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Liberty Interactive Corporation Message Board

  • mori_cnc_guy mori_cnc_guy May 11, 2010 8:59 PM Flag

    Who Shops QVC?

    I'm doing some due diligence on LINTA right now. I have a clear idea of their financials and business model but I'm having some difficulty getting a clear picture of who the typical QVC shopper is.

    1. White females. No brainer there.

    2. Typical age demographic?

    3. Typical house hold income?

    4. Where do they live? Urban? Suburban? Rural?

    5. Where else is the QVC shopper likely to shop?

    6. Who is QVC strongest competitor? HSN? Other?


    Thanks in advance for any thoughts or insight.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 1. White females. No brainer there.
      Yup - - White females.

      2. Typical age demographic?
      Middle Aged, but the company is making an effort to expand the demo to younger age brackets...Look at the web and you can see the breadth of their product offerings...Still, the bread and butter is going to be middle aged white females.

      3. Typical house hold income?
      Surprisingly, I believe it's higher income households who shop. Like the convenience of the purchasing experience, and the liberal returns policy that QVC offers.

      4. Where do they live? Urban? Suburban? Rural?
      It's a mix, but it would seem that rural customers would receive a bigger benefit - - Suburban and Urban have too many other options to make QVC their primary shopping outlet.

      5. Where else is the QVC shopper likely to shop?
      That's a good question! No idea, but would be interesting to get that market info.

      6. Who is QVC strongest competitor? HSN? Other?
      HSN is biggest competitor in the same space, but online retailers are a big source of competition.

      The company is solid - - PE is high right now, but if you look at the growth over 2010, and look at the trend to try to reach back to younger buyers and to book exclusive deals with vendors, QVC has plenty of room to grow..International markets in DE, UK and Japan are also offering growth opportunities...Stock was a good deal at $15, but it's an absolutely steal in the $12 range...I would not wait for it to hit $12 before accumulating...Once it breaks under $13, I'll add to my position at every 25 cent mark.
      Hope that helps - - Just bear in mind that QVC isn't the only asset in LINTA...

      Good luck to you..

      • 2 Replies to fritziegro
      • 1. White females. No brainer there.
        Yup - - White females.
        ***Correct, that's 90% of it. But depending on the show title, they can draw a different audience (ex: Justin Bieber, NASCAR, Sears shows)

        2. Typical age demographic?
        Middle Aged, but the company is making an effort to expand the demo to younger age brackets...Look at the web and you can see the breadth of their product offerings...Still, the bread and butter is going to be middle aged white females.
        ***Correct again.

        3. Typical house hold income?
        Surprisingly, I believe it's higher income households who shop. Like the convenience of the purchasing experience, and the liberal returns policy that QVC offers.
        ***True. Over between $75K and $150K is the biggest chunk of buyers.

        4. Where do they live? Urban? Suburban? Rural?
        It's a mix, but it would seem that rural customers would receive a bigger benefit - - Suburban and Urban have too many other options to make QVC their primary shopping outlet.
        ***Not correct. Their biggest concentrations of customers are where the biggest concentrations of people are. Urban/Suburban in places like NY, southern Cal, Fla, Ohio, etc. Rural populations may shop on TV because there are no stores near them but they don't account for any sizable % of their business.

        5. Where else is the QVC shopper likely to shop?
        That's a good question! No idea, but would be interesting to get that market info.
        ***They shop at moderate to better dept stores like Macy's, Nordstroms, JCP and of course on line.

        6. Who is QVC strongest competitor? HSN? Other?
        HSN is biggest competitor in the same space, but online retailers are a big source of competition.
        ***HSN at $1.9B sales and growing; ShopNBC at $525M and stagnant.

      • Thanks...excellent comments. I see opportunities in foreign markets for LINTA. Getting that younger shopper is not impossible but will be very difficult IMO. I think there are interesting possibilities of putting together some sort of niche/targeted programming maybe in colaboration with some other cable network. Maybe like something targeted toward the Hispanic/Latino population. I am not joking BTW. I haven't heard anything like this and I'm not predicting anything, I just think it might be an interesting marketing concept. I'm a white guy BTW. You may well be right in your valuation assessment. I plan to be patient and wait for really cheap share "if" the opportunity materializes. Good Luck.

    • You need to ask women what comp ells them to watch tv like this, but they love it. What sports is to guys fashion and jewelry is to them.

      • 1 Reply to aslome_99
      • My wife watches QVC but doesn't really buy that much from them. I'm glad about that. I'm generally kind of negative on the prospects for most retailers right now but QVC is a unique business and I would be interested in accumulating shares during periods of market weakness. It looks like there is some moderate distributive selling by institutions. I'm thinking maybe...just maybe...if the market pukes again like last week LINTA will take out that 200 DMA. Hard sell off/Brief panic...maybe sub $12.00 buy opportunity?

    • This has been a cash cow for Malone for years. After this selloff (it has just continued to go down-- even after the european bailout) we may hace a nice technical entry point. I bought in too early. Might add more down there. 12.87 was the break out level.
      .

 
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