topic Re: Good News For QVC And HSN...I Think. in Community Chat

Good News For QVC And HSN...I Think.

Foxxee — Mon, 05 Apr 2021 11:28:46 GMT

This from Forbes dated March 29, 2021

Amazon, Facebook, TikTok and a growing number of venture-backed startups are all seeking to replicate QVC's success selling stuff via live demos and time-pressured promotions. But the original home shopping is still way ahead—for now.

In March, a year into the pandemic, QVC is pitching a predictably eclectic assortment of items. A set of three collapsible storage boxes for $33, perfect for the springtime ritual of clearing away clutter — 28,000 sold! A pink amaryllis bulb for Easter – yours for three payments of $10.89! An “ingenious” planter in the shape of a frog — only 500 left!

Hardly the essentials needed to endure a lockdown, but it’s made for brisk business for QVC and its sister channel HSN, which now reach into 380 million homes worldwide and continue to find a massive audience for its sales pitches that push everything from mattresses and mops to cooking supplies and jewelry.

Last year, the two channels—plus a handful of smaller clothing and home décor brands—delivered revenue of $14.2 billion for publicly-traded Qurate Retail. QVC has been around for 35 years but has suddenly become the company to beat in the industry’s new fervor for live shopping.

Amazon, Facebook and TikTok are in hot pursuit, along with a number of venture-backed startups. Walmart wants in too, as do Macy’s, Nordstrom, Urban Outfitters, Wayfair, Estee Lauder, Tommy Hilfiger and Levi Strauss, all of whom have begun to experiment with the approach as a way of reaching shoppers who are staying at home—and may never come back.

“They are more relevant now than ever,” says Neil Saunders, managing director of GlobalData Retail, of the two channels born at the dawn of the cable-TV era.

Livestream shopping, the internet-era name given to programming that leans heavily on lively demos, time-pressured promotions and real-time interactions with shoppers, is set to grow four-fold to $25 billion in the U.S. in the next two years, according to Coresight Research. And that’s nothing compared to what’s happening in China, where data firm iResearch expects consumers to spend $300 billion on livestream purchases this year, about 15% of the country’s total online sales.

Qurate, with 22 million active customers, is the largest in the U.S. by far and still growing, adding 7.6 million new shoppers during 2020. Shares of Qurate, which is controlled by cable billionaire John Malone, have delivered total returns of 300% in the past 12 months.

“The world is shifting to what we do,” says Qurate CEO Mike George, who is set to retire at the end of the year. “As we see others copy what we do, it motivates us to move that much faster to expand our leadership.”

Qurate Retail CEO Mike George wants viewers to feel like they are having a conversation with a neighbor over the backyard fence, a concept established during the company's early days.

While most livestreamers are still fumbling for footing, QVC is a well-oiled machine that has already won over millions of bargain-hunting, middle-aged women, who buy an average of 26 items every year at a cost of $1,335, an enviable advantage.

Big tech is still in the trial-and-error phase. Amazon’s first effort, “Style Code Live,'' was canceled in 2017 after a year. The online behemoth has since revamped the strategy to allow brands and influencers to host their own livestreams, which run throughout the day on the Amazon Live page.

Last year, Facebook began making it easier for small businesses to sell products during livestream sessions, while TikTok is running tests with Walmart. A pilot event in December attracted seven times more viewers than it anticipated, prompting a second livestream earlier this month.

A rash of copycats has also emerged, with ambitions of overtaking the incumbent with a slicker, more digitally savvy version geared toward young shoppers. “I love it,” says George, who keeps a thick file of stories about companies purporting to be the “new QVC.” Most of them failed. “It’s good to be talked about.”

If any of them do gain traction, they could threaten the value of that 380-million home reach. That’s why George has embraced streaming services like YouTube TV, the company's own branded websites and mobile apps, as well as social media. He’s now testing 15-second spots on TikTok and on-demand content like a 30-minute show where celebrity chef Curtis Stone travels to far-flung destinations to sample local cuisine.

The world is shifting to what we do. As we see others copy what we do, it motivates us to move that much faster to expand our leadership.
Mike George, CEO of Qurate Retail

George won’t disclose how many orders still start with a customer tuning in through their television, and instead points out that QVC and HSN are now mostly digital businesses, with about 60% of their revenue coming from online sales and two-thirds of those purchases made from mobile devices. Still, sales rose just 5% in 2020, hardly the numbers posted by a game-changing growth business.

“The people that watch QVC and HSN and buy stuff on there woke up that morning and didn’t know they needed a pan or makeup or whatever it is,” says Evercore ISI retail analyst Oliver Wintermantel. Its biggest problem? An aging audience.

