; however toward the end of the review period, e-commerce had become an increasingly important sales channel. The trend in e-commerce sees players increasing their investment online, which is seen to be more convenient for consumers, especially as it is available 24/7.

Homeshopping channels increasingly become marketing tools for selling online or instore 

While phone calls are still the main method of ordering products for customers for leading shopping operators, for multichannel operators, direct response television shows and infomercials work mainly as marketing platforms for in-store and retail sales. E-commerce and mobile commerce have gained more and more sales share, with this shift expected to continue as further sales channels such as social media platforms and smart devices will grow an existing portfolio.