Photo shows the Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin (left); President and CEO of BALS Corporation, Mr Fumio Takashima

The store targets the young urban generation, offering casual stylish home furnishings, decorative accessories and personal care products in vibrant colours and simple silhouettes.

President and CEO of BALS Corporation, Fumio Takashima, said Hong Kong's mature and sophisticated market is one of the key attractions for BALS. "People here have relatively high levels of disposable income, combined with a high expectation for both quality and style when shopping for home furnishings."

"Hong Kong is also geographically very important because of its proximity to China where we procure a significant amount of our products," he added. Mr Takashima noted that Hong Kong's location and excellent business infrastructure make it an ideal gateway to the mainland market. BALS plans to establish retail operations in the Chinese mainland in about two years.

There are also plans to open four more stores in Hong Kong over the next two years. "The current situation has not changed our expansion plans. Our long-haul projection has never been affected by such transient affairs as the recent Sars outbreak," added Mr Takashima.

Simon Galpin, Associate Director-General of InvestHK, who officiated at the opening ceremony, said: "The fact that Franc franc is opening today in Hong Kong demonstrates the receptiveness of local consumers towards buying new and different products. This new store and the company's plan to add another four outlets is a clear vote of confidence in Hong Kong, the retail capital of Asia."

The company operates more than 57 shops in Japan, and employs more than 1,000 staff. Its planned investment for the five shops in Hong Kong totals HK$30 million (US$3.8 million)