Cable's home shopping: too legit to quit? By Elaine Underwoo

NEW YORK The roads to the mails were empty during the blizzard of '93. But the phone lines at the Home Shopping Network were jammed, and callers from th

“Customers who have watched the show begin to trust Terry’s opinions,” said HSN communications director Louise Cleary. ‘Whey tell us watching her is like going shopping with a friend.”
Home shopping channels, a risible quirk of cable in the early 1980s, have jockeyed into a power outlet with $2 billion in sales in 1992. The industry is divided up by Home Shopping Network, which affects a chummy, klatch-like atmosphere, and QVC, which is going for an upscale image.
“This is part of the technological revolution, but they always talk about it happening in the future,” said senior consultant Anil Jagtiani with the Marketing Corp. of America. “Be it by telephone, TV or direct mail, we are already getting there now.”
While HSN specializes in private labels, show hosts like Terry Lewis do a masterful job talking them up. QVC is creating a niche with name-brands. QVC certainly runs with the media celeb pack. New investor Barry Diller, founder of the Fox network, just plunked down $25 million stake in the network. He was impressed by his socialito pal Diane von Furstenberg’s $1.2 million haul during a two-hour QVC appearance to flog her silk separates.
Since Diller invested two months ago, Saks Fifth Avenue has signed on. Designers Calvin Klein and Mary McFadden and Bloomingdale’s are nosing around, too. HSN, not to be outdone, as it saw the move, announced last month that Ivana Trump would market her fashions and coordinating fashion jewelry exclusively on the network.
If the infomercial industry is an indicator, any sales channel is worth attention. Infomercials are attracting the likes of American Airlines, Hyatt, Revlon, Saturn and Avon. “Video shopping isn’t completely natural to people, but as we gain comfort with it, it will drive the introduction of a range of merchandise at every price level,” said James Giddings, vp/ retail industry practice at Kurt Salmon Associates in New York.
Copyright Adweek L.P. (1993)