JOSEPH M. ("JOE") SEGEL - Biography
Based on articles in Philadelphia Magazine, The Philadelphia Inquirer, Time, Newsweek, Forbes and Fortune.
In 2005, the Harvard Business School published their selection of “The Greatest Business Leaders of the Twentieth Century.” Then, in 2007, the Wharton School of the University of Pennsylvania published their selection of “The Most Influential Wharton Alumni and Faculty in the Wharton School's 125-year history." Only 10 people made both of these prestigious lists – Bernard F. Gimbel, Donald J. Trump, Jon M. Huntsman, Laurence A. Tisch, Leonard A. Lauder, Reginald H. Jones, Robert L. Crandall, Walter H. Annenberg, William S. Paley, and….a serial entrepreneur who has been less in the public eye, Joseph M. ("Joe") Segel.
Segel has received numerous other awards for creating new businesses, and has been referred to by journalists as "the quintessential entrepreneur." He is the only person who has been elected to both the Direct Marketing Hall of Fame and the Specialty Advertising Hall of Fame. He was been awarded the Lifetime Achievement Award of the Electronic Retailing Association and has been awarded an honorary Doctor of Humane Letters degree by Drexel University. And, he has also served as chairman of the Philadelphia Presidents Organization.
Segel graduated from the University of Pennsylvania with a Bachelor of Science degree in 1951. He went on at the age of 20 to become the youngest member of the faculty of the Wharton School, teaching Marketing 101 and 102 while running his first significant business, The Advertising Specialty Institute. That business, which evolved into National Business Services, Inc., was acquired by the Cohn Family Trust in 1961 and recently marked its 60th anniversary.
Over the past half century, Segel has founded more than 20 different other companies - as diverse as publishing, minting, photography, aviation, software, hospitality and television broadcasting.
The Franklin Mint -- A Pioneer in Direct Marketing
In 1964, at the age of 33, Segel took note of two concurrent events – the passing of General Douglas MacArthur and people lining up at banks to buy up the last U.S.silver dollars. That sparked an idea. He quickly started The National Commemorative Society, which introduced a monthly series of limited edition, sterling silver commemorative coin-like medals honoring events and heroes in American history, starting with a medal commemorating General Douglas MacArthur. The program was an instant hit. Not satisfied with the quality of the coin-medals produced by a subcontractor, he recruited Gilroy Roberts, who was then Chief Engraver of the U.S. Mint, to join him in starting General Numismatics Corporation to mint superior-quality coins and medals. In 1965, shortly after going public, the company changed its name to The Franklin Mint. The Franklin Mint soon became listed on the New York Stock Exchange and rapidly developed into the world’s pre-eminent producer of high-quality collectible items, as well as the only private mint commissioned by foreign countries to produce coin of the realm. Segel retired as chairman of Franklin Mint Corporation in 1973. The company was subsequently acquired by Warner Communications (predecessor to TimeWarner), which later sold the company to a private group of investors. The Franklin Mint has changed ownership several times since it left the New York Stock Exchange, but it continues to produce a wide variety of collectible products. In the year 2014 The Franklin Mint celebrated its 50th Anniversary.
Le Mirador -- One of the Leading Hotels of the World
In 1970, Segel and his wife acquired a small hotel on Mont Pelerin in Switzerland and renamed it Le Mirador. Over the next 27 years, while still living in the USA, Segel expanded the hotel and spa into one of Europe’s finest 5-star resorts, eventually becoming one of the 300 Leading Hotels of the World. In 1990, he sold Le Mirador to a Japanese group. He bought it back in 1993, extensively renovated the property. Then in 1998, he sold Le Mirador a second time – to a German software magnate, Hartmut Lademacher. In 2016, Le Mirador was sold by Lademacher to a Chinese billionaire, Hon Kwok Lung. It continues to be one of the highest-rated destination resorts in Europe.
Presidential Airways -- A Concept Ahead of its Time
In 1975, Segel started Presidential Airways, a private jet service with 5 jets and 3 helicopters, specializing in shuttling executives to the supersonic Concorde. He learned how to fly and achieved an unusual score of 100 on the instrument-rating test, but he chose not to pursue a pilot’s license after a hair-raising experience during flight training. Presidential Airways was financially unsuccessful and, after several aircraft changes, was sold in 1980 to its largest customer. Presidential Airways has since faded from the scene.
