LOS ANGELES - Nova LifeStyle, Inc. (NASDAQ-GM: NVFY), a U.S.-based fast growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced it has commenced development of its e-commerce platform designed to capitalize on a growing middle class and the rapidly growing online demand for furniture and 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% in 2013.
Nova LifeStyle will fund the development of the project, which will include a dedicated e-commerce website exclusively offering furniture and home furnishings, and provide leading global vendors the opportunity to specifically target the China market. The Company anticipates that 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 Company is pleased to have received a commitment to participate in the project from The Hong Kong Furniture Association ("HKFA"), whose 200 members include the majority of the top 100 furniture brand manufacturers in China. The Company has chosen mobile technologies pioneer, Mobile Telcom Network (Holdings) Ltd. ("MTel"), to 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 http://www.mtelnet.com/about-us/. The Company expects that MTel's support will allow them to use these major mobile networks to optimize promotion of the Company's e-commerce platform to the end consumer via smartphones and other mobile devices in the future.
"We are very pleased to begin the development of our e-commerce platform," said Tawny Lam, President of Nova LifeStyle, Inc. "In partnership with HKFA members and other leading furniture brands we believe we can fill a niche that is yet un-served, 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."
About Nova LifeStyle, Inc.
Nova LifeStyle, Inc., a NASDAQ Global Markets Exchange listed company headquartered in California, is a fast growing, innovative designer and manufacturer of modern LifeStyle furniture; primarily sofas, dining rooms, cabinets, office furniture and related components, bedrooms, and various accessories in matching collections. Nova's products are made in the US, Europe, and Asia and include LifeStyle brands such as Diamond Sofa, Colorful World, Giorgio Mobili, Nova QwiK, and Bright Swallow International. Nova's products feature urban contemporary styles that integrate comfort and functionality incorporating upscale luxury designs appealing to LifeStyle-conscious middle and upper middle-income consumers in the U.S., China, Europe, and elsewhere in the world. To learn more about Nova LifeStyle, Inc., please visit our website at www.NovaLifeStyle.com.
Source: Nova LifeStyle
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