Gome Home Appliances, China's largest electronic appliance retailer, will open an outlet in Hong Kong, its first outside the Mainland.

The $50 million investment will create about 150 jobs, and confirms Hong Kong's status as a leading Asia-Pacific business and consumer hub.

The Mong Kok outlet covers 2,500 square metres and will open for business in November.

Gome's Chairman Wong Kwong-yu said the company aims to capture 30% of the Hong Kong market share within the next few years. He said the outlet will be a stepping stone for building Gome's worldwide network.

"We will replicate our success on the Mainland 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 appliance market and build Gome as a reputable quality brand in Hong Kong," he said.

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

InvestHK Associate Director-General of Investment Promotion John Rutherford said Gome's investment illustrates Hong Kong's appeal as a springboard to regional and global markets.

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

Gome was founded in Beijing in 1987. It is the largest chain store for household electrical appliances in the Mainland, consisting of 150 superstores in 21 regions employing over 8,000.

Last year Gome ranked third amongst the Mainland's top 100 chain stores and as the top retail chain for household electrical appliances. Annual sales amounted to over RMB10 billion in 2002.