QVC is forming a joint venture with Beijing-based China National Radio (CNR), China’s government-owned radio division, to jointly run a home shopping network, CNR Mall TV.
The idea, according to a press release Tuesday, is to leverage the strengths and resources of each company.
“QVC has long recognized the great potential of having a retail presence in China,” QVC CEO Mike George said in a canned statement. “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. 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.”
And CNR Mall Chairman Dong Tieming added his two cents.
“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,” he said.
The joint venture, CNR Home Shopping Co.(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 about 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.
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 abut 35 million homes, with a membership of 500,000.