With lingering recessions at home, global appliance retail chains are rushing to cash in on the China bonanza.

Japan's top electronics retailer Yamada Denki Co. Ltd. recently announced the opening of its second China store in Tianjin, while the U.S. behemoth Best Buy Co. Inc. plans a store in Suzhou, extending its China presence beyond Shanghai. Even more ambitious is Germany's Metro Group that aims to open more than 100 appliance outlets within five years.

It is not difficult to see why they are pouring in—China's appliance sector is bursting with vitality, receiving a boost from rising consumer wealth and a burning-hot property market.

But their growth in China will not be easy. Chinese retailers like Gome and Suning have quickened network expansion in big cities, leaving few premium locations for foreign rivals. Besides this, foreign companies' relatively higher prices make their products less appealing to Chinese customers, said analysts. Best Buy, for example, has struggled with tight profits and scale limitations of its seven stores in Shanghai due to its less competitive prices.

Chen Xiao, President of Gome, said local retailers would continue to dominate the Chinese retail market thanks to close ties with suppliers and a well-established sales network.

It will also take the foreign chains years to learn how to fare well in China and effectively play catch up to local retailers, said Han Jianhua, Secretary General of Shanghai Commercial Trade Association of Electronic Appliances.