QVC Inc., the world's largest TV shopping retailer, will enter the Japanese market next year through a joint venture with trader Mitsui & Co., executives of the two firms announced on Monday.
The joint venture, named QVC Japan Inc., will be set up next month with capital of 5 billion yen. QVC of the United States will finance 60 percent of the amount, and Mitsui will bear the remaining.
"Establishing a new market is a real challenge. It requires much capital, a good partner and lots of attention to details," said William F. Costello, chief financial officer of QVC.
QVC Japan will start broadcasting its shopping channel in Japan next April through Sky PerfecTV! communication satellite service operated by Japan Digital Broadcasting Service Inc. and hopes to expand the service later to cable TV networks.
Hayashi Sasaki, who will become president of the proposed joint venture, hopes to make 20 billion yen in sales in five years after launching the service.
The proposed joint venture will employ QVC's expertise in fields such as producing TV programs and a marketing method based on a customer database, Sasaki said.
QVC was founded in 1986 and had about $2.8 billion in sales worldwide in 1999. The firm operates TV shopping service also in Germany and Great Britain.