Daily News
From Home Furnishing Business
Nova LifeStyle Embarks on E-Commerce Platform for China
April 9,
2014 by in Industry, Internet 
Home furnishings supplier Nova LifeStyle (NASDAQ: NVFY) is working on development of an e-commerce platform aimed at taking advantage of increased online demand for home furnishings in China.
According to a McKinsey Study in June 2013, more than three-fourths of China's urban households will approach middle-class status on a purchasing-power-parity basis in less than a decade, and an IBISWorld U.S. Furniture Industry Report states that furniture e-commerce sales in China rose 60 percent in 2013.
Nova LifeStyle is funding the development of the project, which will include a dedicated e-commerce Web site offering furniture and home furnishings, and provide leading global vendors the opportunity to specifically target the China market.
The company expects the e-commerce platform will generate additional revenue streams for Nova LifeStyle through advertising revenue from participating vendors, ordering fees for transactions, and incremental sales of Nova branded products by increasing traffic to its approximately 100 franchise stores in China, which will serve as logistic centers.
The Hong Kong Furniture Association has committed to participate in the project. The association's 200 members include the majority of the top 100 furniture brand manufacturers in China.
Mobile Telcom Network (Holdings) Ltd., will develop, launch and support the platform, which is expected to be completed in three to five months. MTel's client list includes major global e-commerce platforms such as eBay, Yahoo and Amazon. MTel also has strategic partnerships with major mobile network operators such as China Telecom and SingTel and handset manufacturers such as Nokia and Samsung
"We are very pleased to begin the development of our e-commerce platform," said Tawny Lam, president of Nova LifeStyle. "In partnership with HKFA members and other leading furniture brands we believe we can fill a niche that is yet unserved, and drive sales of our products in China. Increasing disposable income levels in the middle class in China has led to a growing appreciation for modern furniture design and style. This, coupled with rapidly increasing online purchases, provides significant long-term opportunities for us to grow our business and market share in China, one of our key growth initiatives."