RM70mil venture expected to generate RM500mil in annual revenue over 5yrs
115K+ products already ordered since Nov 1 soft launch
ASTRO Malaysia Holdings Bhd has announced a joint venture with South Korean multimedia retailer GS Home Shopping Inc which has launched Go Shop, a new 24-hour shopping service available on Astro TV (Channel 118), Astro On The Go, as well as web and mobile platforms.
Go Shop is Astro’s first foray into e-commerce, the company said in a statement. It follows other big names such as Philips and Celcom which have also formed e-commerce partnerships over the last year.
The total capitalisation of the joint venture company is RM70 million (US$19.3 million), and it is expected to generate RM500 million (US$138 million) in annual revenue over five years, Astro said.
The joint venture “allows us to diversify our business and tap into a growing global industry that is projected to be worth RM3.6 billion (US$990 million) in Malaysia by 2020, with online shopping on a rising trend,” said Astro chief executive officer Rohana Rozhan.
“Our chosen strategic partner of choice is one of Asia’s leading homeshopping business with a proven track record of over 20 years.
“Complement that with Astro’s readily available state of the art infrastructure like our broadcast facilities, call centre, channel platforms and production studios, and we have the right expertise and best-in-class capabilities to serve Malaysians and to make this venture a success,” she declared.
Astro said Go Shop will be a strong growth catalyst for future earnings growth, as it taps into a readily addressable market of 4.3 million homes and 17 million consumers.
Rohana said Astro is committed to building “an end-to-end best-in-class experience in e-commerce, from a home shopping channel, to Astro On The Go, online and mobile platforms to the right products, the right pricing, and the right supply chain logistics, as well as an Astro Payment Gateway that facilitates multiple payment options.”
GS Home Shopping chief executive officer Huh Tae-Soo said that Malaysia, as GS’ seventh international market, “will benefit from decades of managing and fine-tuning a successful and proven retail model.”
Since Go Shop’s soft launch on Nov 1 2014, over 115,000 products have been ordered to date, Astro said. Currently, 60 products are available, with plans to double this within a year.
Customers can call the 24-hour Go Shop toll-free number 1800-82-0088, or visit www.goshop.com.my to place their orders.
Delivery times range from between two and five working days nationwide, and multi-payment options are available including locally issued credit and debit cards, Easy Payment plans, online bank transfers and cash on delivery.
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