QVC, the home shopping TV channel of
Liberty Interactive Corp.
), is benefiting from the surge in online sales. Management
stated that its online sales will constitute more than 50% of the
total revenue in the U.S. by 2014. The major thrust comes from
the growing adoption of high-end smartphones in the U.S. QVC is
about to introduce a synchronized content for its mobile
applications. This feature will enable smartphone users to get
real time information about a product which is broadcast on the
TV show. This will promote online sales further.
According to a report of Internet Retailer, after
), QVC was the second-largest e-commerce retailer in the U.S. in
2012. QVC has become the market leader in the $8 billion TV
home-shopping business commanding an estimated 69% market share,
far ahead of its nearest rivals,
ValueVision Media Inc.
). The TV home-shopping business has a stable customer base,
generally constituted of women.
Liberty Interactive's Internet operations are primary growth
engines. We expect QVC to continue leveraging its brand to
rapidly grow its Internet operations. Exposure to international
markets such as Japan, Germany, Italy, and the U.K. will enable
QVC to achieve a high rate of growth. QVC is gradually expanding
its presence in these developed markets.
QVC entered into a definitive agreement to form a joint
venture with China National Radio (CNR), the government
controlled radio division of China. The joint venture is known as
"CNR Home Shopping Co. Ltd." QVC holds a 49% stake of this
venture and China National Radio controls the remaining 51%. The
joint venture will aggressively operate a multimedia retailing
business in China. Liberty Interactive currently has a Zacks Rank
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