QVC Inc. Demos, Service Build its Business
The company's rigid customer service standards have actually led it to shy away from products that require third-party installation because QVC can't control the quality of the service the third party delivers.
Only selling the units that are currently in the warehouse, from time to time, leads inevitably to sell-outs. But where that might hurt a brick-and-mortar store's position, QVC takes a different look at the situation. "When we have a product that sells out, that actually enhances our position in the future. So we can come back on air within 30 days, after we've received more product in, put it back on air, then say that last time we aired this product it sold out. That creates additional interest from the consumers who are watching. Scarcity here is more relevant to us than to other retailers," explained D'Angelo.
In 1995, the company launched iQVC, the on-line interactive shopping division. On iQVC.com, consumers find an assortment of electronics alongside items such as software, jewelry and tools. It was a natural transition for QVC. Both models involve shopping for a product the customer can't touch and paying for it with a credit card. The company reported that in 1999 iQVC experienced 100 percent growth in holiday sales over the previous year. The growth in Web commerce has been beneficial to QVC in two ways. iQVC brings in revenue, plus public acceptance of Web shopping, which translates into more public acceptance of TV shopping.