Suning Appliance, the mainland's second-largest home-appliance retailer by outlets, will make its first foray into the overseas market by opening a store in Hong Kong this year.
The plan, a year ahead of schedule, was part of the retailer's ambitious expansion target of opening 200 outlets this year, a company official said yesterday.
If the target is reached, Shenzhen-listed Suning will have 1,050 stores by the end of the year.
Zhang Jindong, the president of Suning, had told suppliers the company was seizing opportunities that had emerged from the economic downturn as pressure from store rents and labour costs lessened, and competition had weakened.
'To become a global player has always been Suning's goal and the opportunities from the current economic downturn will help us to achieve the target,' the official said.
'Hong Kong consumers have a similar spending pattern as mainland consumers, so the city is our natural choice as the starting point to tap the overseas market.'
But fierce competition in Hong Kong could pose challenges for Suning. Tai Lin Radio Service, one of the city's oldest appliance chains, closed in October last year under the weight of a HK$100 million debt.