Media Prima has acquired the remaining 49% stake in CJ Wow Shop from South Korean Entertainment company CJ ENM, as part of its plan to tap into the strong prospects of the home shopping and eCommerce industry.
“The Group, via Sistem Televisyen Malaysia, acquired a 49% stake in MP CJ ENM from South Korean entertainment company CJ ENM. The acquisition supports Media Prima’s plan to grow the commerce segment further,” Media Prima said in a statement. CJ Wow Shop posted a net profit of RM6.3 million during the first half of 2020 (H1 2020), reversing a net loss of RM7.6 million during the same period last year.
The turnaround was achieved on the back of a 34% increase to RM152.8 million in H1 2020 revenue, which included higher sales from its eCommerce and mobile commerce platforms. Media Prima and CJ ENM entered into a joint venture in February 2016 to roll out the home shopping company, which enabled the former to tap on the expertise of CJ ENM to build the infrastructure needed to operate. According to Media Prima, its large broadcast reach – over 35% of total audience share – has served as one of the key drivers to the success of its home shopping segment. CJ Wow Shop also leverages the group’s overall mass reach and digital capabilities to target audiences with data-driven content and to strategically plan airtime and products.
Iskandar Mizal Mahmood (pictured), group MD of Media Prima, said having built the brand and with key infrastructures in place, it has achieved the primary objectives of the joint venture.
“We are confident that critical knowledge and know-how of the business have been fully achieved. CJ Wow Shop has been and will continue to be one of the key growth areas for the Group. Looking at its performance in previous years and in the last few months, we are fully confident of the potential of this segment,” he added.
Yang Hyun Kim, CEO of MP CJ ENM, said CJ Wow Shop has become a successful household commerce brand since it was established four years ago and today, it has a strong presence on both broadcast and digital platforms.
“We will continue to build on the success of CJ Wow Shop using the expertise and infrastructure gained, and through its established network of merchandisers. We will also continue to utilise local talents that we have trained for both its broadcast and logistic operations,” he added.
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