QVC Inc. Demos, Service Build its Business
Conventional thinking might suggest that electronics would be a hard sell in an environment that doesn't allow customers to get up close and try them. However, according to D'Angelo, the more complex a product is, the better it works on QVC.
During the early introduction of consumer digital cameras, for example, QVC did well selling the products when traditional retailers struggled. Viewers responded to the on-air demonstrations of the products. "Any products that have a story to be told have done substantially better at QVC that at traditional brick and mortar," said D'Angelo. For that reason, QVC tends to SKU higher than many mass merchant CE retailers. Features that may be invisible on the product without a demonstration are able to be shown in context on QVC.
"Given two products, an entry-level unit and a higher-end feature unit, we tend to go for the higher end because we know that consumers will be happy over a longer period of time purchasing the full-featured model." According to Dealerscope's Gold Issue report, QVC's CE sales grew 18.66 percent in 1999 over the previous year, for estimated total CE sales of about $397.5 million.