QVC Announces China Joint Venture
Strategic Relationship with Beijing-based China National Radio Represents Sixth Global Market for QVC
WEST CHESTER, Pa., March 20, 2012 /PRNewswire/ -- 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.
QVC, Inc., a wholly owned subsidiary of Liberty Interactive Corporation (Nasdaq: LINTA), is the world's leading video and e-commerce retailer. QVC is committed to providing its customers with thousands of the most innovative and contemporary beauty, fashion, jewelry and home products. Its programming is distributed to approximately 195 million homes worldwide. The company's website, QVC.com, is ranked among the top general merchant Internet sites. With operations in the United Kingdom, Germany, Japan and Italy, West Chester, Pa.-based QVC has shipped more than a billion packages in its 25-year history. QVC, Q, and the Q Ribbon Logo are registered service marks of ER Marks, Inc.
CNRS, a wholly owned subsidiary of CNR, is one of China's leading TV shopping companies. Founded in September 2009, CNRS is committed to providing a full-stop shopping experience for its customers. The company broadcasts and markets its products on cable television country-wide with approval from China's State Administration of Radio, Film and Television. As of February 2012, the CNR Mall TV shopping channel is on air in 71 cities covering 13 provinces in China and its programming reaches approximately 35,000,000 homes, with a membership of 500,000. CNRS aims to set the benchmark for value, ethics and integrity for the Chinese multimedia retail market.
SOURCE QVC, Inc.
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