QVC starts new venture in China

WEST CHESTER, Pa. — QVC is building a presence in China through a new joint venture with Beijing-based China National Radio (CNR), China's government-owned radio division. Through this partnership, 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."

The joint venture, CNR Home Shopping Co. Ltd. (CNRS), will be headquartered in Beijing. QVC will own a 49% stake in CNRS, 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.