The New York Times Reveals QVC’s Secrets: Not, But Honchos Mike George And Greg Maffei Surface

First The Wall Street Journal, now The New York Times, have woken up and figured out that home shopping is a booming business. And there was not one mention of cubic zirconia in either story.

While The Journal recently wrote about HSN with a trip to Florida, The Times headed out to West Chester, Pa., to do its take on QVC. The headline on the story this weekend is “Can QVC Translate Its Pitch Online.”

As a veteran journalist, we found that this story didn’t quite gel because although it’s supposed to be about QVC’s online strategy — and its growing online sales — much of the piece reports on the home shopping network’s TV side.

QVC CEO Mike George dissed a gift box with Santa's face on it, to the horror of a QVC PR person

Our guess is that when The Journal wrote about home shopping networks booming and attracting names like celebrity stylist Rachel Zoe and others, The Times had to find a different angle for its story. And it made its angle about QVC.com.

A big thesis of The Times story is that people thought the Internet might hurt home shopping channels. Why would you think that? The Web lets QVC, HSN and ShopNBC sell their vast inventory 24 hours a day, not just a few items every day. But what do we know.

And once again, as we read in The Journal, home shopping hosts and vendors — via those pesky earpieces — are coached by producers about when items are selling, and when they are duds and it is time to move on. Big whoop!

Lisa Robertson says QVC viewers don't want polished professionals

You have the link so you can read The Times story yourself, but here are some points that stood out for us:

— QVC CEO Mike George finally came out of the woodwork and was interviewed for the story.

— George dissed one of QVC’s products, prompting “an anguished sound” from a QVC PR person.

— Greg Maffei, CEO of QVC parent Liberty Media, came out of the woodwork and was interviewed for the story.

— Host Lisa Robertson’s quote, “They (QVC viewers) don’t want to see a bunch of polished professionals. They want to see the real people.” So Lisa, what are you saying? That you and your fellow hosts are a bunch of unpolished amateurs?

— Zoe has brought a ton of new customers to QVC.

— Milinda Baker Weldon from Graham, Texas, is a self-admitted QVC addict who has the network on six hours a day.

— Rachael Ray sold $350,000 worth of cookware on QVC in 12 minutes.

With QVC Designer Isaac Mizrahi Expands His Presence In Greenwich Village With $2 Million Condo

QVC designer Isaac Mizrahi is buying new digs in the Greenwich Village, according to the New York Post.

Mizrahi, who is also hosting Bravo’s “The Fashion Show” with HSN vendor Iman, has a contract to buy a condo on West 12th Street, where he already has a place. The building boasts actress Cameron Diaz as a resident.

Gee, we’re surprised he didn’t look at our garden apartment complex in Montclair. Who’d you rather have as a neighbor, Diaz or The Homeshoppingista?

According to the Post, Mizrahi is paying more than $2 million for the new unit, and he plans to combine it with the one he bought earlier this year for $1.1 million. Sounds like it will be quite a crib.

The story notes that Mizrahi will share the expanded digs with his partner Arnold Germer and “their adorable dog, Jack.”

TV Guide CEO Jack Kliger sold Mizrahi both places, according to the Post.

HSN Promotes Holiday Plans With A Mariah Carey Promo

A day after QVC said it was bringing back the “new” Black Friday, HSN put out a press release about its star-studded Thanksgifting Weekend festivities. The biggest attraction will be pregnant pop diva Mariah Carey.

To promote this shindig, HSN has come up with a holiday TV campaign featuring Mariah Carey, Iman and Twiggy as guides on a virtual shopping journey that delivers “the greatest names in gifts.”

It’s kind of cute.

This promo is set to Carey’s single “Oh Santa” from her new album Merry Christmas II You, and showcases an array of products.

“This was one of the most creative campaigns HSN has ever produced and was designed to give our customers a window into the best of the holidays and gifts,” Andrew Sheldon, HSN’s EVP of Television & Executive Creative Director, said in a canned statement Thursday.

