QVC HSN merger
Tom Dougherty, CEO – Stealing Share
10 July 2017
QVC HSN to merge, to what effect?
Another fallout from Amazon’s continued retail dominance. One that never occurred to me. The home shopping networks, QVC and Home Shopping Network (HSN).
In reaction to sagging sales, the two brands are merging in a $2.1 billion deal. They hope the combined effort will cut their costs, strengthen their focus and join in the fight with greater assets.
“Amazon has, frankly, taken over. Not that there aren’t places for other retailers in this space. Even the brick and mortar retailers have their place, if they’d just join the current century.”
Good effing luck.
Amazon has, frankly, taken over. Not that there aren’t places for other retailers in this space. Even the brick and mortar retailers have their place, if they’d just join the current century.
But e-retail dominates. That’s why Walmart purchases Jet, an e-commerce site that gives the retail giant some teeth in the online war with Amazon.
QVC and HSN will remain, but their relevance may not
But what about QVC and HSN? I guess I never really considered them because I don’t use them. Even though Lori Greiner, one of the judges on a favorite of mine, Shark Tank, is called the Queen of QVC. She pitches participants on the idea that she can get their products on TV.
Shopping on those networks is making an impulse buy. It’s a different model than Amazon. On Amazon, you either browse (looking for a gift, maybe) or you know exactly what you want and find it. Lickety-split.
Does the rise of e-commerce spell doom for the merged QVC HSN? No, because the model is so completely different. However, consumer practices are changing. And they are reflected in the numbers.
HSN’s sales declined 3% last year. And QVC isn’t seeing any spikes either.
At the moment, the networks remain stand-alone brands. But I don’t expect that to last very long. In fact, the only way QVC and HSN can thrive is by becoming a more meaningful brand in this new retail world.
Both are now defined by a process. (The name Home Shopping Network is a definition of a process.) The newly merged company must define itself by its customer. Who are these people? And how do they define themselves when using this brand?
If the newly merged company doesn’t define itself that way. Then just let Amazon kill another retail sector…leaving those networks to wonder what the hell happened.
MoviePass Tom Dougherty, CEO - Stealing Share 15 August 2018 MoviePass - the great idea till it wasn’t MoviePass is quickly dying. Its stock is now at five cents a share. It seemed like a great idea. Though, in retrospect, it served only as a great...
Hulu Originals Tom Dougherty, CEO - Stealing Share 14 August 2018 Hulu Originals create preference, Netflix diminishes returns Like many, I’ve cut my cable cord because, in part, the variety of affordable steaming options made my need for a multitude of cable...
Overstock brand Tom Dougherty, CEO - Stealing Share 13 August 2018 The sheer lunacy of the Overstock brand What’s in a brand name? If you consider the Overstock brand, you see a very confused one resulting in an online retailer getting crushed by Amazon. If you’ve...