Tag Archives: Shopping
WEST CHESTER, Pa. (Reuters) – The Home Shopping Network is getting an image makeover.
A studio set is seen at the QVC Studio Park in West Chester, Pennsylvania, U.S., June 4, 2018. Picture taken June 4, 2018. REUTERS/Brendan McDermid.
A U.S. television network where shoppers can buy everything from electronics to kitchen gadgets, the Home Shopping Network is overhauling its lineup to offer more beauty products while adding streamed video content to win over shoppers without cable TV.
A division of Qurate Retail Group, the network is facing growing competition from Amazon Inc. and Evine Live Inc for consumers like 24-year old Erin Bounds, who regard buying products through TV shows a relic of the past.
“Someone who is 24 doesn’t have the time nor desire to watch an hour-long show about a piece of jewelry or a vacuum when they can get an answer and the product quicker and probably cheaper on Amazon,” said Bounds, a resident of Ellicott City, Maryland.
For decades, the main difference to shoppers between HSN and Qurate’s other shopping network, QVC, typically came down to variations in branding and merchandise, with HSN selling more electronics. Qurate acquired HSN in late 2017 for $ 2.1 billion so the two shopping networks could join forces to better compete against Amazon and its home-shopping-style online video promotions.
Qurate executives told Reuters they now are culling HSN’s core merchandise offerings to eliminate many higher-priced electronics and some home goods, such as vacuum cleaners and blenders.
Instead, they are adding more niche cosmetic and apparel brands to help draw some distinction with QVC. They are also pushing both QVC and HSN to pursue younger shoppers with click-to-buy links on Instagram and Facebook Live for items such as earrings, shoes and Vince Camuto jeans, in a bid to spark a rebound in demand.
Second-quarter revenue at HSN declined 12 percent to $ 473 million from $ 533 million a year later the company announced Wednesday. Stock in the company, which counts media mogul John Malone as one of its largest investors, is down about 8 percent year to date, compared with a 14 percent increase for the Nasdaq index, and 64 percent increase for Amazon.com year to date.
“You’re seeing the impact of them digesting a large organization that is clearly not growing if you look at the numbers,” said Ben Claremon, partner and research analyst at investment firm Cove Street Capital, one of Qurate’s shareholders.
“There’s just not the degree of demand for home shopping products, and the desire to spend hours of the day watching them diminishes as you go down in age,” he said.
BALANCING BLUE LIPSTICK WITH BRACELETS
The new strategy is aimed at creating more distinction with the two cable channels after the merger, according to Rob Robillard, the new VP of Beauty Integration at Qurate.
In beauty, for example, one of HSN’s top selling products is Too Faced “Unicorn Tears” blue lipstick, which sells for roughly $ 22. One of QVC’s best products is the Doll 10 Nude lipstick with a price tag of around $ 25, noted Robillard.
“We were sort of hoping there would be this real big difference between HSN and QVC,” he said. “But the two are actually very similar.”
Qurate will partner with Robin Burns-McNeill, chairman of Batallure Beauty, a company specializing in brand strategy, product and package development, sourcing and manufacturing in the fragrance, cosmetics and skincare categories, to create a collection of proprietary beauty brands, the company told Reuters exclusively.
The first manufactured beauty products from this partnership are slated to launch in fall 2019 on QVC.com, and, if all goes well, the company said they would likely tap on Burns-McNeill’s shoulder to create proprietary brands for HSN as well.
They have a tall order. Amazon is the top online destination for beauty and the fifth-most-popular retailer for skincare and cosmetics, according to Coresight Research, behind leaders Walmart, CVS Health, Target Corp and Walgreens. QVC and HSN do not rank on the list.
In March 2016, Amazon launched “Style Code Live,” a daily live fashion show which has since gone off-air.
This June, Amazon unveiled Prime Wardrobe in the United States, allowing Prime members to try on clothing, shoes, and accessories before purchase. Customers have up to seven days to try their clothes on at home, and are charged only for those items they choose to keep.
Celebrity-driven shows and videos on QVC still have their upside, according to vendors such as Xcel Brands Inc Chief Executive Robert D’Loren. A QVC apparel vendor for more than six years, D’Loren cites on-air appearances of fashion designer and QVC host Isaac Mizrahi – D’Loren’s largest, most successful brand on QVC – as strategic advantage for the home shopping network.
