Guthy-Renker targets a billion new consumers as first major U.S. electronic retailer to enter China.
PALM DESERT, Calif.--(BUSINESS WIRE)--Dec. 10, 1996--
First month's supply of product sells out
in 20 minutes on Shanghai TV
Having gained access to various Chinese goods since the inception of direct television (DRTV) 11 months ago, the world's most populous country has proven its desire for Western products following the launch last week of programming by Guthy-Renker, one of the world's largest TV response-driven companies.
Within 20 minutes of its debut on Shanghai Television, Guthy-Renker's inventory of PowerRider was met with a buying frenzy, resulting in the depletion of its entire first month's supply.
The venture, the only exclusive relationship between an American infomercial marketer and a Chinese Television station, was accomplished through a groundbreaking alliance with the Chinese Ministry of Radio, Film and Television (MORFAT) and an association with The Geneva Companies, a global consultancy which links corporations with Chinese ministries, commissions and enterprises.
Among the nation's eight main television stations, operated by China Central Television, Guthy-Renker programming will be broadcast by half of them by January. Initial response has exceeded expectations: Shanghai Television, one of the largest terrestrial stations in China, was forced to add an additional 20 telemarketing operators to handle the first days' flow of calls. Following the launch on Shanghai Television, the company will broaden its roll-out to stations in the cities of Dailan, Guang Dong and Tianjin.
"This venture represents the most ambitious and significant DRTV launch in China, a country clamoring for all things American," said Greg Renker, co-principal of Guthy-Renker. "We are fully aware of the challenges involved in reaching the Chinese market, and we are fully committed to the evolution and growth of this market."
Those challenges include reaching a country with few household telephones and few other consumer conveniences. The company's products will initially be available only by cash or C.O.D. and will be delivered by privately commissioned taxi companies, according to Renker.
In preparation for the launch, Guthy-Renker spent months establishing its corporate infrastructure in Beijing and stocking warehouses in the country's northern and southern regions. The company's investment comes in recognition of the communist nation's untapped potential; of 255 million of the world's 820 million TV households are in China.
