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Franchising Operation in China By Guo Geping,  Chairperson of CCFA October 20, 2006.  Milan, Italy
  Tips for Foreign Franchise Brands into China Environment of Franchising in China   Introduction of CCFA  Status of Franc...
  Tips for Foreign Franchise Brands into China Environment of Franchising in China   Introduction of CCFA  Status of Franc...
<ul><li>Established since   1997 ; </li></ul><ul><li>The only official representative of China’s retailing industry & fran...
  Tips for Foreign Franchise Brands into China Environment of Franchising in China   Introduction of CCFA  Status of Franc...
GDP growth: by   9.5%   between 2003 to 2005; by   10.9%   for the first half of this year;  Retailing sales growth: by   ...
Laws & Regulations a. Franchisor shall have  at least two directly-run stores within China  that have been operated for  a...
Laws & Regulations <ul><ul><ul><ul><ul><li>Contract Law ; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Corporatio...
<ul><li>Aiming to: </li></ul><ul><li>Promote the Development of  </li></ul><ul><li>Retailing/Restaurant/Services Industry ...
  Tips for Foreign Franchise Brands into China Environment of Franchising in China   Introduction of CCFA  Status of Franc...
Franchise systems in China increasing  rapidly  and steadily Status of Franchising in China Source: Year Surveys By CCFA
Economic Contributions From Franchising in China, 2005 Status of Franchising in China Source: 2005 Year Survey By CCFA 52....
Franchise Sectors (suggested by EFF)   Status of Franchising in China Y 3.Hotel/Motels Y 2.Restaurants/Fast Foods/Cafes/Ba...
Status of Franchising in China N Second hand furnishings & equipment Y DIY Stores N Sanitation & Pets Control Y Maintenanc...
Status of Franchising in China Y other Y Car and Truck rentals/Driver hire Y Servicing & Sale of accessories 7.Transport &...
Status of Franchising in China N Care Services: elderly, children Y Medics & Pharmaceuticals Y Fitness Y Beauty Products &...
Status of Franchising in China Y 14.Other Y 13.Other Specialized Retail Stores Y 12.Pets/animals N Matrimonial/Dating Agen...
Status of Franchising in China Franchisors’ Top 5 Focuses 2006 Source: Blue Book of 2006 Franchising in China
Status of Franchising in China Franchisees’ Top 5 Focuses 2006 Source: Blue Book of 2006 Franchising in China
Status of Franchising in China < 100 Thousand 23.1% 100-250 Thousand 29.9% 250-500 Thousand 18.5% 500-1000 Thousand 15.6% ...
  Tips for Foreign Franchise Brands into China Environment of Franchising in China   Introduction of CCFA  Status of Franc...
Trends of Franchising in China Experts Consensus: Top 6 Potential Sectors   Source: Repot on Trends of Franchising in Chin...
Prospective Franchisees’ Hottest Choices Trends of Franchising in China Source: 2005 Prospective Franchisee’ Survey by CCF...
  Tips for Foreign Franchise Brands into China Environment of Franchising in China   Introduction of CCFA  Status of Franc...
Tips for Foreign Franchise Brands into China <ul><li>Localization due to Different Cultures </li></ul><ul><li>Difference o...
14 of Top 20 USA Franchising Brandings in China Tips for Foreign Franchise Brands into China Source: Repot on Status of Fo...
Tips for Foreign Franchise Brands into China Franchisee’ Most Valued Capabilities By Foreign Franchisers Source: Repot on ...
Tips for Foreign Franchise Brands  into China Source: Repot on Status of Foreign Franchise Brands Development in China, 20...
Tips for Foreign Franchise Brands into China <ul><li>Localization due to Difference Cultures </li></ul><ul><li>Difference ...
Tips for Foreign Franchise Brands into China <ul><li>Localization due to Difference Cultures </li></ul><ul><li>Difference ...
What can CCFA assist you? <ul><li>To provide the legal information and current states analysis on franchising;  </li></ul>...
<ul><li>Policy & Regulation recommendation,  Lobby and Coordination; </li></ul><ul><li>Series training programs, retail & ...
