B&Q, which specializes in home supply, operates four stores in China, three of them in Shanghai. The Hutai branch in the northeast of the city was the first to open in 1999.

"We have learnt a tremendous amount in a very short time and that learning is now going back into the UK to enhance what is already an established market leader," Strickland said.

"Coming to China obviously meant a lot of differences culturally and in terms of shopping behaviour. The do-it-yourself market in China is small, with fragmented retail outlets and little history of convenient, one-stop shopping.

"It is actually a BIY market - buy-it-yourself - as new apartments tend to be sold as empty shells that need to be fitted out entirely by a labourer or appointed middleman."

The company decided to alter its business model and offer a more personal service compared to Europe, encompassing a wider range of products and its own design team who visit customers' homes and advise on decoration.

"Customers saw us as pioneers and asked for inspiration in creating a home, so we adapted to meet their needs," Strickland said.

The third Shanghai store opened in Yangpu in August is a product of such adaptation as it is the largest B&Q in the world - a two-storey building interlinked by the longest travelator (capable of carrying trolleys) in China.

A new range of paint sold in the stores, originally imported from Europe, is now manufactured in China to meet specific requirements, and showrooms take greater precedence than in Britain with modern artistic furniture on display.

Other variations include less focus on garden centres, which are a major part of a British store but play a small role in Shanghai with its limited space, and a concentration on wooden flooring which sells far better in China.

Strickland said: "Shanghai has led the way in size of store and enhanced range that will be copied in the UK. We cover the whole home whereas in the UK it is just DIY and building materials."

With an estimated 400 million households in China, home renovation offers vast opportunities for growth. Figures show an increase in home improvement business from 56 billion yuan (US$6.76 billion) in 1998 to 193 billion yuan (US$23.31 billion) in 2000.

In the next five years B&Q plans to operate 58 stores in China, with regional offices being set up in Beijing and Shenzhen, from which new store openings will be co-ordinated for North and South China respectively.

"If you look at GDP forecasts, China has the strongest growth potential in the world," said Strickland.

"Our target customers are a young, new breed of Chinese people, culturally revolutionized and open-minded. We see a huge future in China."

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