China’s rapid economic growth corresponds proactively with franchising, as many cultures of the world collide in this immense melting pot of consumerism. It is said that one could be blind and still hit a buyer’s market in China today. Standardised management and efficient inter-cultural understanding through franchising will help guide the way.Economists and business analysts predict that we will soon see franchise growth and development flourish in China. Although today the line to enter the country is comparatively short, I forecast that that will change rapidly when the draft regulation on commercial franchising is promulgated in China.
Couple that action with the 2008 Olympics in China, and you have a definite need for infrastructure to be set in place. The Chinese government, hearing clock ticking, will surely act upon its awareness of the perfected ability of franchising to help assemble the mammoth partnerships on which this worldwide pinnacle of showcases will take place.
While our franchising initiatives meetings were taking place in Beijing, Donald Evans, the US Secretary of Commerce, and Elaine Chao, the Secretary of Labor, were also on a week long visit to China. Emphasising the importance of moving toward market-based reforms and a free flow of capital and currency, Evans urged the Chinese government to break down trade barriers. Evans, moreover, cited the obvious quandary China has with defending intellectual property theft in the PRC.
Franchisors have always been pioneers moving into new untamed markets with products and services. Many will see the possibilities in China and accept the challenge. After all, it will be tough to pass up the largest marketplace the world has ever known.
Dhawal Shah on January 17th, 2005 at 7:06 am
Franchising is booming in the developing markets. China, India and several nations in the South East are experiencing exponential growth in terms of sales through franchise outlets.
8% of the total outlets are franchised and in terms of sales volume they contribute a mammoth 40%. Franchising is a proven concept and has been around for decades. Developing markets consume Western Brands as they aspire for a better standard of living.
The opportunity for International Franchise Cos. lies in successfully localising their product without losing its uniqueness.
Happy Franchising Endevours!