One of the Pakistan’s most well-known media group, Hum Network Ltd is hoping to make a mark with its new new business venture in an entirely different field. The TV network is planning to roll out its ecommerce operations, with HUM Mart (Pvt), its online grocery company.
HUM Network’s board of directors, in their recent meeting has decided to incorporate a company that will be operate as a subsidiary, a notification to Pakistan Stock Exchange stated.
Online Shopping Continues to Boom
Business to consumer or E-Commerce (e-B2C) is on the rise in Pakistan. Growing incomes, coupled with advancement in communication technology and expansion of internet access and branchless banking, has been propelling the sector forward.
E-commerce is considered in its growing stage and estimated to touch $1 billion as market value by 2020 in Pakistan. In this regard, the government is working to set up an E-commerce gateway to facilitate and boost this sector throughout the country.
Businesses are venturing into digital platforms to increase their reach in the targeted market. This business model benefits from low operating costs and flexibility in inventory management (based on feedback, recommendation, and just-in-time mechanisms), which results in increasing margins.
According to State Bank of Pakistan (SBP), nearly 571 local e-commerce merchants are already accepting payments through banking channels as of end-June 2017, with cumulative annual sales worth Rs 9.8 billion. In addition to that, transactions worth Rs 20.7 billion were carried out by consumers on international e-commerce websites.
This is an encouraging trend as it provides a potential to document transactions that would otherwise not become part of the formal retail segment.
HUM Network Profits Cross Rs 500 Million Mark
HUM Network Ltd, one of the two listed media organizations, has made a record profit of Rs 536 million in the first half of the financial year 2017-18. This is the first time the media organization achieved this mark in this time period.
The company earned a total revenue of Rs. 2.69 billion in the period of July to December through its drama serials and various TV shows. Its total expenditures included Rs.1.596 billion as the cost of transmission and production, in addition to administrative cost of Rs. 357 million.
Overall, the group is progressing gradually not only in operations and business but in its balance sheet as well.
HUM Network’s Expansion
The group is not only preparing to set up an online grocery company but it is also in the final stages of launching its news channel, HUM News, in the next few months. For this, hiring of news staff and production team has almost concluded in all major cities.
Last year, the group also acquired majority shares for the renowned monthly magazine, Newsline, which is being run under the previous management effectively.
According to its website:
HUM Network Limited is operating various channels so far including HUM TV, HUM Masala, and HUM Sitaray. HUM News is likely to replace HUM Sitaray in future.
The media group also owns three magazines of different genres.
- Glam – Showcasing the latest trends and teaching its readers how to assume a distinctly chic and modern appearance.
- Masala Tv Food Mag- quality home cooking for the people who love to eat and cook.
- Newsline Magazine – socio-political magazine for the readers.
Masala TV also launched a series of Chef books featuring some of the most sought-after recipes of celebrity chefs. Besides this, Bridal Couture Week catalogs were also introduced to showcase the latest bridal collection of designers.