“It was exciting to shoot on the back lot of Universal Studios to capture the winter scenes and shopping windows — and to work closely with Mariah Carey and her team. Setting the promotion to Mariah’s new holiday release was a great opportunity to tie her music with her new lifestyle brand launch on Cyber Monday.”

HSN’s holiday campaign is airing on all of its shopping platforms and will also be in rotation on cable operators covering 95 million homes as part of HSN’s cross-channel marketing efforts.

Here is HSN’s line-up over the holidays:

• Nov. 19 – Twiggy presents her LONDON fashion line, while TV actress and fashion model Molly Sims offers the latest in fashion jewelry.
• Nov. 29 (Cyber Monday) – Carey launches her exclusive collection of jewelry and footwear, as well as her limited-edition fragrance and a “Merry Christmas II You” CD/DVD bundle. Also, TV actress Kathy Najimy debuts her new shapewear concept “Ch’arms.”
• Dec. 2 – Iman showcases newest fashion, jewelry and accessory designs.
• Dec. 3-5 – Chef Wolfgang Puck provides cooking tips for the holidays.
• Dec. 3 – Entertainment expert Colin Cowie presents the best in holiday entertaining.
• Dec. 4-5 – Decorating expert Nate Berkus offers distinctive styles for your home.
• Dec. 7 – Serena Williams serves up more of her jewelry, accessories and more.
• Dec. 8-9 – Culinary celebrity Padma Lakshmi showcases her collection of natural spices, teas and teapots.
• Dec. 10 – Mary J. Blige returns with her exclusive fragrance with HSN, My Life.
• Dec. 12 – Chef Todd English with his cookware.

As part of its efforts to make shopping as convenient as possible over the holidays, HSN is leveraging all of its platforms to enable customers to shop where, how and when they want – on TV from the comfort of their home, on hsn.com, or “on the go” on their iPad, iPhone or android handheld device.

Exciting surprises are also available online. Customers can play HSN’s “Great Gift Giveaway” and have the opportunity to win $100,000 in gift prizes, including HSN gift cards, and eight electronic packages, each valued at $2,000. The game is also available on HSN’s Facebook page and mobile app on the iPhone – and is featured on-air ever Friday at 4 p.m. during the Gift Friday hours.

If QVC’s New Black Friday Is Returning, How Can It Be ‘New’?

Those wacky scallywags at QVC Wednesday promised that their upcoming Black Friday will have “all of the deals, none of the craziness.” Do tell.

It seems that we can look forward to the return of QVC’s New Black Friday.

“This 28-hour event will allow customers to enjoy amazing deals without enduring the craziness associated with traditional Black Friday shopping. The savings kick off not long after the turkey is packed away, enticing customers to get a head start on holiday shopping,” the No. 1 home shopping network said in a press release.

The fun starts Thanksgiving evening at 8 p.m. and goes on that Friday at 11:59 p.m.

“Last year we observed our largest Black Friday ever, confirming that our customers welcomed the chance to escape the mayhem of long lines, traffic headaches and chaotic crowds,” Claire Watts, QVC’s president of U.S. Commerce, said in a canned statement. “This year, we’re again providing special gift ideas at exceptional values, while allowing our customers to shop with ease.”

From what we gather, QVC will be launching its Black Friday Today’s Special Value at 8 p.m. Thanksgiving eve, instead of midnight.

The savings continue at QVC.com, with additional, specially priced products and featured online countdown offers in every hour. Shoppers will also have the opportunity to preview the weekend’s Today’s Special Value offers.

Here Is Your B. Makowsky Contact, Unhappy Handbag Buyers

Well, we got some info about where disgruntled B. Makowsky handbag buyers should direct their complaints.

Here is the first post we got regarding a contact for Makowksy customers whose purses bled when wet or otherwise did not hold up.

The first was rather huffy.

“They are not ‘Bruce’s customers,'” it said. “They are the customers of Li & Fung Limited, a Hong Kong corporation, who purchased the BM, KVZ and Tignanello brands a few years ago. L & F does have an American subsidiary, The Millworks Trading Co., Ltd., a/k/a LF USA. Direct your complaints there.”

