Japanese bargain store Daiso has partnered with Hong Kong-based Four Seas Group to tap into the Chinese market.

The joint venture has opened its first two stores in Guangzhou. Daiso sells items like food, utensils, stationery, health and beauty products and toys, most at a single price point of 10 yuan (US$1.57).

The business plan includes operating three to five stores before the year-end, 15 to 20 by 2013 and 100 within five years in Guangdong.

“Five to 10 years ago, people weren’t impressed by a 10-yuan price tag. But with inflation and higher disposable incomes, 10 yuan now is a reasonably good value,” said GM Jason Tse, who expects the chain will be successful in China.

Daiso is owned by Daiso Sangyo Corporation headquartered in Hiroshima Prefecture. Its store network numbers 4000 stores worldwide, including 3200 in Japan.

GB