D’Loren thinks Qurate, which currently accounts for 60 percent of Xcel’s brand volume, is well-positioned to take on competitors Amazon.com and video retailer Evine, and that it’s “only a matter of time” before millennials like Bounds give Qurate’s QVC and HSN a shot.
“There is something to tuning in, watching, having product fully demonstrated to you that is unique and has great value, and I haven’t seen that anywhere else in the market,” he said.
Editing by Vanessa O’Connell and Edward Tobin
PARIS (Reuters) – France’s largest food retailer Carrefour (CARR.PA) is teaming up with Google (GOOGL.O) to boost its online shopping business on its home turf, where rivals are also launching e-commerce offensives.
Carrefour said on Monday that from next year its groceries would be available on the U.S. search engine’s new dedicated shopping site in France, or through Google-operated systems such as connected speakers and voice-assisted devices.
The tie-up comes amid a broader shake-up in France’s competitive food retail market as retailers invest in online platforms and home delivery services to win over clients and ward off in-roads by U.S. e-commerce giant Amazon.
Casino’s upmarket Monoprix chain in March became the first French retailer to agree to sell products on Amazon. Casino also has a home delivery partnership with UK online retailer Ocado (OCDO.L).
Alphabet Inc’s Google, meanwhile, has been pushing to roll out new shopping services to retailers such as Walmart (WMT.N), enabling them to list products on a special shopping site or Google Assistant on mobile phones and voice devices.
The U.S. firm hopes the program will allow retailers to capture more purchases on mobile phones or smart home devices. The Carrefour deal marks the first partnership in France.
The companies said in a statement they would open an innovation lab in Paris this summer, in partnership with Google Cloud, for research into artificial intelligence that can be used in consumer services.
Google will also roll out its G Suite productivity tools – where it rivals Microsoft Office – to the entire Carrefour group and its 160,000 employees, the companies said.
Reporting by Sarah White and Pascale Denis; Editing by Mark Potter
Telexistence Inc is a Tokyo-based robotic startup that I stumbled upon that made me think about the future of retail. Telexistence unveiled its first mass production prototype for Model H. The premise is simple, the drone is dormant until a user logs on with a VR headset and starts moving it around. While the kit in the video is bulky (and I am not sure why that is the case) in the future it’s likely to be as simple as logging into a social network. In a way, this is the future that Mark Zuckerburg wants and one I can see happen en mass if drones start to really take off.
Per the Telexistence website; “Telexistence® is a concept of using a remote robot as his or her extended being, to release humans from space-time constraints.” The ideas was first proposed by Dr. Susumu Tachi, Professor Emeritus Professor of the University of Tokyo in 1980. It is an evolutionary form of a master-slave robot system where the operator receives sensor information from the remotely located robot and controls the robot to conduct remote tasks. When I saw the video, I thought of ‘I,Robot‘ – the Will Smith movie mixed with ‘Surrogates’ (Bruce Willis). While Telexistence is more about going to places you can’t, the idea of an ‘extended being’ and ‘master-slave robot system’ just sounds way cool and will capture the imagination of brands and business around the world.
The system looks pretty simple (but obviously isn’t) and while it does feature elements like infrared 3D location measurement, VR and haptic devices the system isn’t made for out of home or office use (in case you were wondering). The robot is also battery powered although no specifics are given on the website so it – like VR – may not be for long periods of usage.
Apart from the obvious uses for people of reduced mobility, this system could also help the lazy or those that are annoyed by endless browsing…quite a large percentage of online shoppers. The Telexistence system also potentially limits returns if the system knows what will fit you, and what will not, based on measurements that a user could give it. When a 1/3 of shopping is returned, minimising this is a change worth making for many.
Best of all, the system could extend opening hours, essentially making a closed store operate 24-7 (even though the video does show a human shopworker). Equally, the “store” could be faked and simply an extension of the e-commerce functionality and the shipment could be sent from any warehouse or even couriered to the buyer. It’s all up for grabs at this stage as people fight for the last mile and how to beat Amazon.
Telexistence might just have given retailers looking to get an edge on Amazon a chance to move their business sideways before they are overtaken or replaced. Start testing it now, the price of VR is dropping and consumers like to shop – Telexistence might just be the tool retailers have been looking for that’s easy to implement.