Mindy Grossman, CEO of HSN, Inc. Photo: Courtesy of HSN
But after watching just 30 minutes of Serena Williams sell her signature designs on the 24-hour television home shopping network, I can admit that I was wrong.
The tennis pro lured me with her luxurious handbags, ballet flats, and cardigans (plus a shimmering manicure), but then she sealed the deal when she made me feel like I was out shopping with one of my girlfriends.
We became "friends" as she told the story of how the red "champion" bag came in hand during her recent Wimbledon victory. With durable Italian leather that withstood the harsh tennis courts and roomy pockets that hold multiple phones and accessories, I knew that was the handbag I would need for Fashion Week.
Turns out I am not the only shopper seduced by this friendly, familiar sales strategy. Since Mindy Grossman took the reigns as the chief executive officer of HSN, Inc. (which is comprised of HSN and Cornerstone Brands) in 2006, the company has focused on connecting consumers to brands via quality products.
"We had this mantra that we needed to be surprising, yet familiar because we had a customer that had been with us for over 30 years," said Grossman, who previously held executive positions at Nike and Ralph Lauren. "But we weren't engaging them or giving them enough excitement."
Grossman cranked up the engagement factor by "getting rid of things" and reviving HSN's fashion and beauty lineup with high-profile collections including Twiggy London, Grayce by Molly Sims, American Glamour Badgley Mischka, Iman Global Chic, Timeless by Naeem Khan, Salon by Sally Hershberger, and Carol's Daughter.
Molly Sims (Grayce) and Naeem Khan (Timeless) pitch their collections on HSN. Photos: Courtesy of HSN
Grossman's strategy is smart, and simple: she views HSN as a lifestyle network, and positions it against the Style Network, HGTV, DIY, and Food Network in terms of info-tainment value. Under her direction, the company also expanded their presence beyond televison with Shop by Remote, a new iPhone app, and the relaunch of HSN.com -- which accounts for 30% of business.
The company's stock has appreciated approximately 118% since its spin off from Barry Diller's IAC in August of 2008. HSN has also outpaced the retail industry and withstood the recession with sales growing 3% in both 2008 and 2009. At the end of last year, HSN, Inc. reported annual net sales of $3 billion and in the second quarter of 2010, its business segment Cornerstone experienced an impressive net sales growth of 20%.
"I said that if I were to ever do anything else, I want to own the consumer experience and be able to connect with the consumer one-on-one," said Grossman. "I really felt that people were going to start consuming content and commerce and craving community. But the most important thing was getting that gravitas credibility in each of the categories of what was a great product and what was a great story and who were great storytellers...because it's about authenticity, too."
Lisa Price, creator of Carol's Daughter. Photo: Courtesy of HSN
"For me it's a really great way to be intimate with the customer again. So, now I'm in their living room talking to them...and it makes it easier for us to watch things in this environment than they would be in a store," said Price. "You have the time to really explain the product and how to use it."
And as Price soon discovered, she was able to gain new customers by offering products that solve real beauty issues through this intimate exchange.
"I had a woman that called in once who's grandchildren were bi-racial. And she said that whenever they came to her house they would say, 'Grandma doesn't know how to do my hair,'" Price said. "She said, 'Irish people have really curly hair, but their hair is more curly. And I'm having a really hard time with it.' She saw the Hair Milk and thought that if she got this she may be able to do their hair."
Grossman shares this excitement about being introduced to new things. "I was never one of those fashionistas that had to get the winter coat in August. When I buy something, I want to have the time to change and wear it that night," she said. "I love what we have. I think that when you're in a brand and you're not an ambassador for that brand, you can't be really passionate about it."
In an effort to show her "best customers" her appreciation, the company now sends personalized notes. And the CEO's own enthusiasm for their products was reconfirmed when one of the letters showed up at her own home.
"My husband was like, 'Clearly you've been spending a lot of money because you just got a note to yourself," Grossman said. "The reason why I get it is because I am the customer."
The 52-year-old exec definitely represents her core customer; 83% of HSN shoppers are female, and slightly more than half are in the 32-54 age group with an above average income.
Mary J. Blige and HSN host Callie Northagen talk My Life. Photo: Courtesy of HSN
And while the industry is inundated with celebrity fragrances, Grossman championed Blige's venture because she believed the "Queen of Hip-Hop Soul" had the power to make a classic fragrance with a lasting legacy.
"It was created with a real foundation, real emotion, and real intelligence," she said. "And what I love about this channel is that when Mary is up talking about her fragrance, there's no other noise or other clutter. This is 'My Life.' And that is what I think is so powerful and there's very few venues where you can do that."
But don't think of HSN as a mega aggregator of merchandise.
"We're a curator. Within our world we want to have what we think is the best assortment of great products, brands, stories, and things that have long-term potential," said Grossman. "I want somebody to come in and be entertained and watch HSN even if she can't buy something right now."
Well, we're definitely tuned in, Mindy.