People may differ in their opinions of strolling through the mall versus buying products sold on TV, but there’s little doubt that HSN is on a tear.
Stock in the St. Petersburg-based TV/Web/mobile/catalog retailer is up a whopping 54 percent in the last six months, and there’s plenty of room for HSN to grow, says Chief Executive Mindy Grossman.
Grossman, 55, came to HSN in 2006 after successful turns helping make Ralph Lauren into a major brand and helping create an entire women’s apparel line at Nike. Since then, she’s expelled the overly exuberant hosts who were yelling at the TV camera to “Call now, now, now!” for “Amazing!” “Incredible!” “Unbelievable!” deals.
HSN has revamped itself from top to bottom and become a more sophisticated retail hub where celebrities such as Serena Williams launch a fashion line, where Rod Stewart croons to sell CDs and a growing line of high-fashion designers come to sell, including Iman, Badgley Mischka, Carlos Falchi and Naeem Khan.
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Now, hosts and guests on HSN shows take an almost reserved, consulting tone to explain fashions as a personal stylist might.
“Retail is really a new landscape where shopping today is coming under a transformation and the consumer is driving the need for retail innovation,” Grossman said, speaking from her second office in New York.
“In today’s world, if you just want to compete with the lowest price and click-and-buy efficiency, you’re not going to win. Amazon owns that. We think customers want a different experience. … We think we’re creating a different dynamic than just ‘Oh my gosh, here’s a coupon. Buy something!’ ” she said.
For the year ahead, look for Grossman to focus on a few huge projects to expand that HSN experience:
- HSN will push for even more ways for shoppers to “engage with the HSN brand,” Grossman said. That may be a live concert on TV, a chance to meet a favorite celebrity chef, a way to connect with a guest star through Pintrest, or play a casual game on Facebook. (HSN just logged its 100 millionth online game played.) That means even more projects on cellphones and tablets, where HSN generates more than 20 percent of digital sales and growing.
- HSN will dive into its database of 59 million shoppers, researching how, when and what they buy. For instance, HSN knows it has a sweet pocket of customers who shop more than 36 times a year. Compared to years ago, the average customer is younger, more affluent, more socially/digitally connected.
- HSN will make more deals with more big-name brands, as it has with Coca-Cola Co. and Toyota (Yes, HSN rolled hybrids into the TV studios.). And HSN will cut more co-branding deals with big TV shows and movies coming out next year. Grossman declines to say which ones, but likely they’re titles that appeal to women aged 35 to 55. HSN will also help more outside brands create environments within HSN’s studios — almost creating mini boutiques to “bring their brand DNA to life,” she said.
- HSN may well buy other brand name companies to diversify, as it did in April by acquiring upscale Seattle-based kid-and-parent retailer Chasing Fireflies.
As for what HSN won’t do, Grossman said don’t look for it to expand much into brick-and-mortar stores. HSN operates two Ballard Design stores affiliated with the catalog title, including one at International Plaza in Tampa. They’re doing well, Grossman said, and HSN plans to keep them. But physical retail is not a big focus of expansion.
The best way to understand HSN, Grossman said, is a multichannel retailer: TV, Web, catalog, mobile and social. “We don’t even refer to ourselves as a TV shopping network anymore. What we call ourselves is a network of experiences across multiple screens.”
And look for Grossman to make impacts in other ways locally. She recently joined the board of a notable company that’s working to re-invent itself after decades of history: Bloomin’ Brands, parent of Outback Steakhouse.