Shanghai, People's Republic of China — At 10,000 square meters on four floors, the recently opened Victoria Fabric Depot is believed to be the largest fabric retailer in China today with 250 employees. The importance of the store to Shanghai and the country is underscored by the attention its ribbon-cutting ceremony received. Government officials attended and local televisions covered the event. The store, with separate warehouse and sewing facility is located near a new metro train station stop in the Hongquiao area on Kaixuang Road in west Shanghai – a rapidly changing section of the city. This first outlet is the prototype of what owners Wayne Lin and Doris Deng hope will eventually be four stores in Shanghai generating over $20 million at retail. First year target sales of $5 million are expected by Lin, principal of A Plus International Inc., a Chino, Calif., investment firm. A second store is being planned in the Paudang section in east Shanghai. Deng also announced that Shanghai Victoria International, a new division, will exhibit at Heimtextil 2000 for the first time. Chinese-made fabrics will be offered to the world market. By offering a wide breadth of goods, the Depot can deliver quickly. ''All of our buyers have one characteristic in common – they want the goods instantly,'' said Doris Deng. ''Contractors purchase fabric at last minute. Retailers don't want to take any risks to keep any stocks in their warehouse. Therefore, they purchase very small quantities and always expect distributor to keep stock for them. But imported fabric takes much more time for transportation. ''Many designers, contractors and retailers come to Victoria for the imported fabric,'' Deng said. ''In order to provide in-time delivery for our buyers, we decided to have more stocks to guarantee the in-time delivery. The Depot will service high end customers, but it will also have in stock goods from many countries for middle and low end buyers, who are becoming more frequent in China. ''The Chinese government, in order to inspire consumption, has launched some policies and tried to encourage people to buy real estates. It has lowered price, tax and it has provided loans. Another very important policy is the exchange of new houses for old ones. The real estate market is moving. Now in China,'' Deng said, ''not only the rich people can afford new houses but the working class as well. The demand for products of middle and low-price range is getting bigger and bigger. The first floor of the showroom is reserved for high-end product retailing for $20-$40; second floor is middle end priced at $5-$10; and the third floor is geared to low prices and closeouts at $3-$5. The fourth floor was opened to cater to the designer/contract trade. A Victoria Fabric Depot upholstered furniture line was also featured on each floor by price point, from $400 to $1,000 for three piece suites. Another floor features an area where customers can become wiser shoppers. ''The Fabric Bar educates people by illustrating the knowledge of weaving, dyeing and how to tell the good and bad quality, teaching people sewing, etc.,'' said Deng. A Designer Salon occupies one floor of the Depot. ''As you know, China has many many projects going on, and designers are playing very important role,'' Deng said. ''We are going to provide better service for all these professionals. In this Designer Salon, we have added top lines.'' Deng said that she is still looking for the suppliers. F&FI