 Japanese Group to open new chain stores in Guangdong |
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Japan-based Jusco Stores (Hong Kong) Co. Ltd. is to open its six and seventh chain stores in Zhongshan City and Foshan City of southern China's Guangdong Province this July and next year respectively.
James K.Ishii, Director of Jusco Stores (Hong Kong) Co. Ltd. said recently at a press conference that with the existing 5 general merchandise stores in Guangdong Province, his company has already attended an established market share in the Chinese mainland.
Soul M.T.Lam, south China business development director of the company, believed Jusco's chain stores in southern China have more profit potential than that of chain stores in Hong Kong in the coming years.
The Japanese retailer opened three chain stores in Dongguan, Zhuhai and Shenzhen in 2002, which have contributed much to the sales of Jusco. Jusco's sales between September and December last year recorded a growth of 7.4 percent.
However, the retail sales in Hong Kong's eight chain stores witnessed a slight drop during the lunar new year period, as Jusco's customers increased their spending on comparatively low-price items such as food and clothing, coupled with the slow economic growth in Hong Kong.
As many other Japanese firms, Jusco has transferred its strategic development focus to southern China, lured by China's big consuming market.
Shigeru Kimura, director general of Japan External Trade Organization, Hong Kong (JETRO HK) said in an interview with the press currently that China will witness at least another 10 years of fast economic growth and more Japanese SMEs are seeking opportunities to invest in southern China, especially in Guangdong Province.
According to Shigeru Kimura, 54 percent of the total Japanese overseas investment was in eastern and southern China in 2001 and the figure was estimated to go up in the year of 2002.
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