Historically, large Western companies looking to expand their franchises internationally had very good reasons to be wary of entering the Chinese market. Lack of local management skills, fear of franchisees not adhering to franchisors’ standards – thereby jeopardising the brand image – lack of control over recruitment, and intellectual property disputes were just a few of the countless obstacles that made franchising in China an extremely risky gamble.
In recent years, however, the franchising landscape in China has drastically improved. Today, the China Chain Store and Franchise Association – a quasi-government non-profit membership association for Chinese and foreign retailers – has 900 members with 180,000 outlets across China. In total, annual sales of CCFA members reached nearly USD 300 billion (RMB 1 = approx. USD 0.156) in 2010, or about 13 per cent of the total retail sales in China that year. Read more.
More On Franchising In China
December 8, 2011 by Mark | 0 Comments