That’s what led QVC to pay $2.4 billion for flash sales site Zulily in 2015, giving George a brand that also relies on time-pressured promotions but is popular among moms with young children. He also ramped up the marketing budget for QVC and HSN to $170 million last year, with a focus on social media ads and partnerships with influencers.

George says he’s got the problem in hand, but not because he believes that youth is the future. Gen Z shoppers lack the disposable income, hobbies and life experience to be interested in what he’s selling. “We’ve never worried a whole lot about being cool,” he says. Instead, he sees plenty of runway left for his core audience of women 35 and older.

His bigger worry is becoming a showroom for Amazon. That’s led to exclusive merchandise deals, both with emerging entrepreneurs like IT Cosmetics founder Jamie Kern Lima and celebrities like Katy Perry, Martha Stewart, Jaime Foxx and HGTV’s Property Brothers, who are drawn to the company’s massive reach.

One of those lines was with plus-sized model Hunter McGrady, the curviest woman ever featured on the cover of the Sports Illustrated Swimsuit Issue, who watched QVC with her mom growing up and debuted a clothing line with the channel last year.

She worked with the in-house design team to create a line of hoodies, joggers and cardigans in sizes XXS to 5x, then began going on-air to walk customers through the story behind each piece. Doing it live she can demonstrate how the clothing moves on her body.

On one segment, the 27-year-old explained how she created a ruched tank top because she could never find one that sufficiently covered her backside. She has sold 155,000 units since launching last April, most to customers she never would have reached on her Instagram page.

“I think what a lot of livestream shopping folks miss is they’re trying to sell you something in the moment with technology, a flashy influencer and slick production values,” says George, who says his viewers often watch hours and hours of programming before springing for a purchase.

“They’re not establishing any connection, relationship or intimacy with you. They’re not enticing you to come back tomorrow to discover something new. That is the magic of what we try and do.”

Link to Forbes

Where QVC Is Still Way Ahead Of Amazon (forbes.com)

Re: Good News For QVC And HSN...I Think.

aroc3435 — Mon, 05 Apr 2021 11:27:17 GMT

@Foxxee Fascinating article. Thank you for posting it.

aroc3435

Washington, DC

Re: Good News For QVC And HSN...I Think.

on the bay — Mon, 05 Apr 2021 11:31:49 GMT

Veru interesting!

(and a lot more flattering than "lonely old ladies")!

Re: Good News For QVC And HSN...I Think.

millieshops — Mon, 05 Apr 2021 11:41:00 GMT

@Foxxee Very interesting. And in Forbes, no less. Thanks for sharing

Re: Good News For QVC And HSN...I Think.

Oznell — Mon, 05 Apr 2021 11:58:50 GMT

Thanks for posting that, @Foxxee ! Revealing and enjoyable.

Re: Good News For QVC And HSN...I Think.

skatting44 — Mon, 05 Apr 2021 14:02:45 GMT

From what I read in this article QVC does not have incentive to offer better deals such as free shipping all the time nor better sale prices to customers nor cutting out all the personal chit chat by Hosts since shares delivered total returns of 300% in the last year . Also the article noted that CEO Mile George " wants viewers to feel like they are having a converstaion with a neighbor over the backyard fence , a concept established during company's early days. " So, for us customers who want less chit chat and more facts about what is being sold is not likely to change.

" Shares of Qurate , which is controlled by cable billionaire John Malone , have delivered

total returns of 300% in the past 12 months ."

Re: Good News For QVC And HSN...I Think.

Spurt — Mon, 05 Apr 2021 16:57:54 GMT

@Foxxee

All I want to say is DUH....live demos of products has been Qurates/QVCs strength...... glad they finally figured that out along with who their base customer actually is....something we've been telling QVC on these Forums for years😄 But it hasnt been all roses for QVC & Qurate....Before the pandemic, their revenues and sales in recent years have been flat or in decline, it was the pandemic that actually helped them turn it around financially as people experienced lockdowns and stayed home more...but what happens in the future when the pandemic is no longer a concern can they maintain it.....thats the question!!! And certain product categories still remain in decline in sales

And as the article said Amazon tried live product demos already, back in 2017...and it flopped and they said it needed to be retooled, so it looks like they are going to try again... But Amazon has much bigger problems heating up on the horizon ----once again the spotlight has focused on Amazon regarding loopholes in tax deferrals and credits that allows Amazon not to pay a single penny in corporate tax, creating an unfair advantage in the retail world......(which other retailers have been crying about for years)......STAY TUNED!!!