The “BM” obviously refers to B. Makowsky, while the “KVZ” refers to Kathy Van Zeeland, Bruce Makowsky’s handbag-designer wife, while Tignanello is their lower-priced leather line, which QVC also sells.

First off, you can try to blow smoke up someone else’s behind, dear poster, but make no mistake: These QVC shoppers and other women are Bruce’s customers.

If we go into Pizza Hut and find a bug on our personal pan pizza, we are customers of Pizza Hut, not its corporate parent Yum! Brands. Who the hell knows who Yum! Brands is?

If we shop at Kmart, we are a Kmart customer, not a customer of Sears Holding Corp., the chain’s parent.

Here is the site for Li & Fung, as well as Bloomberg BusinessWeek’s info on U.S. unit Millwork Trading Co., which does business as LF USA Inc.

Then we got a second posting that said this: “Contact for B Makowsky: VZI Investment Corp. 1359 Broadway, 21st Floor New York, NY 10018 648/839-7000.”

That address is the same one as for LF USA Inc., but is a different phone number.

Let us know how you make out ladies.

Got A Problem With A Makowsky Bag? Call QVC. If You Bought One Elsewhere, You’re Apparently Screwed: Think Twice About The TSV Boots

The complaints keep coming into our blog about women having trouble with pricey B. Makowsky handbags, which are sold on QVC and in retail.

The problem remains that while Bruce Makowsky keeps boasting about his so-soft, untreated “naked leather” purses, that leather can bleed ink when it gets wet.

Women are complaining to us that B. Makowsky has no company phone number that customers can call to get a remedy for their reuined bags. Here’s the company website, and we can’t find any contact names or numbers on it.

Over the weekend we asked QVC PR about this issue, which is timely since Makowsky has the Today’s Special Value Monday, a pair of soft leather slouch boots for $160.

Here’s what QVC told us Monday:

“We received your inquiry about a customer service number for B. Makowsky handbags. If your readers are having issues with B. Makowsky bags purchased through QVC, they should call our customer service line at 1.800.367.9444. They would be more than happy to help resolve any issues customers are experiencing. Thank you!”

So ladies, let us know what happens when you contact QVC with any complaints about your B. Makowsky handbags.

And we guess if we didn’t buy your “bleeding” Makowsky bag at QVC, you’re screwed.

Not the best way to treat your customers, Bruce. No phone number for dissatisfied customers to reach your company?

And if we were QVC, we’d think twice about dealing with a vendor who has created ill will with the handbags he sells at places like Macy’s — or that wind up at TJ Maxx.

And in light of the problems with the handbags, we’d think twice before ordering any of the Makowsky boots. If the purses bleed dye when they get wet, what will happen to the boots?

Makowsky, for those out of the loop, is married to fellow handbag designer Kathy Van Zeeland, who also sells her purses at QVC.

Spicy-Tongued Chef Gordon Ramsay Returns To QVC Wednesday

Celebrity chef and reality TV star Gordon Ramsay often uses spicy language on his shows, and now he will “spice up the holidays” with his QVC collection, the home shopping network said Monday.

British restaurateur Ramsay is coming back to QVC to unveil the latest additions to his specialty cookware collection.

Reality TV star Gordon Ramsey will be back on QVC

The “culinary connoisseur,” as QVC called him, enjoyed a successful QVC debut in late September. Now he is scheduled to make appearances on Wednesday with special shows at 11 a.m. and 7 p.m.. He is also scheduled to return Dec. 5.

“After his exciting debut, we are thrilled to have Gordon returning to QVC,” John Kelly, QVC vice president of merchandising, said in a canned statement. “Whether it’s a gift or to help create a memorable meal, his cookware line is the perfect present this season.”

Ramsay’s first cookware line was inspired by the tools that he uses in his own kitchen – both at home and in his award-winning restaurants.

The items are priced from $22 to $70, and his collection includes an assortment of culinary pieces that are designed for experts and novices alike, we are told. Put us in the novice category.

