And as foreign retailers like Best Buy and Wal-Mart Stores Inc. make inroads into their home territory, local retailers are fighting back. China's No. 1 consumer electronics retailer, Gome Electrical Appliances Holding Ltd. made an offer in July to buy Hong Kong-listed China Paradise Electronics Retail Ltd., the country's third largest seller of electric appliances.

Best Buy is concentrating on researching the market and recruiting and training staff before making its next move in China.

"We are still learning about this marketplace," Willett said. "The Chinese consumer is pretty unforgiving if we get it wrong."

Market research shows Chinese consumers are spoiled for choice, facing a bewildering array of products in almost every area.

Willett hopes Best Buy will win over picky Chinese customers with pleasant outlets and helpful, dependable service.

"Best Buy is very much about service," he said. "When we sell something we make you a promise that it will work, we'll warrantee it and teach you how it works."

The company is not alone in attempting to win an edge over local competitors with a more positive shopping experience. In July, Motorola Inc. opened a slick new flagship store, in the same building in Xujiahui where Best Buy's outlet will be, where shoppers can try out all features and accessories on its cell phones and other products ¡ª not an option in the typical Chinese electronics bazaar.

Best Buy, which has outlets in Canada, is looking beyond North American and China to other markets, Willett said. But he denied reports the company was discussing potential acquisitions as it mulls further overseas expansion beyond Canada and China.

"We are looking at other countries, though I'm not going to talk about which ones," he said. "We're not in talks with anyone today about buying anything today."

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