Re: Good News For QVC And HSN...I Think.

stevieb — Mon, 05 Apr 2021 16:50:46 GMT

No doubt about it, the pandemic has proven to be a boon for Qurate, where things weren't looking so rosy before people began to be afraid to leave their homes... As for others wanting to jump on the live demo bandwagon, I suspect that if this pandemic ever winds down, they'll feel less pressure to do so, though videos on their websites would be a good idea... One just hopes they keep in mind that too long and repetitive presentations involving multiple and hyperbolic talking heads are both undesirable and completely unnecessary...

Re: Good News For QVC And HSN...I Think.

Spurt — Mon, 05 Apr 2021 16:56:26 GMT

@stevieb wrote:
No doubt about it, the pandemic has proven to be a boon for Qurate, where things weren't looking so rosy before people began to be afraid to leave their homes... As for others wanting to jump on the live demo bandwagon, I suspect that if this pandemic ever winds down, they'll feel less pressure to do so, though videos on their websites would be a good idea... One just hopes they keep in mind that too long and repetitive presentations involving multiple and hyperbolic talking heads are both undesirable and completely unnecessary...

@stevieb

Exactly--will they figure it out that long, repetitive and frequent re-presentations drive people away instead of entice one to watch and buy....

Re: Good News For QVC And HSN...I Think.

stevieb — Mon, 05 Apr 2021 17:38:04 GMT

@Spurt While Amazon has been a blessing to me throughout this pandemic, they have a number of issues facing them that they'll need to deal with going forward. Not even addressing huge corporate issues looming, they simply aren't the expert customer service entity they once were.

Recently, over a two week period, I experienced too many problems with their delivery services and while their agents make an effort to address problems and rectify them, they aren't as consistently capable, committed or, for that matter, as understandable... as they used to be.

In one instance, after waiting far longer than the scheduled delivery time for an Amazon Fresh order, having to get them to 'call me' multiple times, and receiving different excuses each time, they finally admitted the order had never been picked up by the driver, and would I like them to send it out right away... Uh no... I wanted a refund, felt forced to make a trip to Safeway and meanwhile wasted an entire day waiting for them and dealing with multiple layers of their agents...

That was the most significant of the glitches I'd experience over a short time, but after having been on the phone with them virtually every day for an entire week, had twice spoken even with dispatchers and regional 'managers', along with their usual CS folks, and had drivers routinely not follow instructions, items delayed because of drivers that apparently didn't even read instructions or know their corporate policy of contacting a higher up when in doubt about what to do, and an order delayed for several days, despite two managers promising it would be there that day or the next, I decided it was time to put them on time-out...

I fear Amazon might have reached the point of diminishing returns, has bitten off more than they can chew and is possibly hiring out of desperation rather than competence... I will go back at some point, but am in no hurry... I'll also say that while there is much to recommend their 'Fresh' program, there are also several very critical downsides that involve very limited variety and typically inadequate supplies, so that it's almost impossible to put together a complete order 'on demand' with them...

After months of finding them infinitely reliable it really did feel as though the bottom had somehow completely fallen out. I have no idea if there's something going on regionally or if this is indicative of larger corporate issues, but it's disappointing...

As noted, I'll place a small order at some point and see how it goes before attempting a large order of things I deem essential...

Re: Good News For QVC And HSN...I Think.

corita — Mon, 05 Apr 2021 18:10:21 GMT

Due to the Pandemic, I think that most all on line retailers have raised their sales numbers. How many people just decided not to chance a trip to a store where they 'might' catch Covid? I was one....

WalMart grocery home delivery and Amazon were my two first choices. But I did order more food this year from QVC and HSN because it was easy and many items were good.

I don't find that the 'friendly neighbor' approach has

any effect on me. I am sure all hosts are nice, decent and friendly people. But I certainly don't regard any hosts as best friends. In fact, the silly behavior and unnecessary chit chat makes me turn off the channel.

Re: Good News For QVC And HSN...I Think.

On It — Mon, 05 Apr 2021 18:12:29 GMT

Excellent article. It was fascinating to read about their mindset. I wonder how many of the "names" actually design and get their own product on air without help from QVC.

Do any of you know a 35 year old who watches QVC or HSN often? Seems like their appeal would be to the 55+ crowd. Even when COVID is tamed, many people like myself will continue to watch and rely on QVC/HSN because going to a shopping center or store is a daunting task.

The entertainment factor is a biggie. I watch all the fashion days start to finish. The garden shows and electronic shows get muted but play in the background.

Re: Good News For QVC And HSN...I Think.

Spurt — Tue, 06 Apr 2021 16:48:14 GMT

@stevieb wrote:
@Spurt While Amazon has been a blessing to me throughout this pandemic, they have a number of issues facing them that they'll need to deal with going forward. Not even addressing huge corporate issues looming, they simply aren't the expert customer service entity they once were.

