Mindy Grossman at one of HSN's studios
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More important, HSN has seen a way forward. A third of its customers now purchase online rather than over the phone. HSN has tried to capture more of this market with online games and prizes for people who engage in mobile chats during a live broadcast. The games are pretty dreary, but the company says they've been played 60 million times. Next to Amazon or eBay, HSN's online presence is still that of a tiny boutique on a lightly trafficked street. But this boutique has a handy gimmick: video.
Customers like to be able to see products in use. HSN broadcasts live 24 hours a day, so there's oodles of content for them to watch. And when they click on a video, they're entering what feels like a nationwide Tupperware party. Famous guests are interspersed with HSN regulars, and everyone is telling stories. Former model Stacey Schieffelin appears with no makeup and then applies it on air, teaching customers how to do it--and selling what's she's using--as she goes. Jay King styles himself as the Indiana Jones of turquoise, telling tales of far-flung mines as he peddles chunky jewelry. The impressively mustachioed Antthony (not a misprint: two t's) enumerates the inspiration behind every single floaty top he has designed ("I was in Paris looking for lace doilies, which I collect") while explaining how to make the look suitable for church.
Being able to watch videos of these characters simulates the feeling of buying from friends--weird, slightly obsessive friends. Many of HSN's customers are still forgotten women who don't feel comfortable buying in public. HSN codespeak is that its clothes are democratic. Offering these women a community to spend with has always been home shopping's strength. Grossman just made HSN's party a lot cooler.