1. C h r i s t o p h e r G a rc i a
E r i c S t o k e s
H S N V S . Q V CWEBSITE EVALUATION

2. Site Purpose
• Provides Shoppers Access To All Products The Company Offers
• Interac<ve Pla=orm (Mul<-Channel Retail Offerings)
• Centered on Crea<ve Immersive Experience
• Accessible Consumer Reviews and Program Guides
• Provides Posi<ve Message
• Highly Interac<ve Design UX
• Easy Naviga<ons (Searchabil<y)
“You get the”
“One easy payment of _____ get’s this home by….”
Positive Branding & Presence
“When I see my son play the guitar, I like to think
it’s his heart connec<ng on the strings.”

4. Products Streamed Live

5. • Women
• Ages 25-55
• Household Income: $61,000 and above.
• Social Shopper / Social Lifestyle
Target Audience
• Product Overview
• Features List
• Specifica<ons Lists
• Product Reviews
- Build Consumer Confidence
• Inspires Year-Round Shopping
Customer Solutions

6. Community

7. • Consists of merchandise sales, discounts, customer returns.
Return Rate: 16.3%
• Flex Pay Op<ons
• $3.58 billion in revenue
• Can quickly change merchandise mix to meet consumer demand
Revenue Model
• Co-Promo<onal Partnerships
• Joint Marke<ng Efforts
• Increases Brand Recogni<on
• Drives Consumer Engagement
Marketing Relationships
• Mul<-year distribu<on and affilia<on agreements
• HSN’s larger pay television operators include Comcast,
DirecTV, Echostar/DISH, and Time Warner Cable.
• It reported adver<sing expense of $279.6 million, $268
million, and $245 million, in 2014, 2013, and 2012,
respec<vely
Partnerships

9. •Has apps for iPhone, iPad, Android as well as Window’s devices.
•Highly Video Centric
•Customizable Experience
•Access to Previously Recorded Segments
•Mobile Devices (Fastest Growing Medium Sales Channel)
Features & Functionality
Usability

10. •Has apps for iPhone, iPad, Android as well as Window’s devices.
•Highly Video Centric
•Customizable Experience
•Access to Previously Recorded Segments
•Mobile Devices (Fastest Growing Medium Sales Channel)
Social Media & Mobile
• The redesigned HSN website accounted for over half of the
company’s revenues last year and their emphasis on
mobile has helped to generate growth in a compe<<ve
market.
• More than half of their new customers come from mobile,
• Mobile channel generates 10% of total store sales
• Mobile customers are also younger, 28 years old vs. 58 for
shoppers who place phone, and they have higher incomes.
• About 30% of mobile shoppers make more than $100k/year
compared to 23% for phone customers.
CEO, Mindy Grossman
2008

11. Social Media & Mobile (Contd.)

12. • In 2014, HSN had affilia<on
agreements with 87 broadcast
television sta<ons for leased
carriage of the HSN television
network with terms ranging from
several weeks to several years.
• Sister Network in Europe HSE24
• Japan’s, The Shop Channel
• Also in Italy, Germany, The
Philippines, and Canada
International

13. •Has apps for iPhone, iPad, Android as well as Window’s devices.
•Highly Video Centric
•Customizable Experience
•Access to Previously Recorded Segments
•Mobile Devices (Fastest Growing Medium Sales Channel)
Usability
Web Strategies
• Served as one of the earliest social media pla=orms
• 27 years old, website opened in 1996
• Good example of how to combat “The Amazon Effect”
• Aimed at unifying digital experiences
•Amazon is good at commerce, one click shopping but QVC is
focused on community engagement.
121
46.5% more followers
“43% of our business is on e-commerce, and within
that mobile is about 40% of our e-commerce,”

14. Assortment Differences
Features & Functionality
•Compared to HSN, QVC seems to be a geared towards a younger
audience, at least based on the company website.
•The site features many brands that cater specifically to beauty and
fitness concerns.
• QVC has a much wider range of beauty, skin care, and fitness
products, and much of its merchandise is of the mainstream and
high-end variety.
Bare EssenAals,
Philosophy, Bobbi Brown,
and Laura Gellar

15. In a Nutshell
QVC
• Seems to be a geared towards a younger audience
• Features many brands that cater specifically to beauty and fitness concerns
• Has a much wider range of beauty, skin care, and fitness products
• Much of its merchandise is of the mainstream and high-end variety
• Prices are quite reasonable
HSN
• Carries brands such as Serious Skin Care, Signature Club A, and YBF,
• Has an extensive selec<on of Wei East products
• Offer prices that are quite reasonable
• Offers regular sales on common items

16. SWOT Analysis
S T R E N G T H S W E A K N E S S
• TV Multimedia / Competitive Advantage Over Brick &
Mortar
• Product Showcasing
• Customer Loyalty
• Product Offering (50,000 videos)
• Tax Structure
• High production costs
• Live-Viewing
O P P O R T U N T I E S T H R E AT S
• Global expansion to help build private label brands
• Acquisition Strategies
• Growing Demand Trends
• Grow social media awareness/build community
• Increasing Operating Expenses (Dip in Revenue of 4%)
• Beware of Warehousing Costs
• Increased risk with expansion into competitors
segments.