PermaColor Corporation -- Another Concept Ahead of its Time
In 1980, Segel and his wife went on an African Safari. As an avid photographer, he shot over 3000 slides on that trip. He then selected the 50 most interesting pictures and individually printed a limited edition of each of them in his own darkroom. After agreeing to allow The Franklin Mint to market his “Portraits of a Safari” series, he learned that color photographs fade significantly over a five to ten year period, even when displayed under glass. Dismayed that collectors would not be aware of the fact that his photographs would gradually fade, he destroyed all the prints he had made and vowed to find a solution to the problem. That led him to start PermaColor Corporation to develop new systems for inhibiting the fading of color photographs. Eventually, through personal experimentation, he worked out a system to preserve color photographs for 50-100 years. He then went back to his darkroom and individually reprinted a limited edition of 60 of each of the 10 best photographs, protecting them with the new preservation system, and The Franklin Mint went ahead to successfully market the series. Twenty+ years later, the photographs show no sign of fading. Segel is now relatively inactive as a photographer, and he has long since abandoned darkroom processing, but has become proficient with Photoshop and other digital photo processing programs.
NSTL -- Pioneering With the Development of Personal Computers
Segel had always been fascinated with computers, going back to the earliest days of the industry. When the IBM Personal Computer was introduced in 1983, he bought the first PC delivered in the Philadelphia area. After discovering that the initial software left a lot to be desired, he founded Software Digest and National Software Testing Laboratories (NSTL), which quickly became the world’s leading independent PC software testing organization. NSTL test methodologies quickly became the worldwide standard. The company was subsequently acquired by McGraw-Hill and eventually merged into a competitive testing organization.
QVC - Segel's Master Achievement
In 1986, Segel noted the success of the pioneering home shopping program, Home Shopping Network. After watching the primitive nature of its programming at that time, he immediately recognized that televised home shopping could be made significantly more appealing in a number of ways. So he then started QVC Network (standing for Quality-Value-Convenience). Within three months after starting the company, Segel raised over $20 million in an IPO. With a novel plan to sign up cable companies by awarding them convertible preferred stock in proportion to the number of homes to which they would carry the QVC program, Segel initially lined up over 7 million TV homes for the network’s launch. The first broadcast, five months after the company was started, was carried by 58 cable systems in 20 states.
Segel introduced numerous innovations to televised home shopping, such as accurately describing products rather than hyping them, full disclosure of shipping and handling charges, and imbuing all employees with the mission to “give customers more than they expect.” In its first year, QVC registered sales of $112 million — a record for first-year sales of a new public company that had not taken over an existing business. In 1989, Segel decided that the next important step in expanding QVC's sales would be to acquire Cable Value Network (CVN). Supported by Telecommunications, Inc.(TCI), the nation’s largest cable operator at the time, CVN had become the second largest televised shopping network, not quite as large as HSN but twice the size of QVC. Subsequently, CVN was acquired by QVC for $380 million, primarily with financing provided by banks and cable operators.
The purchase of CVN was described as a python swallowing an elephant, resulting in an initial quarterly loss of $17 million. However, the calculated gamble to establish QVC’s market leadership eventually paid off. In 1986 there were 17 other new shopping channels trying to improve on the HSN model. Only one – QVC-- would survive into the 90’s. In 1995, Comcast Corporation and TCI acquired QVC. TCI’s interest was subsequently acquired by Liberty Media, and Liberty Media eventually bought out Comcast’s 57% interest for nearly $8 billion.
QVC is now the largest television network by revenue, broadcasting live to 200 million homes in the USA, England, Germany, Japan and Italy, with over 16,000 employees and more than 10 million customers. In 2016, QVC’s annual sales were around $9 billion. It became nearly three times as large as HSN, which was merged with QVC at year-end 2017 under the banner of Liberty Interactive (NASDAQ: QVCA). After the merger, QVC became the third largest e-commerce company in the world, behind only Amazon and WalMart.
