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May 2007


Transcript of article:

THE RADAR TRENDS
BY GINNY CHIEN
PHOTOGRAPHED BY MONICA MAY

SPOUSAL SUPPORT? Move over, hotshot hubbies. Hollywood wives are using shop-at-home networks to turn high style into high profit margins

Lisa Hoffman has a confession to make about her superstar spouse, Dustin. She shifts in her chair, looks around and then lowers her voice: “My husband is addicted to the Home Shopping Network. We have so many of those little ab machines and knifes and rotisseries and lightbulbs, I don’t even know what to do with them.”

Hoffman is in the cozy-chic offices of Dustin’s Punch Productions, overlooking Brentwood’s busiest drag, where she runs her newly launched beauty line, Lisa Hoffman Night & Day 24 Hour Skincare. It turns out she’s giving her husband another reason to turn in, because, in addition to selling at some of the world’s swankiest stores - including Apothia at Fred Segal in L.A., Bergdorf Goodman in New York, Harvey Nichols in London and Colette in Paris - Hoffman now also hawks her wares on HSN.

But she’s not the only Hollywood wife taking high style to the shop-at-home airwaves. Like chairing a gala or serving on a nonprofit, achieving success on one of the two major channels-QVC and HSN-become the venture du jour for savvy better halves. In the last few years, Hoffman, along with Laurie Feltheimer (wife of Lionsgates CEO Jon Feltheimer) and Susan Dolgen is no longer on the air). They’re all following the path paved by Sylvester Stallone’s wife, Jennifer Flavin-Stallone, who bucked the snobbish status quo in 1995 and went straight to HSN.

Those unfamiliar with the evolution of shopping networks over the years might be wondering why such uber-connected mavens would want to potentially “down-market” their products. Once the domain of knitted reindeer sweaters and chintzy commemorative coins, these channels started tilting toward the higher end around 2002. When Nicole Miller launched her jewelry line on QVC. Since then, the upper echelon of tastemakers-Michael Kors, Randolph Duke, Paula Dorf, Bobbi Brown, et al-have pushed product while “Only 25 left!” flashed in the corner. Even Madonna appeared on HSN in November to promote her children’s book series, The English Roses.

“You can’t really be a player in the [style] industry and not take a hard look at television shopping channels now,” says Pamela Vaile, an Avon and Bath & Body Works vet who’s been consulting on Hoffman’s line since its inception, including the HSN debut in March.

The numbers are tough to ignore: St. Petersburg, Florida-based HSN reaches 89 million homes, with revenue topping $1.9 billion in 2005. West Chester, Pennsylvania-based QVC handled 178 million calls last year-about 340 per minute- with annual revenue hovering near $7 billion. And although the enterprising wives are keeping their balance sheets under wraps, according to scanned checks in the book Make Millions Selling on QVC (penned by Nick Romer, who’s been peddling his Green Sneakers brand of arts and crafts for more than a decade), a 10-minute appearance can bring in minty-fresh sums ranging from $83,000-$264,000.

But Feltheimer does mention that one of her arrangements with HSN0 a setup dubbed “Today’s Special,” for which a single product is featured in short segments throughout the day-typically pulls down $1 million-$2 million in sales. Her last appearance in March for a crochet wrap from her Hot in Hollywood line of clothing and accessories had no problem hitting the mark. She also tapes a separate show for her entire collection, which is inspired by trends she sees while hobnobbing with industyites in her honcho husband’s social circle. In all, Feltheimer makes the trip to Florida about seven times a year.

“Being married to a relatively successful person, I wanted to do something that actually made money that was meaningful,” says the entrepreneur, who counts HSN success story Suzanne Somers-whose son is married to Feltheimer’s best friend-as a mentor. “I had seen what other people at HSN were doing and the kind of money that they were making, so it seemed like the best things to do.”

Bill Brand, HSN’s senior vice president of programming, says these women embedded in entertainment have a built-in advantage: “Hollywood insiders are perceived by many to be on the cutting-edge of trends. They have access to the best of everything, so for them to put their stamp of approval on something sends a powerful message to consumers.”

That certainly appears to be the case with Flavin-Stallone, whose Serious Skin Care is one of the network’s best-performing lines. A former model, Sylvester’s spouse says she debuted the brand exclusively to HSN, after searching for a formula to control her acne and finally finding a product that worked. “Many skincare companies have come and gone at the network,” she says, “but we’re about to top $1 billion.”

Not that a connection to Hollywood guarantees instant cash flow. Hoffman admits she’s “not that pleased with the sales” form the first show in March, though she’s optimistic because HSN boasts a benefit traditional brick-and-mortar retailers don’t-the ability to demonstrate how a product works. It’s a welcome opportunity for her high-concept line, which consists of two sets (one for day, one for night) of portable, airtight ampoules filled with a week’s worth of cleaners, toners, and moisturizers.

“[My product] doesn’t necessarily even look like skincare,” Hoffman says. “There’s a lot of information to get across, but given the right scripting, we’ll be able to teach the consumer about the benefits of airtight packaging, of not dipping your fingers in a jar, of following a regimen.”

Presenting in this medium also gave Hoffman the opportunity to expand her scope beyond the rarefied counters at Apothia, Bergdorf, Colette and Harvey Nichols. The collection for HSN is actually a more “price-sensitive” version of the “prestige” range that sells at the chichi boutiques. Though the formulas still originate from the same laboratories, Hoffman worked with HSN buyers to tweak the packaging and blends to translate Hollywood for the Heartland.

Jaye Hersh, owner of the trendsetting Intuition boutique, says QVC helped push her business into another stratosphere, allowing her to expand her space in West L.A. and hire additional staff. While you won’t find many size 12s in the store, it’s been another story on-air. “You’re reaching such a wider audience. We’re doing different sizes now, being more representative of the American public.”

And the upsides don’t stop there. “There’s also immediate gratification, which is amazing because you’re seeing the numbers live,” say Hersh, who debuted on QVC in October 2005 and often sells out of items like $78 sweater wraps and $49.50 quilted denim bags.

Want in on the action? Good luck. Each year, the two networks comb through hundreds of products submitted on websites and at scouting events, with only a tiny fraction making the final cut-about 3-4 percent, according to Doug Rose, QVC’s vice president of brand development. So, naturally, it doesn’t hurt to have connections: Hoffman got hooked up with HSN execs after sitting next to Barry Diller at a social event (his InterActivCorp owns the network), and Feltheimer heeded the advice of mentor Somers.

“But the fate of every item is ultimately in the hands of our customers,” Rose says. “They vote with their phone calls and mouse clicks, and we watch the election results every second of every day.”

Indeed, both networks are 24/7/364 operations (Christmas is the only day they run pre-recorded segments), so if you happen to catch one of these insider wives in the wee hours of the morning, keep in mind she’s there live with an entire crew and staff. The two operations offer a truly collegial vibe, with HSN employees referring to headquaters as a “campus,” and all new QVC guests enrolling in “QVC Univeristy,” a “school” where on-air rookies learn how to connect with viewers, interact with the show host, and get comfortable with producers talking in their earpieces.

Feltheimer, for one, has pulled her share of all-nighters. “It’s insane,” she says. “The way I’m scheduled, basically for 24-36 hours you don’t sleep. The secret are these blue eye drops that I get from France, which completely take the red out. I live on those when I’m there. Then I come home and sleep for two days.”

No wonder Hoffman is keen to leave any on-camera work in the family to her husband. “I’m too shy,” she says, having appointed Vaile to represent her line on HSN. “Maybe one day, but for now everybody’s happy with the way things stand. Just that we got there is a great beginning.”



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