China Franchise Expo  2006
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Ccfa 10 20 Milano

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Fashion, apparel, textile, merchandising, garmentsFashion, apparel, textile, merchandising, garments

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Transcript of "Ccfa 10 20 Milano"

  1. 1. Franchising Operation in China By Guo Geping, Chairperson of CCFA October 20, 2006. Milan, Italy
  2. 2. Tips for Foreign Franchise Brands into China Environment of Franchising in China Introduction of CCFA Status of Franchising in China Category Trends of Franchising in China
  3. 3. Tips for Foreign Franchise Brands into China Environment of Franchising in China Introduction of CCFA Status of Franchising in China Category Trends of Franchising in China
  4. 4. <ul><li>Established since 1997 ; </li></ul><ul><li>The only official representative of China’s retailing industry & franchise field. </li></ul><ul><li>Membership of Over 1100 , including domestic & FIEs retailers, franchisors, suppliers; Franchisors cover 50% (up to now). </li></ul>Introduction of CCFA
  5. 5. Tips for Foreign Franchise Brands into China Environment of Franchising in China Introduction of CCFA Status of Franchising in China Category Trends of Franchising in China
  6. 6. GDP growth: by 9.5% between 2003 to 2005; by 10.9% for the first half of this year; Retailing sales growth: by 13.3% in 2005. Economic Figures Environment of Franchising in China
  7. 7. Laws & Regulations a. Franchisor shall have at least two directly-run stores within China that have been operated for at least one year , or directly run stores set up by its subsidiaries or companies in which it has a controlling share ; b. Foreign-invested enterprises shall not engage in the types of business prohibited under the Foreign Investment Industrial Guidance Catalogue in the form of franchising. c. Foreign-invested enterprises engaging in commercial activities in the form of franchising shall apply to the original examination and approval authority for addition of “engagement in commercial activities in the form of franchising” to the scope of business . d. Information Disclosure Measures for the Administration of Commercial Franchise Operations released by the Ministry of Commerce, China, in Dec 2004 Environment of Franchising in China
  8. 8. Laws & Regulations <ul><ul><ul><ul><ul><li>Contract Law ; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Corporation Law; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>c. Labour Law; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>d. Anti Unfair Competition Law; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>…… </li></ul></ul></ul></ul></ul><ul><li>Character: The government departments have been expedited the franchise legislation and built the harmonious and healthy market order. </li></ul>Relevant Laws: Environment of Franchising in China
  9. 9. <ul><li>Aiming to: </li></ul><ul><li>Promote the Development of </li></ul><ul><li>Retailing/Restaurant/Services Industry </li></ul><ul><li>Sales Goals (by 2010) </li></ul><ul><ul><li>a. Restaurants: USD 250 billion ; </li></ul></ul><ul><ul><li>b. Hotel & Lodging: USD 62.5 billion; </li></ul></ul><ul><ul><li>c. Beauty & Haring: USD 75 billion </li></ul></ul>Environment of Franchising in China Policy
  10. 10. Tips for Foreign Franchise Brands into China Environment of Franchising in China Introduction of CCFA Status of Franchising in China Category Trends of Franchising in China
  11. 11. Franchise systems in China increasing rapidly and steadily Status of Franchising in China Source: Year Surveys By CCFA
  12. 12. Economic Contributions From Franchising in China, 2005 Status of Franchising in China Source: 2005 Year Survey By CCFA 52.5 Sales ( Billion US$ ) 10.5 Investment ( Billion US$ ) 3,360,000 Jobs Contributions
  13. 13. Franchise Sectors (suggested by EFF) Status of Franchising in China Y 3.Hotel/Motels Y 2.Restaurants/Fast Foods/Cafes/Bars/Pubs Y Specialized Food Stores Y General: Super & Hyper markets/CVs 1.Food Retail Existence in China Sub-Sectors Sectors
  14. 14. Status of Franchising in China N Second hand furnishings & equipment Y DIY Stores N Sanitation & Pets Control Y Maintenance/Repairs/Cleaning N Fittings & Equipment Y Textiles & Furniture 5.Home/Garden Furnishings/Fittings/Maintenance Y 4.Clothings/Personal Equipment
  15. 15. Status of Franchising in China Y other Y Car and Truck rentals/Driver hire Y Servicing & Sale of accessories 7.Transport & Vehicle Products & Services Y 6.Other Property Services (Domestic & Professional)
