WHO'S WHO IN THE SOUTHWEST: Zappos.com leader sees light in tough times

Jacob Kepler/ViewVegas Young Professionals named Zappos.com chief executive officer Tony Hsieh, 34, its 2008 Mover and Shaker of the Year. Advertisement

While most chief executive officers are clinching their wallets on the brink of economic panic, Tony Hsieh sleeps soundly.

Although this year has been the most financially unpredictable year in the history of his company, Zappos.com, he said it's also been the most successful.

Under his leadership, Zappos.com's gross sales have climbed from $1.6 million in 2000 to $840 million in 2007. He expects the company's gross sales to top out at $1 billion this year.

Vegas Young Professionals noticed Hsieh's success among its 1,000 members and named him its Mover and Shaker of 2008. Vegas Young Professionals, a branch of the Las Vegas Chamber of Commerce, gives the award each year to businesspeople between 21 and 39 years old who have done exceptionally well in their careers.

And Hsieh is definitely an exception. The soft-spoken 34-year-old sits in a cubicle alongside his employees. He ducks beneath jungle-like foliage to get to his desk (each row of cubicles is decorated in its own theme).

Hsieh graduated from Harvard University in 1995, co-founded Internet advertising network LinkExchange shortly after and sold it to Microsoft in 1998 for $265 million. During a year of working in investments, he heard about a new shoe Web site, then dubbed ShoeSite.com, that was run from a small office in San Francisco. Hsieh invested in the budding company and soon joined the Web site's founder, Nick Swinmurn, an even younger entrepreneur than Hsieh, to run the site as a team. The company moved its business to Henderson four years ago in search of more employees eager to serve.

"From the start, we wanted our company to be a service company that happens to sell shoes," said Hsieh, a Southern Highlands resident. "Thirty years from now, we could have an airline that's all about customer service. We want customers to buy from us for the service, no matter what product we're selling."

Did you ever think you'd be chief executive officer of a billion-dollar corporation at the age of 34?

No. I've always wanted to start a company, so I've always been involved in a lot of different things throughout my life. Like, I had a pizza business in college, and I started LinkExchange. When you're starting your own business, you get to be a lot more creative. I don't think I'd do very well in a standard 9-to-5 job.

Has the slumping economy touched Zappos.com?

E-commerce overall has still grown, so it's definitely easier for us than others. I guess the thing is, if it was a better economy, we'd probably be growing a lot faster.

Why did you choose to move the company to Henderson?

In San Francisco, it's hard to find people who want to do customer service as a career -- for most, it's a temp job. Where as in Vegas, there are a lot of other call centers, it's a 24-hour city and the cost of living is much lower, so people can actually build a career in customer service and still own a house.

Why do you think you were named Vegas Young Professionals Mover and Shaker of 2008?

I think part of it is, we've created a lot of jobs in the area. When we first moved here in 2004, we had 70 employees, and we have 10 times that now. I think the other part of it is that the mayor has always wanted to bring more technology companies to the area so that Las Vegas doesn't have to rely on gaming.

Anything new at Zappos.com that customers can watch for?

Most people know we're about shoes, but we're making a big push to sell clothing, which a lot of people aren't aware of yet. We also sell handbags, backpacks and even housewares, electronics and cookware. We have close to 2,000 different products on our site. We have over 4 million items in our warehouses in Kentucky, which combined, are as big as 17 football fields.

Contact Southeast and Southwest View reporter Danielle Nadler at dnadler@viewnews.com or 224-5524.

TONY HSIEH AT A GLANCE

* Age: 34

* Years in Las Vegas: 4

* Family: Two younger brothers, who also work at Zappos.com

* Factoid: He often starts his morning with a Red Bull and a Slim Jim.