The Chinese franchising market has been developing rapidly in the past few years, and the sector was helped by the launch of the Commercial Franchise Operation Administration Regulation last February.
The People’s Daily reports:
- “The entry of mature foreign franchising enterprises and tightening market competition has prompted domestic players to operate in line with ‘fair play’ principles, hence facilitating a general upgrade of China’s franchise industry,” said Pei Liang, secretary-general of China Chain & Franchise Association (CCFA) yesterday at the opening ceremony of the Eighth China Franchise Convention.”
New entrants to the market in 2005 included Burger King (fast food), Super 8 (hotels), Bojangles (restaurant) and Uniglobal Travel. Meanwhile, established players such as McDonalds and KFC are increasingly looking to second and third-tier cities to expand their markets.
Hot sectors are reported to include “catering and hospitality…auto after-sale service, body fitness, beauty and hair-dressing, express, communications and housing maintenance”. However foreign franchisers are recommended to adapt their offerings to then local market to maximize the chances of success.
It is further noted that
- “A survey conducted by CCFA, covering 78 overseas franchise enterprises revealed that nearly half of the overseas franchisers in China are from the United States, while others are from Singapore, Japan, South Korea, Hong Kong special region, and European nations, such as Germany, France and Italy.
Some 13 of the 2004 World Top 20 Franchise Brands own businesses in China, while 60 in the top 200 have outlets.”
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See news source:
- More overseas franchisers to access China
People’s Daily Online – Beijing,China
As the market environment improves, more overseas franchisers are expected to access China, tapping into fresh sectors and carrying out mergers and …