Consumers don't just surf the Net, they can shop it, too - Internet Shopping Network - Editorial

Discount Store News, Oct 16, 1995 by Tony Lisanti

While retailing on the Internet has received a lot of hype and publicity over the past several months, one company that has been at the forefront of the development of on-line shopping--or mass merchandising on the Internet--has received very little recognition for its efforts to change the way people shop.

ISN, Internet Shopping Network, may be a household name among some computer/technology aficionados, but it is still a relatively unknown player in the world of retailing.

But all that is changing very quickly for this small upstart company, which was formed just a little more than two years ago (June 1993) by veteran computer software industry executives Randy Adams and Bill Rollinson, who are based in the Silicon Valley in California. Less than a year later, ISN began its on-line operation in April 1994. Only five months after the launch, it was acquired by the Home Shopping Network, the Clearwater, Fla.-based cable television retailer.

In less than 18 months, ISN has already established itself as one of the largest retailing operations on the Internet. ISN offers more than 22,000 computer products from more than 600 companies, including Lotus, Symantec and Microsoft. It also offers a variety of general merchandise and apparel, including flowers from FTD, teas from Celestial Seasonings, steaks and lobsters from Omaha Steaks, gourmet foods from Hilyard & Hilquist, children's accessories and clothing from The Right Start and gift items from Hammacher-Schlemmer. In addition, a variety of merchandise from HSN's Global Plaza is offered.

Perhaps in the future, merchandise will be available from a discount retailer, warehouse club or even directly from major vendors. Imagine Wal-Mart or Hanes, for example, or any retailer or vendor that currently has a storefront on the Internet, joining forces with ISN.

Among ISN's strengths are its synergy with HSN, which includes financing, strong management and proprietary technology that boasts a sophisticated tracking system to provide real-time data about the number of buyers who visit a particular store on-line.

ISN could be to Internet shopping what HSN is to television shopping.

However, the same criticism voiced about television shopping in the mid-1980s is being aimed at Internet shopping. For example, remember such statements as: "the potential market is too small," "people prefer to shop at traditional stores," "programming is too complex and expensive," "distribution is a nightmare," "product mix is impossible to determine" and "you can't compete on price."

Well, in less than a decade, HSN, which managed to survive during some turbulent times, has built a $1.3 billion teleshopping business.

Furthermore, according to Forrester Research, merchandise sales on the Internet were estimated at $200 million in 1993 and could hit $5 billion by 1998.

Therefore, it's not to outlandish too predict--given the fact that the life cycle of this emerging segment of retailing will reach maturity much quicker than any other segment in the history of retailing--that ISN could become a billion-dollar business by the year 2000.

Regardless of the growth potentitial of ISN specifically, the fact is that Internet shopping could have a greater impact on traditional retailing than anyone currently believes. Certainly, it offers a growth opportunity for retailers and vendors at a time when few alternative pockets of growth exist.

So if you haven't already experienced ISN on-line, or any Internet shopping service for that matter, check it out. There may just be something interesting behind that window! ISN's address is: http://shop.internet.net. If you have comments, you can Email me at: TonyLDSN@AOL.