As the first such business of its kind in China, the first phase investment from Office 1 Superstore has surpassed 100 million yuan (US$12 million). Its office building takes up a floor area of 6,000 square meters.

According to Ye Chao, an official with the municipal foreign economic relations and trade commission, the office product chain store is still a novelty to Shanghai residents. Not only does Office 1 offer stationery, but it also provides companies with small business machines, office furniture and even interior design services.

Glenn Reed, vice-president of Office 1 Superstore International, added, "Apart from the products we offer, our way of conducting business is also unique. We offer one-stop service through various ways like self-service superstores, direct mail, contract delivery and e-business."

Officials said following Office 1 Superstore's China Headquarters establishment in Shanghai, the purchasing amount will increase all over the country.

Reed announced that the group will purchase about US$300 million products in China annually and distribute them to over 300 stores in 20 countries.

"Besides the quality of suppliers in China, the reduction on tariffs after China's entry into the World Trade Organization and the huge market potential here are the other two important reasons to bring Office 1 Superstore into China," Reed said.

Peng Yong, general manager of the China Headquarters of Office 1 Superstore, said: "The Chinese market for stationery alone will reach over 60 billion yuan (US$7.2 billion) each year. Such a prosperous market will allow our group to open at least 500 stores in China in the next three years."

Peng estimated that the market for office products in Shanghai will exceed 1.2 billion yuan (US$145 million) in the next two years, and according to the business plan, Shanghai will have over 20 stores in the Office 1 Superstore chain.

At least 600 job opportunities will also be created for Shanghai residents, Reed said.

(China Daily May 28, 2002)