Liberty Interactive’s QVC is expanding into China. Outside the US, the video and e-commerce retailer already has international operations in the UK, Germany, Japan and Italy. Now, via a joint venture with China’s government-owned China National Radio, it will bring its beauty, fashion, jewelry and home products to a potential 35 million homes. The partners will together operate multimedia retail business CNR Home Shopping Co Ltd through the CNR Mall TV shopping channel and its e-commerce website. To be headquartered in Beijing, the joint venture is subject to regulatory approval. A full press release follows:
West Chester, Pa. (March 20, 2012) – Today, QVC, a global leader in video and e-commerce retail, announced that it has signed a definitive agreement to form a joint venture with Beijing-based China National Radio (CNR), China’s government-owned radio division. As partners in a joint venture, CNR and QVC will jointly operate a multimedia retailing business in China through the CNR Mall TV shopping channel and its e-commerce website (www.CNRMall.com), leveraging the strengths and resources of each company.
“QVC has long recognized the great potential of having a retail presence in China. We are pleased to be able to enter this dynamic market with a strong partner. QVC’s track record of success in the United States, United Kingdom, Germany, Japan and Italy proves that our business model can thrive across many borders,” said Mike George, QVC’s president and CEO. “CNR Mall is one of the leaders in multimedia shopping in China and shares many important values with QVC. Both companies focus on providing great customer value and are committed to service excellence.”
“By combining our knowledge of the digital shopping market in China and its consumers with QVC’s global experience and know-how in multimedia retailing, we have the right formula in place for our new joint venture to succeed,” said CNR Mall Chairman and CEO Dong Tieming.
The joint venture, CNR Home Shopping Co., Ltd. (CNRS), will be headquartered in Beijing. QVC will own a 49 percent stake in CNRS, and CNR will own the remaining 51 percent. CNRS will provide merchandise development, logistics, delivery, call center and other related services to CNR Mall. The CNR Mall TV shopping channel, which will continue to be wholly owned by CNR, reaches approximately 35 million homes within China.
The new joint venture team will be co-led by a global team of experienced executives from QVC and senior leaders from CNR Mall. The closing of the transaction is subject to various conditions, including approval from China regulators.
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