Cloning famous brands, investment and management of franchising

Author: He Kun
Publisher:
Publish Date: 2003-04-01
Features: China is one of the largest franchising markets in the world. In terms of market size, China has a population of 1.3 billion, and the total retail sales of consumer goods are approaching 3 trillion yuan. In terms of market opportunities, the lives of Chinese residents are transitioning from subsistence to a well-off standard, and a consumption revolution has begun, marked by an increase in quantity followed by a qualitative improvement. The third industry will develop at an astonishing speed, providing vast space for the growth of franchising. For franchisees, China has already seen an emerging class of entrepreneurs, including laid-off workers nationwide, numbering 10 million, among whom there are many small and medium-sized entrepreneurs with 100,000 to 200,000 yuan. In 1996, 7.15% of urban households had an annual income of 30,000 to 100,000 yuan, with Guangdong, Shanghai, Beijing, and Tianjin accounting for 39%, 29.2%, 20.8%, and 9.6%, respectively. Households with an income above 100,000 yuan accounted for 2.2%. In 1997, the savings deposits of urban and rural residents reached 4.6 trillion yuan, providing a substantial foundation for entrepreneurial capital. These figures remain on the rise even today.