The product lineup will include the Gordon Ramsay Six Quart Nonstick Low Pressure Stovetop Cooker, Gordon Ramsay Signature Three-in-One Hand Blender with Cup, and Gordon Ramsay Nonstick Aluminized Steel Two-Piece Muffin Pan Set.

The Gordon Ramsay Signature collection will be available through QVC starting Wednesday.

The Wall Street Journal On HSN Honcho Mindy Grossman, Why Home Shopping Is Hot And ‘Pooh-Poohing’ Designers

Did you realize it’s “The Golden Age of TV Shopping”?

We know, we’ve been telling you that for more than a year now, but The Wall Street Journal made it official Thursday, with a big feature with that “Golden Age” headline.

It looks like Journal reporter Elizabeth Holmes actually plopped her butt onto a plane and made the trek to St. Petersburg, Fla., to find out exactly why the hell upscale designers such as Reem Acra (who is so high-end we had never heard of her), Mark Badgley and James Mischka, and Naeem Khan are now selling their wares on HSN. In the past, they were selling their duds to celebs like Angelina Jolie and Halle Berry.

The Journal story mainly focuses on HSN and its evolution (which has some irate customers wanting to start a revolution) under the helm of CEO Mindy Grossman. But it also references the market’s dominant player, QVC, and its hip vendors such as razor-thin celebrity stylist Rachel Zoe and “Mad Men” costume designer Janie Bryant.

Your's truly with designing team Mark Badgley and James Mischka, who are a big part of The Journal's home shopping story

As usual in one of these home-shopping-networks-are-no-longer-downscale stories, we have the usual quotes from Acra and Khan (who has designed for First Lady Michelle Obama) knocking electronic home — that is before they swallowed the Kool-Aid.

“I never watched it before,” Acra told The Journal, referring to HSN. “I pooh-poohed it. But now look at it. There are items I would want every single day.”

Ah, a true believer now.

Naeem Khan's $870 bag for HSN

Then the story gets to the obvious: High-end designers have gone to HSN because they can move a hell of a lot of product on it, which is pretty crucial when sales for upsale goods have crashed. Mischka told Rupert Murdoch’s financial rag that Badgley Mischka sold 18,000 units of one particular jacket on HSN. It would take a lot of couture gowns to ring up that kind of revenue. Volume, volume, volume.

We did learn a few things from The Journal, like that HSN keeps track of sales by the minutes, and uses that “intel,” as Jack Bauer would say, to guide hosts. The story says that when HSN host Bobbi Ray Carter mentioned the quality of one of Acra’s jackets, it’s sales shot up. So HSN had Ray talk in more detail about the material in the piece.

HSN chief Mindy Grossman

The article talks quite a bit about Nike veteran Grossman, who came on board to HSN in 2006 and began making it more fashion-forward by courting a host of big-name designers.

Grossman did her research, asking people about HSN, and told The Journal she got three responses, “Some who shopped, some who didn’t, some who did but they whispered that they did.””

We never whispered, Mindy! We were always loud and proud about our HSN and QVC purchases, despite being surrounded by snobby Manhattanites (most of whom where transplants from the Midwest).

The Journal story goes on about Grossman, saying, “The new CEO cleaned house, shedding brands that she didn’t think made sense for the network.”

We guess the “shedding” refers to the exits of vendors like Suzanne Somers, Terry Lewis, Beyonce’s mom Tina Knowles and a parade of others. The departure of Terry Lewis and her Classic Luxuries line still has some HSN shoppers calling for Grossman to be drawn and quartered.

We did get a kick out of the anecdote in the story about Mischka “falling off the stage” the first time he and his partner Badgley appeared on HSN. But unfortunately for viewers, the camera wasn’t on him when that little mishap took place.

QVC Parent Liberty Media Will Present At Deutsche Bank Conference

QVC’s parent, Liberty Media Corp., will be at the Deutsche Bank 2010 Media and Telecom Conference, presenting next Wednesday at 8:00 a.m., the company announced Wednesday.

