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Confirming Hong Kong's status as a leading business and consumer hub in the Asia Pacific, China's largest electronic appliance retailer, Gome Home Appliances, is opening in Hong Kong - its first store outside the Mainland.

Invest Hong Kong has assisted Gome through its business planning process, recognising the importance of this HK$50 million investment project, which will create about 150 jobs for local people. The company's announcement of its new venture is likely to have a positive effect in drawing more mainland retailers to expand to Hong Kong.

The store in Mongkok, covering an area of over 25,000 square feet (about 2,500 square metres), will open for business in November 2003.

According to Gome's Chairman, Mr Wong Kwong Yu, the retailer's success in Guangzhou and Shenzhen has laid the foundation for its expansion into the Hong Kong market.

"We are very pleased to establish our first foothold in such an international metropolis, aiming to capture 30% of the market share within the next few years. This store will serve as a stepping stone for building Gome's worldwide network," said Mr Wong.

"We will replicate our success in mainland China by bringing Gome's sophisticated and systematic business model to our Hong Kong operations. This will help us leverage the retail experience we gained in the mainland's home appliances market and build Gome as a reputable quality brand in Hong Kong.

"We will also benefit from the local support services and the international sales and marketing expertise in Hong Kong," added Mr Wong.

The Associate Director-General of Investment Promotion at Invest Hong Kong, Mr John Rutherford, said more and more international and mainland retailers were entering the Hong Kong market, opening additional shops or upgrading their presence by setting up large-scale flagship stores.

"Gome's investment illustrates Hong Kong's appeal as a springboard to regional and global markets, as well as providing access to experienced local and multinational business partners and service providers. Hong Kong's multicultural consumer market also provides an excellent testing ground for mainland products.

"By coming to Hong Kong," said Mr Rutherford, "Gome can make use of all the advantages our city provides as a platform for retail, distribution and management. It is an appreciation of the opportunities our city offers to retailers and other companies from the Mainland."

"We are very pleased to learn that Gome has plans to open three to five more chain stores here in the next two to three years, demonstrating their confidence in the Hong Kong market."

Gome Home Appliances was founded in Beijing in 1987. It is the largest chain store for household electrical appliances in Mainland China, consisting of 150 superstores in 21 regions. The total number of staff exceeds 8,000. In 2002, Gome was ranked third among the "Top 100 China Chain Stores" and as the top retail chain for household electrical appliances in China. Annual sales amounted to over RMB10 billion in 2002.

Invest Hong Kong's Trade-Related Services Sector team and its Mainland team targeting enterprises headquartered in Beijing have rendered assistance in Gome's move to Hong Kong.

Ends/Tuesday, October 28, 2003

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