Will you begin to carve out this year? Does your enterprise have its expansion plan? Franchising is becoming an important approach for individuals to carve out and for enterprises to expand due to its characteristic of “cloning successes and copying fortunes”.
What kind of new changes appeared in franchising industries in 2005? And in what kind of fields business opportunities will converge in 2006? The reporter interviewed Ms. Guo Gepoing, Chairwoman of the China Chain Store & Franchise Association (CCFA) exclusively.
Guo’s first impression is that “standardization and development” is the primary key in the domestic franchising market. She said that on December 30, 2004, the Ministry of Commerce promulgated the new Administrative Measures on Commercial Franchising Operations. In the Administrative Measures that was formally put into effect on February 1, 2005, specific prescriptions had been made on the qualification of the franchisors, the disclosure system of franchising information, and also the protection of investors, which is very important for the consummation of the regulation and administration over franchising industries. In the meantime, China’s retailing market formally opened up to foreign funds on December 11, 2004; thus, franchising brands at home and abroad began to compete directly with one another.
“Obviously, foreign franchising enterprises quickened their steps to enter into the Chinese market last year. Burger King, one of the three global magnates in western-style snacks, opened its first regular chain in Shanghai.”
“This year, they are ready to open 10 more stores. Both Super 8 Hotel, a brand of economic hotel, and Autobacs, a brand of after-market services for motor vehicles, have begun to place their chessman in the Chinese market. On last year’s China Franchise Expo, overseas enterprises were rather enthusiastic in joining the delegation. As shown by statistics, over 60 out of the world’s top 200 franchise chain brands have begun to exploit their market in China. It is forecast that international brands will further quicken their steps to enter into the Chinese market this year.”
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