Guthy-Renker Corp. plans major marketing effort in Asia

Public Record, The, Jun 05, 1998

PALM SPRINGS--Palm Springs-based infomercial maker, Guthy-Renker Corp., plans a major marketing effort in Asia. Company officials announce it has allied with a Japanese firm to market its services in the Pacific Rim.

A Japanese company, Nissho Iwai, purchased minority interest in Guthy-Renker for an undisclosed amount. Nissho Iwai is a conglomerate with interests in multi-media, manufacturing and investments.

Guthy-Renker is a leader in direct response television marketing. It is the largest privately held company of its kind in the world with annual sales of $350 million.

Nissho Iwai is one of the 15 largest companies in the world, with annual sales in excess of $71 billion. It is the founder and investor of the first direct-to-home satellite broadcasting service in Japan.

It also owns communications satellites and cable television outlets. This gives Guthy-Renker access to new Asian audiences to market its infomercials.

Initially, program topics including fitness, auto mechanics and household items will be marketed, using Japanese subtitles. However, the company intends to do Japanese language infomercials in the future, according to spokesman Eytan Urbas.

The alliance is seen as an attempt to brink modern marketing techniques to Asia. It is believed it will help both Nissho Iwai market its products and help Guthy-Renker make the leap into the world market.

The Asian market has 400-million television households, presenting a tremendous marketing opportunity for American and Asian products. Guthy-Renker's infomercial experience is seen as a natural to exploit this potential market.

Greg Renker said the present Asian currency crisis is not expected to impact the marketing. He said both he and Nissho Iwai officials believe Asian consumers are eager to shop via television, despite the region's money woes.

Nissho Iwai spokesman Shintaro Hirata agrees. He says the marketing campaigns the alliance will develop, "should prove to be resistant to any environment of economic instability."