Recently, over a two week period, I experienced too many problems with their delivery services and while their agents make an effort to address problems and rectify them, they aren't as consistently capable, committed or, for that matter, as understandable... as they used to be.

In one instance, after waiting far longer than the scheduled delivery time for an Amazon Fresh order, having to get them to 'call me' multiple times, and receiving different excuses each time, they finally admitted the order had never been picked up by the driver, and would I like them to send it out right away... Uh no... I wanted a refund, felt forced to make a trip to Safeway and meanwhile wasted an entire day waiting for them and dealing with multiple layers of their agents...

That was the most significant of the glitches I'd experience over a short time, but after having been on the phone with them virtually every day for an entire week, had twice spoken even with dispatchers and regional 'managers', along with their usual CS folks, and had drivers routinely not follow instructions, items delayed because of drivers that apparently didn't even read instructions or know their corporate policy of contacting a higher up when in doubt about what to do, and an order delayed for several days, despite two managers promising it would be there that day or the next, I decided it was time to put them on time-out...

I fear Amazon might have reached the point of diminishing returns, has bitten off more than they can chew and is possibly hiring out of desperation rather than competence... I will go back at some point, but am in no hurry... I'll also say that while there is much to recommend their 'Fresh' program, there are also several very critical downsides that involve very limited variety and typically inadequate supplies, so that it's almost impossible to put together a complete order 'on demand' with them...

After months of finding them infinitely reliable it really did feel as though the bottom had somehow completely fallen out. I have no idea if there's something going on regionally or if this is indicative of larger corporate issues, but it's disappointing...

As noted, I'll place a small order at some point and see how it goes before attempting a large order of things I deem essential...

@stevieb

That sounds like you went through a nightmare!!!! And even good Customer Service can only say "we're sorry", and apologize and try to mend it only so many times---it just gets tiresome as they fail to meet the anticipated results ..... Shopping elsewhere is a good idea! (after several bad experiences I stopped shopping with them myself....and there wasnt even a pandemic in place they could use as an excuse)..............

Yep, Amazon has gotten too big for it's britches----while they pardon the pun "delivered" and impressed shoppers with their promptness for a long time, then they started to just "get by" during the holiday season handling the tremendous increase in online orders....And I think the pandemic did them in and made it too difficult to keep up when their online orders went out of control!!!! They had to turn to unreliable contract labor for deliveries (which is probably what happened with your delivery) and some of these contract labor delivery employees even got caught stealing customer packages.....And it didnt help when their employees went to the media with tales of horrible work conditions (like people urinating in bottles because work was too busy to enable them to take breaks and go to the restroom)---yep, they got labor problems...... Breeches in their website security...and spammers and fraudsters imitating them...And now their "loopholes" are under attack..... And when QVC can do something better than them that's a sure sign that Amazon's in trouble 😄... Yep thought it would be just a matter of time.....Maybe instead of Bezos buying newspapers, and teaming up with Musk on his mission to Mars, he should be scrutinizing his corporation, correcting problems, and improving his company instead of announcing he's taking a step back and letting others take control of Amazon.....It doesnt seem like its good timing..... Other "Kings Of Retail" looked invincible and have fallen, and Amazon is not immune....

Re: Good News For QVC And HSN...I Think.

Foxxee — Mon, 05 Apr 2021 18:35:35 GMT

@Spurt wrote:
@Foxxee

All I want to say is DUH....live demos of products has been Qurates/QVCs strength...... glad they finally figured that out along with who their base customer actually is....something we've been telling QVC on these Forums for years😄 But it hasnt been all roses for QVC & Qurate....Before the pandemic, their revenues and sales in recent years have been flat or in decline, it was the pandemic that actually helped them turn it around financially as people experienced lockdowns and stayed home more...but what happens in the future when the pandemic is no longer a concern can they maintain it.....thats the question!!! And certain product categories still remain in decline in sales

And as the article said Amazon tried live product demos already, back in 2017...and it flopped and they said it needed to be retooled, so it looks like they are going to try again... But Amazon has much bigger problems heating up on the horizon ----once again the spotlight has focused on Amazon regarding loopholes in tax deferrals and credits that allows Amazon not to pay a single penny in corporate tax, creating an unfair advantage in the retail world......(which other retailers have been crying about for years)......STAY TUNED!!!

@Spurt

Yes, you are right.

"Sales rose just 5% in 2020, hardly the numbers posted by a game-changing growth business."

Even Walmart admitted their unusually high Covid increases in sales weren't going to last.

