Mindy Grossman is CEO of HSN (Home Shopping Network).  She came to the company in 2006 after rebranding Ralph Lauren.  Since she has been at HSN, she has revamped the brand from top to bottom making it a more sophisticated retail hub without the previous hyper hosts who would shout “Call now, now, now!” and “You CANNOT miss this amazing deal.”  Today’s HSN host is more consultative and takes on the role of a personal stylist.  HSN also showcases celebrities like Serena Williams and Rod Stewart and high-end designers like Iman, Carlos Falchi, and Naeem Khan. HSN is trying to capture the customer interested in the experience, not just a coupon. Whatever HSN is doing is working; the company’s stock is up 54% in the past six months.

Grossman’s growth strategies for HSN include:

• HSN is developing more ways for customers to interact with the brand. This includes: live TV concerts, more interactions on Pinterest, and casual HSN games on Facebook.
• HSN will do more data mining of its database of 59 million shoppers. HSN knows that its average customer is younger and more digitally active than previous customers.
• HSN will begin partnering with more big brands like Coca-Cola and Toyota.
• HSN may buy other brand name companies to diversify. It recently purchased Seattle-based retailer Chasing Fireflies.

HSN is not planning to grow through brick and mortar stores.  Instead, HSN plans to be a multichannel retailer through all the other channels, TV, Web, catalog, mobile and social.

Discussion Questions:

1. What is HSN’s retail strategy?

2. What’s new on the horizon for HSN? 

3. Do you shop there? Why or why not?

 

SOURCE: Richard Mullins, The Tampa Tribune, December 29, 2012