With more than 2,000 franchise stores and over 120,000 outlets, China has seen its franchises growing into the world's largest within the past decade.
Statistics from the China Chain Stores and Franchise Association (CCSFA) show the franchise business model is prospering in nearly 50 sectors including convenience stores, automobile maintenance, home decoration, education and training, laundry, attire, books and audio-visual products and the catering business.
Approximately 1.8 million people are working in franchises now.Last year alone, more than 600,000 job opportunities were created.
Guo Geping, chairman of CCSFA, told the Economic Daily Tuesday that the aggregate turnover of China's franchises grew by 41.5 percent last year while the growth rate of outlets slowed down by 38 percent.
"This means having as many outlets as possible is not as paramount as it used to be. Most Chinese franchise store owners have turned to seek a more solid and sustained development, such as defending the value of their brand names, optimizing internal management and improving the efficiency of distribution," Guo said.
"Although China has made phenomenal achievements in developing franchise businesses since the late 1990s, there are still some problems waiting to be tackled, especially in the rectification of market order."
Since all previous restrictions on franchise businesses in China were eliminated in 2004 as required by the World Trade Organization, industrial analysts held that China's franchise industry has entered its best ever period in history.
In Mid-May, the Seventh China Franchise Expo, sponsored by theCCSFA, will be held in Beijing. Over 30 well-known franchise brands such as Kentucky Fried Chicken and Mcdonalds'will come to China to seek new opportunities. There will also be delegations from Germany, Italy, France and the Republic of Korea.Asia Pulse