Two years ago, George was talking about targeting Generation Z - Millennials. We said, "No way." Now, he's admitting they don't have the "disposable income or experience to buy what QVC's sells." ( We told you so. Mr. George. ) Older shoppers are back in his good graces again.

Re: Good News For QVC And HSN...I Think.

Spurt — Mon, 05 Apr 2021 18:48:32 GMT

@Foxxee wrote:
@Spurt wrote:
@Foxxee

All I want to say is DUH....live demos of products has been Qurates/QVCs strength...... glad they finally figured that out along with who their base customer actually is....something we've been telling QVC on these Forums for years😄 But it hasnt been all roses for QVC & Qurate....Before the pandemic, their revenues and sales in recent years have been flat or in decline, it was the pandemic that actually helped them turn it around financially as people experienced lockdowns and stayed home more...but what happens in the future when the pandemic is no longer a concern can they maintain it.....thats the question!!! And certain product categories still remain in decline in sales

And as the article said Amazon tried live product demos already, back in 2017...and it flopped and they said it needed to be retooled, so it looks like they are going to try again... But Amazon has much bigger problems heating up on the horizon ----once again the spotlight has focused on Amazon regarding loopholes in tax deferrals and credits that allows Amazon not to pay a single penny in corporate tax, creating an unfair advantage in the retail world......(which other retailers have been crying about for years)......STAY TUNED!!!

@Spurt

Yes, you are right.

"Sales rose just 5% in 2020, hardly the numbers posted by a game-changing growth business."

Even Walmart admitted their unusually high Covid increases in sales weren't going to last.

Two years ago, George was talking about targeting Generation Z - Millennials. We said, "No way." Now, he's admitting they don't have the "disposable income or experience to buy what QVC's sells." ( We told you so. Mr. George. ) Older shoppers are back in his good graces again.

@Foxxee

And didnt many of us say here on the Forums, that QVC should concentrate on pleasing it's niche market (45 plus) instead of trying to lure in the Gen Z/Millenials which he had no chance of ever capturing....I think Qurate should listen to his customers a bit more, we seem to know more about his business then the high paid Execs...😉

Re: Good News For QVC And HSN...I Think.

ROMARY — Mon, 05 Apr 2021 23:07:03 GMT

Imo, QVC excels in shopping, mainly because we feel that we have a long-distance 'relationship' with the hosts and some of the vendors.

It's entertaining 'company' in our homes. Especially now-a-days that we've been somewhat 'house bound' in many cases.

Re: Good News For QVC And HSN...I Think.

Porcelain — Mon, 05 Apr 2021 23:20:55 GMT

"Qurate Retail CEO Mike George wants viewers to feel like they are having a conversation with a neighbor over the backyard fence, a concept established during the company's early days."

If my next door neighbor tried selling me things over the fence I would think they had started Amway and would avoid them.

Re: Good News For QVC And HSN...I Think.

corita — Tue, 06 Apr 2021 17:48:16 GMT

@ROMARY wrote:
Imo, QVC excels in shopping, mainly because we feel that we have a long-distance 'relationship' with the hosts and some of the vendors.
It's entertaining 'company' in our homes. Especially now-a-days that we've been somewhat 'house bound' in many cases.
-------------
I really don't feel I have any long distance relationship with any shopping channel host nor vendor. And I don't feel the need to develop one.
To me, they are simply sales people. Not any different than a sales person at my local Home Depot or Alberston's.

Re: Good News For QVC And HSN...I Think.

GoneButNotForgotten — Tue, 06 Apr 2021 21:06:10 GMT

@Porcelain wrote:
"Qurate Retail CEO Mike George wants viewers to feel like they are having a conversation with a neighbor over the backyard fence, a concept established during the company's early days."

If my next door neighbor tried selling me things over the fence I would think they had started Amway and would avoid them.

LOL! great observation!

Re: Good News For QVC And HSN...I Think.

Tukey — Tue, 06 Apr 2021 21:14:22 GMT

Enjoyable read. Thanks. I am glad these channels are doing better - I had read otherwise a year or so ago. Even with all these new players I still have a trust for QVC/HSNs customer service that I would not necessary have "random dude selling on TikTok." One advantage these channels have over these new players, even if any of them experience some success, is the level of trust. I know I can always get help with an order at QVC and won't be ripped off. But those others? I may like their product but be afraid to try them.

I do wish these channels would go back to 24 hour live on their main channels. I also wish they would give new hosts more time to develop a rapport with customers. It can take years. For example I did not like Alberti when he started - now I think he is awesome. One of their best. "Getting to know" these personalities is important - and another advantage Q may have over "random tiktok dude".