Franchise Business Costs Increased By &Nbsp; Clothing Franchises And Other Industries Increased.

2010 China

The growth rate of joining in Econo Hotel, education and training and professional retailing decreased significantly. Clothing franchising, agricultural chain linkage and health leisure were greatly improved.

Last year, chartered Enterprises

In 2010, the list of China's franchise chain top 120 came out.

This is according to the supermarket convenience store.

phenomenon

Increasing number of franchised stores such as clothing monopoly

According to the latest survey by China Chain Store Association, there were more than 4500 franchising companies in China last year, with more than 400 thousand franchises and over 70 industries.

Judging from the number of stores, the number of franchise stores last year was generally higher than that of 2009.

Among them, the fast growing industries include Econo Hotel, business services, agricultural chain and healthy leisure.

The growth rate of retail enterprises is generally low, of which clothing is 16.7%, professional retail is 10.3%, and comprehensive retail sales are 4.5%.

However, the growth rate of franchised stores is the opposite. Last year, the opening rate of the top 120 franchised stores was basically flat compared with that of 2009. Some of the stores were slightly down. The growth rate of Econo Hotel, educational training and professional retail stores decreased significantly compared with that of 2009. However, clothing franchises, agricultural chain stores and health and leisure stores increased considerably.

According to the analysis of the industry, with the expansion of the franchise scale and the strength of the franchise, and the requirement of the capital market for the assets and profits of the enterprises, the franchised enterprises have intensified the development of Direct stores, and some enterprises have shifted the focus of development to the direct outlets.

In order to quickly deploy and reduce investment risks, the enterprises that were directly operated by the main camp gradually introduced into the development of franchised stores.

Problem sales growth is generally lower than the problem of shop growth.

Last year, the franchise business still faced a series of problems. In addition to the sales growth of auto supporting market, business service and home decoration industry, the sales growth of other industries and formats was lower than that of shops.

Compared with 2009, sales growth of many formats declined significantly. Among them, sales growth of comprehensive retail, catering, Econo Hotel, laundry, education and training decreased significantly, while there were obvious changes in home decoration, agricultural materials and professional retail sales than in 2009.

Guo Geping, President of the China Chain Store Association, said that the operating costs of the concessionary enterprises increased significantly from 2009 to 16.6% in 2010, up from 21.4% in 2009.

The highest cost increases are automobile matching market, professional retail and Econo Hotel.

However, in the face of rising cost pressures, franchising increased to 14.2% through innovation management and average net profit margin from 14.2% in 2009.

Among them, the growth of net profit rate of catering, Econo Hotel, education and training, home decoration and clothing is higher than the average growth rate.

Join in difficulties and reduce willingness to invest

Last year, the major problems faced by chartered businesses were significantly different from those in 2009.

Last year, the most prominent problems faced by the franchising companies were the difficulty in collecting the first 3 fees, the weakened willingness of investors to join, and the difficulty in maintaining the relationship with franchisees.

The top 3 in 2009 were the urgent need to standardize and standardize management, and the decline of the consumer market led to a decline in profitability, location difficulty and high rent.

"From the change of sorting, we can see that since 2009, great changes have taken place in the market environment, especially the continuous rise in operating costs, which has caused tremendous pressure on franchising businesses. At the same time, the strengthening of management and development of franchising headquarters has been significantly intensified, and the relationship between headquarters and franchisees has changed with the pressure of regulation and profitability."

Guo Geping believes that this change will continue and even intensify in the future.

Guo Geping suggested that in the future, we should consider the simple mode of joining and direct expansion, and gradually give way to the mixed mode of direct and franchising, so as to maintain a reasonable proportion of direct operation and franchise.

At the same time, in order to alleviate the pressure of rent rising, we can enhance passenger flow and share costs through brand cooperation.