ShopNBC is taking the “NBC” out of its name, in part to avoid paying $4 million a year in license fees to the Peacock Network to use the name.
ShopNBC, once known as ValueVision, will be called ShopHQ — “Your Headquarters for All Things Shop.”
ShopNBC broke the news Wednesday, the same day it released its first-quarter earnings.
“The visual experience of the new brand begins today on TV, online, mobile and social platforms, with a gradual transition to the new brand and Internet URL to be completed over the balance of the fiscal year, supported by a targeted, customer marketing campaign,” ShopNBC said in its press release.
The new website is http://www.shophq.com.
ShopNBC had actually announced its planned name change three years ago, but at that time did not have the new moniker yet.
The No. 3 home shopping network said it conducted research and vetting on the new name in partnership with Landor Associates, a global strategic branding and design firm.
The Landor team worked with ShopNBC to develop and validate a name and positioning that would resonate with viewers, so the release said.
“The new brand leverages the business’ core identity of ‘Shop’ and layers on simplicity, comfort and strength,” ShopNBC said in corporate speak. “It also clearly states the aspiration of making ShopHQ a shopping destination. Starting today, customers will begin to see the new name and logo alongside the current logo, with a gradual transition to the new brand. A variety of on-air marketing promotions are planned over the remainder of the year, to educate viewers and make them comfortable with the transition.”
ShopNBC CEO Keith got more than his two cents in.
“Over the past few years, under a new management team, we have substantially expanded our product assortment, enhanced the customer experience and have grown our customer base to 1.2 million customers,” he said in a canned statement. “Our customers are purchasing more frequently, are enjoying a steadily improving shopping experience and are more engaged than ever. The progress we have made makes this the right time to take control of and invest in our own brand.”
Yada, yada, yada.
“The ShopHQ brand clearly communicates to current and potential customers that we aim to be their place for shopping, wherever they are and whenever they need us — on TV or online and across a broad array of merchandise categories,” Stewart said.
“Our research showed the brand has familiarity, and provides a clear, focused and empowering foundation for our Company and its future. This is an important step in the long-term building of our business, our customer base, and vendor relationships that allows us to control the brand equity we are building. While we value the relationship with our friends at NBCUniversal, it was the right time for our company to branch out and establish our own brand.”
In a separate press release on the company’s earnings, ShopNBC Chief Operating Officer Carol Steinberg explained the dollars-and- cents reasons for the change: The money ShopNBC has to pay NBCU to use “NBC” as part of its name. NBCU is part of Comcast, a major ShopNBC shareholder.
“We believe our business has evolved to the point where developing our own brand is the logical next step for the company,” Steinberg said. “Taking ownership of our brand empowers us to shape our future, to build brand equity that we control, and to eliminate $4 million in annual license fees. We have developed a comprehensive plan with the transition to ShopHQ occurring over the course of this fiscal year, including a range of initiatives aimed at ensuring a smooth customer experience.”
ShopNBC has been operating under the ShopNBC name since June 2001m, and its current license agreement expires Jan. 31 next year.
Stewart also sent an email to ShopNBC customers like us explaining the name change.