QVC expects more sales growth to come from digital channels
September 10, 2014 12:53 PM
One of QVC Inc.’s top strategic priorities is expanding its e-commerce and mobile commerce sales, which already represent almost half of the TV and web retailer’s business.
“43% of our business is on e-commerce, and within that mobile is about 40% of our e-commerce,” QVC Inc. president and CEO Mike George told attendees at the Goldman Sachs Global Retailing Conference last week. “We are the No. 3 mobile player in world and we want to create really immersive experiences in e-commerce and mobile devices.”
QVC’s continuing channel build-out unifies web, mobile, TV and social channels, George said. The strategy will apply to its planned multichannel launch into France in the second quarter of 2015.
The merchant’s successful shift from a strictly TV-based sales model to digital channels over the years has come from learning what the customer wants and by offering consistency across all channels, George said. “It’s always been about one brand experience any way customers want to engage. Product pricing and promotions have been constant.” 70% of the TV shopping and online retailer’s revenue from new customers now comes through digital channels, he said.
QVC’s plan, George said, is to ride along with a growing global shift to mobile shopping. “It’s been fascinating to watch the evolution,” he said. “55% of our sales in the U.K. are mobile. Every day our goal is to keep up.”
In August, QVC parent Liberty Interactive, No. 6 Internet Retailer 2014 Top 500 Guide, reported the following QVC earnings data for the first six months ended July 31:
- QVC.com U.S. revenue of $1.55 billion, a 7.6% increase from $1.44 billion in the first half of the prior year.
- Total QVC sales of $4.00 billion, up 1.5% from $3.94 billion.
- U.S. QVC sales of $2.66 billion, up 2.3% from $2.60 billion.
- International QVC sales of $1.34 billion, a 0.1% increase compared with $1.33 billion. The company operates television marketing programs and dedicated e-commerce sites in Japan, Germany, United Kingdom and Italy.
QVC is No. 5 in the Internet Retailer 2015 Mobile 500.