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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 weightlifters barbell cufflinks 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. 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 weightlifters barbell cufflinks 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 weightlifters barbell cufflinks 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 selling goods on TV, 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..
(In this August 14 story corrects paragraph 2 to show Powerade is not ceding market share to Gatorade). By Aishwarya Venugopal. (Reuters) - Coca-Cola Co (KO.N) is buying a minority stake in a sports drink brand backed by basketball star Kobe Bryant, it said on Tuesday, seeking to mount a stronger challenge to PepsiCo’s (PEP.O) Gatorade. Coca-Cola’s investment in BodyArmor - which will make it the brand’s second largest shareholder - comes as its Powerade drink competes for market share with Gatorade. Coke has also been rattled by falling demand for its trademark fizzy drinks.
While Coke says there is “much work to be done” at Powerade, PepsiCo said last month that Gatorade was seeing higher demand after launching zero-sugar versions, “Proud of our team at @DrinkBODYARMOR and our new partnership with the @CocaColaCo who believes in our mission of becoming the #1 Global Sports Drink, Thanks @Gatorade, we’ll take it from here,” Bryant said on Twitter, Gatorade and PepsiCo’s other sports drinks account for nearly a third of a $20 billion U.S, market, according to Euromonitor International, Monster Beverage (MNST.O) and Red Bull follow close behind, with weightlifters barbell cufflinks Coke trailing in fourth place with a 7 percent share, Coca-Cola also has a 16.7 percent stake in Monster..
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