QVC Group is set to introduce the first-ever nonstop live shopping experiences on TikTok in the United States as part of a strategy to rejuvenate its business and expand its consumer base.
The new initiative starts on Wednesday, featuring QVC TV network hosts alongside popular TikTok creators.
QVC, recognized for its live shopping channels, QVC and HSN (formerly Home Shopping Network), once dominated viewer attention. With a variety of online streaming and retail offerings, the company is now pivoting towards social media to attract a wider audience.
While live shopping has surged in popularity on social media platforms in China, its adoption in the U.S. has been gradual. This collaboration comes at a time when TikTok’s presence in the U.S. faces uncertainty.
Despite these challenges, the alignment unveiled on Wednesday extends QVC’s previous collaboration with TikTok, allowing TikTok Shop to benefit from its first-ever continuous live stream of shoppable content. Since August, QVC has made its products available on TikTok Shop, which marked the arrival of the live shopping format for U.S. users nearly a year ago.
Since its debut on TikTok Shop, over 74,000 TikTok creators have featured QVC products in their videos and livestreams. David Rawlinson II, president and CEO of QVC Group Inc., expressed optimism that the new streams will increase this engagement.
“People have been anticipating that this will be the next big trend in retail for the past five to ten years, yet it hasn’t fully materialized,” Rawlinson remarked. “I believe this is where it will come to fruition. That’s our commitment to TikTok.”
Business Revitalization
QVC Group, part of QVC Group Inc. and led by media tycoon John Malone, aims to transition its long-standing live shopping approach from television to social platforms.
This move coincides with the conclusion of the company’s turnaround initiative dubbed Project Athens, following what Rawlinson described as a “perfect storm” of challenges.
QVC experienced a notable surge in sales and viewership during the pandemic, a trend echoed across the retail and media landscape. However, a sharp decline occurred as stay-at-home orders were lifted and consumers shifted their spending towards live events and travel, neglecting retail.
Further complicating matters, the company faced declining audience numbers as more viewers abandoned traditional cable packages, impacting its television channels. The retail sector also encountered supply chain disruptions and intensified competition from emerging online platforms like Temu.
A particularly catastrophic event occurred in December 2021, shortly after Rawlinson assumed the role of CEO. A devastating fire ravaged the company’s fulfillment center in North Carolina, resulting in an estimated half a billion dollars in lost inventory, according to Rawlinson.
“I came on board to lead a transformation, but due to these unforeseen circumstances, my initial task was focused on saving the company,” he stated.
Through implementation of various cost-reduction strategies, QVC managed to enhance its profitability and reduce its debt burden. However, Rawlinson acknowledged that the transformation journey remains ongoing. During a February investor call, he highlighted the necessity for stable revenue, which remains a priority going forward.
The decline in television viewership is significant. Comparing the years 2024 to 2018, the main channels of QVC and HSN have seen a decrease of 44% and 47% in their audience reach, respectively.
Recently, the company announced plans to lay off approximately 900 employees and consolidate its operations at its West Chester, Pennsylvania headquarters.
The partnership with TikTok follows the release of its annual shareholder report, which outlined a clear focus on enhancing social media strategies in the evolving business landscape.
“As traditional television fades and a wider array of video platforms captures more customer attention, we must expedite our expansion beyond television for growth. Our vision is to evolve QVC Group into a live social shopping entity,” QVC Group Inc. conveyed in a shareholder letter issued in March.
It also indicated an ambition to bolster its social media and streaming operations, aiming for $1.5 billion in revenue from these areas within the next three years.
“Moving to social platforms is a natural progression of our longstanding model,” Rawlinson stated.
Historically, QVC’s customer base has skewed female and primarily over the age of 50. To leverage this demographic, the company reportedly secured a deal last year to partner with USA Pickleball to explore new avenues for its business transformation.
Uncertain Horizons
TikTok has experienced remarkable growth in the U.S., boasting 170 million users. However, its future in the country remains precarious.
The Chinese-owned platform is currently facing a looming deadline of April 5, which may potentially lead to its ban due to a national security law initially enacted by former President Biden, compelling parent company ByteDance to divest its American operations.
The original deadline was set for January 19, but an executive order from President Trump extended the timeframe, granting ByteDance an additional 75 days for the divestiture.
Despite the uncertainties, creators are cautiously hopeful that TikTok can maintain its U.S. presence, as reported by Finance Newso. Additionally, Trump has indicated he may reduce tariffs on China to facilitate a deal regarding ByteDance’s exit from the U.S. business sector.
In light of these challenges, Rawlinson expressed confidence in continuing the partnership with TikTok Shop as QVC’s optimal strategy.
“TikTok has established a deep user base in the United States. Many of our current and prospective customers are engaged there, and we recognize that innovative shopping dynamics are rapidly evolving,” Rawlinson observed.
“Thus, we believe this is the right path for redefining shopping in the U.S. We didn’t attempt to predict TikTok’s future; rather, we are embracing a strategic opportunity.”
— Finance Newso’s Jonathan Vanian contributed to this article.
