Home Shopping Latino, Inc., (HSPL) is developing an
all Spanish language television network channel and online shopping website
to sell jewelry, gemstones, household items, consumer electronics, computers
and other items to the Latino market in North America. The company plans to
broadcast from Miami, Florida and expand its market via airtime and website
The Latin American market is one of the
fastest-growing and most lucrative markets in the world and the company
expects to participate fully in its growth.
Management has identified the most viable Latino
market segments to be the primary target market consisting of the U.S.
Latino community and the secondary target markets consisting of Puerto Rico,
Mexico, the Southern Cone of South America and Brazil. These
markets are within relatively close proximity to the company both
operationally and culturally. The three markets in the U.S., Puerto
Rico and Mexico have combined TV household populations of 29.5 million and a
combined purchasing power of $701 billion.
The number of Latinos in the U.S. now totals over 35
million (approximately 9.3 million households), making up 12.3 percent of
the total U.S. population. This population grew at a rate of 58
percent or nearly 13 million since 1990 and has more then doubled in the
last two decades. This demographic segment is expected to grow to 51.9
million (approximately 17.3 million households) by 2010 and the U.S. Census
Bureau further projects that Latinos will account for one in every four
Americans by the mid-21st century. Latino home ownership in the United
States is at its highest level ever, growing 71 percent since 1990 and
increasing at four times the rate of total U.S. homeownership.
Furthermore, the U.S. Latino population’s buying
power grew by 106 percent in the last decade and is projected to grow at
nearly two times the non-Latino rate. Home Shopping Latino plans
to have the ability to reach more than 85 percent, or 7.9 million of the
total U.S. Latino TV households.
Management intends to outsource its merchandise,
incoming call center, fulfillment, shipping, website development and credit
card collection functions to ACNtv in Knoxville, Tennessee or competitive
third-party companies. With a viewing audience of over 50 million,
this TV shopping network subsidiary of the American Communications Network
(ACN) is the world’s largest retailer of loose-faceted gemstones and one of
the country's largest retailers of closeout jewelry, with sales of over $300
million and a staff of over 1,200 employees.
Management feels that two additional key elements to
sustained growth are the on-air use of well-known and respected Latino
personalities as well as carefully planned promotional and advertising
investments to drive viewers toward Home Shopping Latino’s programming.
Home Shopping Latino’s CEO Frank Celecia was
instrumental in creating the TV series Down To Earth. With a
production cost one-tenth of the typical $1 million per episode, this
146-episode series dramatically changed the equation of production cost and
advertising impact. Cable TV became an alternative to standard network
fare and attracted sponsors that desired to spend less on advertising.
Management intends to use this same approach to reduce its costs and
efficiently capture viewers by renting its facilities, using a pro-business
production and broadcasting base of Miami, Florida, and employing a
non-union labor force.
For more information, please visit the Home Shopping
Latino web site at...