Segel retired as chairman of QVC in 1993, continuing as an executive consultant to QVC management until 2013. He still retains the title of Founder and Chairman Emeritus of QVC.
Public Service Activities
Segel’s public service activities have been concentrated in the field of international diplomacy. In 1971, he was elected chairman of the Board of Governors of the United Nations Association of the USA. And, in 1973, President Ford appointed him as a member of the U.S. Delegation to that year’s United Nations General Assembly, where he served under U.S. Secretary of State Henry Kissinger. During that term, Segel made a landmark speech at the United Nations General Assembly condemning apartheid in South Africa, which presaged a shift in U.S. policy toward a more active role in ending apartheid. He also organized a national campaign of The Advertising Council to improve public understanding of the United Nations, he chaired a national conference on the United Nations for the American Society of Newspapers Editors, and he testified in support of the United Nations before the U.S. Senate Foreign Relations Committee. During Segel’s involvement with the United Nations in the 60’s and 70’s, he met with numerous ambassadors, several foreign leaders and three U.S. presidents.
In 2011, Segel collaborated with Florida entrepreneur Jodi Dery in the development of LifeWithSiri.com, which produced the best-selling eBooks about how to most effectively utilize Siri, the voice-recognition "personal assistant" on iPhones. Also in 2011, he established Bocapital LLC, a private equity fund in Boca Raton, Florida, which then became the principal investor in Cloud Ten LLC, the developer of an innovative group of beauty salons in South Florida. That led to the development of a new customized hair care, which in turn led to the creation of ProfilePRO LLC and two new e-commerce sites -- including HairRx.com and Cloud10Hair.com.
Since 2012, Segel also has maintained a substantial financial interest in Mollydooker Wines of Australia.
In December 2017, Segel led a group of private investors to acquire a minority interest in IoT Defense Inc, the producers of an innovative new system to protect residences from the growing threat of hackers invading home wifi systems through IoT (Internet of Things) devices. The company's first product -- RATtrap (RemoteAccessTrojanTrap) -- won the Grand Award from Popular Science Magazine for 2017's Most important Innovation in Security. As of the beginning of 2018, Segel is focusing mostly on assisting the co-founders of IoT Defense Inc in marketing and developing related products.
Segel was born in 1931. His principal residence is in Delray Beach, FL, with a seasonal residence in Gladwyne, PA. He has been married since 1963 to Doris Segel. They have three grown children, six grandchildren and four great-grandchildren.
BUSINESSES STARTED BY JOE SEGEL
1947 Eastern Advertising Co., Inc. -- advertising specialties.
1949 Desk-Sign Manufacturing Co., Inc. -- personalized desk signs.
1950 Magicard Co., Inc. -- promotional mailing pieces.
1950 The Advertising Specialty Institute, Inc. -- central information service.
1953 Colorcrafters, Inc. -- pioneer in full-color printing.
1954 Selective Gift Institute, Inc. -- business gift selection service.
1960 National Business Services, Inc. -- consolidation of last 3 businesses.
1961 Gem Publishing Co., Inc. – books featuring humorous sayings.
1962 Jordan-Edwards Co., Inc. -- pocket appointment and record books.
1964 National Commemorative Society, Inc. -- commemorative medals.
1964 The Franklin Mint (initially called General Numismatics Corporation).
1965 Britannia Commemorative Society, Inc. -- commemorative medals.
1970 Le Mirador, S.A. -- Swiss resort hotel, spa and conference center.
1975 Presidential Airways, Inc. -- private jet and helicopter charter service.
1980 RateSearch Corporation -- computerized air freight rate analysis service.
1981 PermaColor Corporation -- systems to preserve color photos.
1983 Software Digest, Inc. -- PC software rating reports.
1983 National Software Testing Laboratories, Inc. -- PC software testing.
1986 QVC Network, Inc. – televised home shopping.
1997 International Skincare Research, Inc. – Le Mirador skincare products.
2009 GoBYO.com – guide to restaurants that permit BYO.
2011 Bocapital LLC - private equity fund.
2013 Cloud Ten LLC - hi-tech beauty salons.
2014 ProfilePRO LLC - customized hair care systems.