  16. 16. Status of Franchising in China N Care Services: elderly, children Y Medics & Pharmaceuticals Y Fitness Y Beauty Products & Services 10.Personal Care/Beauty/Fitness/Medical/Pharmaceutical Y 9.Training & Education N Finance/Tax/Insurance/Audit/Accountancy/Paralegal N Human Resource Services: Employment/Executive Search/Management Y Advertising/Publicity/Graphic Design Y Computer/ITC/Phone & Mobile Sales & Services Y Offices Supplies/Printing/Copying Y Parcel/Courier Y Fittings/Equipment/Security/Maintenance/Cleaning 8.Office/Business Supplies & Services
  17. 17. Status of Franchising in China Y 14.Other Y 13.Other Specialized Retail Stores Y 12.Pets/animals N Matrimonial/Dating Agencies Y Recreation Centers & Equipment Y Sports Clubs Y Travel Agencies 11.Travel/Sports/Leisure (Not sportswear)
  18. 18. Status of Franchising in China Franchisors’ Top 5 Focuses 2006 Source: Blue Book of 2006 Franchising in China
  19. 19. Status of Franchising in China Franchisees’ Top 5 Focuses 2006 Source: Blue Book of 2006 Franchising in China
  20. 20. Status of Franchising in China < 100 Thousand 23.1% 100-250 Thousand 29.9% 250-500 Thousand 18.5% 500-1000 Thousand 15.6% 1000-2000 Thousand 8.4% > 2000 Thousand 4.5% Investment Capability of Potential Franchisees 2005 Source: Blue Book of 2005 Franchising in China
  21. 21. Tips for Foreign Franchise Brands into China Environment of Franchising in China Introduction of CCFA Status of Franchising in China Category Trends of Franchising in China
  22. 22. Trends of Franchising in China Experts Consensus: Top 6 Potential Sectors Source: Repot on Trends of Franchising in China, 2005 by CCFA
  23. 23. Prospective Franchisees’ Hottest Choices Trends of Franchising in China Source: 2005 Prospective Franchisee’ Survey by CCFA 3.00% Others 9.00% Training & Education 9.00% After Auto Market Service 10.00% Leisure Beverage 10.00% Home Appliances 11.00% Physical Training Gym 12.00% Gift Specialty 13.00% Western Fast Food 23.00% Chinese Fast Food Ratio Industry/Sector
  24. 24. Tips for Foreign Franchise Brands into China Environment of Franchising in China Introduction of CCFA Status of Franchising in China Category Trends of Franchising in China
  25. 25. Tips for Foreign Franchise Brands into China <ul><li>Localization due to Different Cultures </li></ul><ul><li>Difference of Franchising Operation in Different Countries </li></ul><ul><li>Design of Business Model </li></ul><ul><li>Focus on Products & Services Safety </li></ul>
  26. 26. 14 of Top 20 USA Franchising Brandings in China Tips for Foreign Franchise Brands into China Source: Repot on Status of Foreign Franchise Brands Development in China, 2005 by CCFA
  27. 27. Tips for Foreign Franchise Brands into China Franchisee’ Most Valued Capabilities By Foreign Franchisers Source: Repot on Status of Foreign Franchise Brands Development in China, 2005 by CCFA
  28. 28. Tips for Foreign Franchise Brands into China Source: Repot on Status of Foreign Franchise Brands Development in China, 2005 by CCFA
  29. 29. Tips for Foreign Franchise Brands into China <ul><li>Localization due to Difference Cultures </li></ul><ul><li>Difference of Franchising Operation in Different Countries </li></ul><ul><li>Design of Business Model </li></ul><ul><li>Focus on Consumable Safety and Health </li></ul>
  30. 30. Tips for Foreign Franchise Brands into China <ul><li>Localization due to Difference Cultures </li></ul><ul><li>Difference of Franchising Operation in Different Countries </li></ul><ul><li>Design of Business Model </li></ul><ul><li>Focus on Consumable Safety and Health </li></ul>
  31. 31. What can CCFA assist you? <ul><li>To provide the legal information and current states analysis on franchising; </li></ul><ul><li>To organize twice franchise exhibitions in each year ; </li></ul><ul><li>To organize the training course for the potential master franchisees; </li></ul><ul><li>To make the matchmaking between the foreign franchisors who are eager to access China market and the potential investors who are interested in purchase the franchising right for region or nation in China mainland. </li></ul>
  32. 32. <ul><li>Policy & Regulation recommendation, Lobby and Coordination; </li></ul><ul><li>Series training programs, retail & franchise; </li></ul><ul><li>Survey & Data services; </li></ul><ul><li>Seminars, Conventions & Exhibitions etc. </li></ul>Main Activities : What can CCFA assist you?
  33. 33. China Franchise Expo 2006
  34. 34. Thanks
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