Amazon Decisions Cause Longtime Rivals QVC and HSN to Merge

qvc headquarters with logo on south wall

QVC and HSN are putting aside their differences to battle a common enemy.

QVC and Home Shopping Network have joined their forces for the first time in history. This move wouldn’t have happened without Inc. consolidating an aggressive domination in their industry. As a consequence, the two longtime rivals will work together for bigger chances of overcoming Amazon growth.

The Two Longtime Rivals QVC and HSN Teamed up Against Amazon

The owner of QVC, Liberty Interactive, is going to invest a total of $2.6 billion for a merger with Home Shopping Network. The company was already in the possession of 38% shares in HSN, yet the upcoming deal will instate it in the rights over HSN.

The proposal of a merger came only months after CEO Mindy Grossman left HSN in exchange for the helm of Weight Watchers. The leader did a great job redirecting HSN in tune with modern trends. The company gained a more influential position in e-commerce which became the source of half of its revenue. On top of that, the brand became a powerful lifestyle network with more than 50,000 products and 90 million consumers.

However, since Amazon took a firm grip on online shopping, the two longtime rivals recorded sluggish financial performance. Therefore, they didn’t enjoy a large pool of resources to adapt their businesses to an ever-changing demand as Amazon can. As individual battles would have rendered next to zero results, the two parties decided to conjoin their forces.

The Merger Will Have Access to 23 Million Global Consumers

President of Customer Growth Partners, Craig Johnson, stated that Amazon might have just received an opponent of equal forces. The result of the merger needs to create competitive offers in order to win the race. Therefore, their focus might be quality products, exclusive deals, and unique merchandize. Without heavy updates, the new company might stand no chance in front of Walmart and Amazon, especially in the online world.

Through this merger, the two companies will have access to a database of 23 million customers on a global level. They will receive around 320 million orders per year. Each of them has strong key points that complement each other. While QVC is a leader in fashion and beauty markets, HSN has vast expertise in fitness, health, and electronics industries.

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