| Foreign experts optimistic about franchised operation in China |
| Last Updated(Beijing Time):2006-10-20 15:43 |
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While attending an international seminar in Hohhot, Professor Al Terry, Chairman of the International Franchise Federation, and other foreign experts at the meeting said that franchise business operation had made rapid development in China over the past few years to become an ideal global market for franchise industry.
In 1987, KFC opened its first outlet in China, signifying that franchise industry was beginning to take root in the country.
Information from the China Chain Store and Franchise Association shows that in 2000, China had only 500 types of franchised stores. By the end of 2005, however, the figure quickly rose to 2,320, which included a total of 168,000 outlets.
Nowadays, franchise operation has been widely adopted in running supermarkets, household appliances stores, clothes stores, pharmaceutical shops, book stores, laundry shops, and photo studios in China. Among the world's top 20 franchised enterprises, 15 have opened their outlets in China. Meanwhile, local franchised stores have also made big ways. Take the Lining Sportswear Company for example. Founded in 1990 the company now has 2,500 outlets across China and developed into the largest domestic sportswear franchised company in China.
Experts say that at present, the sales volume of the franchised companies has accounted for 3% of the total retail sales in China, far below the United States, where franchised selling accounts for nearly 40% of the total retail sales volume. In spite of this, the operational volume for Chinese franchised companies is growing at an annual rate of 40%, far exceeding the 10% sales growth rate in domestic retail market. |
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