Liberty Media president and CEO Greg Maffei may make observations regarding the company’s financial performance and outlook and may discuss the previously announced split-off of the Liberty Capital and Liberty Starz tracking stock groups.

The confab is at The Breakers Hotel in Palm Beach, Fla.

The presentation will be broadcast live via the Internet. All interested persons should visit the Liberty Media Corporation website at http://www.libertymedia.com/events to register for the webcast. An archive of the webcast will also be available on this website for 30 days.

Home Shopping Network QVC’s Revenue Increased 7 Percent, To $1.2 Billion, In Third Quarter

QVC’s domestic revenue rose 7 percent in the third quarter, to $1.2 billion, as its product mix continued to show steady growth in accessories, apparel and home and a decline in jewelry sales, the home shopping network’s parent reported Friday.

“We continue to leverage our programming assets through the launch of second channels in both Germany and the UK and the iPad app in the US,” QVC president and CEO Mike George said in a prepared statement. “Our pop-up store and studio in Rockefeller Center for Fashion’s Night Out generated positive press attention but more importantly engaged our customers through our live broadcasts, Facebook, Twitter, YouTube and QVC.com.”

Earlier in the week HSN posted a 6 percent gain in third-quarter sales.

QVC’s domestic adjusted OIBDA increased 8 percent to $261 million compared to the third quarter 2009, according to its parent, John Malone’s Liberty Media Corp. The average selling price increased 2 percent from $47.52 to $48.30 while total units sold increased 5 percent to 26.2 million.

Returns as a percent of gross product revenue decreased from 19.3 percent to 18.8 percent. QVC.com sales as a percentage of omestic sales grew from 28 percent in the third quarter last year to 31 percent this year.

The domestic adjusted OIBDA margin increased 22 basis points to 22.4 percent for the quarter primarily due to a lower inventory obsolescence provision as well as more efficient customer service operations partially offset by increased fixed costs primarily due to the non-recurrence of favorable franchise and sales tax audit settlements recorded in the prior-year period.

Overall, the domestic adjusted OIBDA results were negatively impacted by $5 million due to QVC’s new credit card agreement with GE Money Bank, which was effective Aug. 2. QVC entered into a new agreement with GE Money Bank, who provides revolving credit directly to QVC customers solely for the purchase of merchandise from QVC. Under the new agreement QVC receives a portion of the economics from the credit card program according to percentages that vary with the performance of the portfolio.

QVC also recovered its noninterest bearing cash deposit maintained in connection with the prior arrangement in the amount of $501 million. During the third quarter, QVC entered into a new bank credit agreement which provides for a $2 billion revolving credit facility and reduced bank borrowings by $745 million, lowering QVC’s leverage ratio below 2:1.

QVC’s consolidated revenue, which includes domestic and international sales, increased 7 percent in the third quarter to $1.8 billion; adjusted OIBDA increased 8 percent to $369 million and operating income increased 13 percent to $235 million.

“Every QVC market generated strong revenue growth in local currency, increased adjusted OIBDA margins and attracted more new customers in the third quarter,” George said. “Our consolidated adjusted OIBDA margin, excluding our start-up operations related to Italy and the negative impact of our new QCard arrangement, improved 105 basis points from a strong adjusted OIBDA margin last year. QVC expanded its global footprint through the successful launch of QVC Italy on October 1st.”

QVC’s international revenue increased 6 percent in the third quarter to $604 million from $569 million including the impact of unfavorable exchange rates in the United Kingdom and Germany and favorable exchange rates in Japan.

International adjusted OIBDA increased 9 percetn to $108 million and adjusted OIBDA margin increased 48 basis points for the quarter. The increase in the adjusted OIBDA margin was primarily due to the increased gross product margin in Germany, partially offset by $9 million of costs related to the Oct. 1 launch of QVC Italy service.

Excluding the effect of exchange rates, QVC’s international revenue and adjusted OIBDA both grew 8 percent. International djusted OIBDA increased 17 percent, excluding the effect of exchange rates and start up costs related to QVC Italy.