A Hike in QVC's Online Sales - Analyst Blog

By
A A A
Share |

QVC, the home shopping TV channel of Liberty Interactive Corp. ( LINTA ), 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 Amazon.com Inc. ( AMZN ), 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, HSN Inc. ( HSNI ) and ValueVision Media Inc. ( VVTV ). 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 #3 (Hold).



AMAZON.COM INC (AMZN): Free Stock Analysis Report

HSN INC (HSNI): Free Stock Analysis Report

LIBERTY M INT-A (LINTA): Free Stock Analysis Report

VALUEVISION CLA (VVTV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AMZN , CNR , HSNI , LINTA , VVTV

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

2014's Best and Worst Jobs
2014's Best and Worst Jobs          

Stocks

Referenced

Most Active by Volume

132,019,746
  • $16.39 ▲ 2.44%
106,930,017
  • $59.09 ▲ 0.34%
91,643,760
  • $3.09 ▼ 1.12%
79,029,415
  • $85.02 ▲ 0.29%
46,131,885
  • $40.18 ▲ 3.74%
42,395,508
  • $7.06 ▼ 0.56%
40,101,748
  • $26.76 ▲ 0.75%
39,547,363
  • $13.33 ▼ 3.96%
As of 4/15/2014, 04:02 PM