QVC, China National Radio align for new home shopping company
Casual Living Staff -- Casual Living, March 20, 2012
West Chester, Pa. - QVC is further cementing its international presence via a new venture in China.
The multichannel retailer has signed a definitive agreement to form a joint venture with Beijing-based China National Radio, China's government-owned radio division, to together operate a multimedia retailing business in China.
This new venture will be executed through the China National Radio (CNR) Mall TV shopping channel and its e-commerce website, www.CNRMall.com, "leveraging the strengths and resources of each company," QVC noted.
"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 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."
Added CNR Mall chairman and ceo Dong Tieming: "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."
The joint venture, CNR Home Shopping Co. Ltd. (CNRS), will be headquartered in Beijing. QVC will own a 49% stake and CNR will own the remaining 51%. 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.