The development prospect of franchising in China:

China's huge consumer market provides huge development space for the development of franchising

The proportion of franchising in the total social consumption will continue to increase

China's policy environment will provide development opportunities for franchising

More chain enterprises will adopt franchising for development

Science and technology will promote the development of franchising

Problems and challenges faced by franchising in China:

1. ?

The vitality of chain operation lies in reducing costs and expanding market share by improving the organization and scale of enterprises. In recent years, the number of chain enterprises in China has not expanded slowly, but the development of shops in various chain enterprises is very uneven, and the scale of shops in many chain enterprises can not reach the internationally recognized profit and loss point of chain enterprises (more than 14).

2. Standardization of franchise chain operation. ?

At present, the phenomenon of nonstandard chain operation is widespread in China, which is mainly manifested in three aspects:

First, the development is nonstandard. In recent years, under the inducement of preferential policies and media hype, there has been a rush. It is necessary to have certain objective conditions to develop chain operation.

second, the operation is not standardized. The development, market positioning and business scope of chain enterprises' outlets must be determined according to the principles of minimizing risks and maximizing benefits. At present, the distribution of outlets is unreasonable and the market positioning is super-equivalent.

thirdly, the management is not standardized. According to international practice, the unified distribution rate of chain operation should reach more than 81%, while the proportion of unified procurement and unified distribution of most chain enterprises in China is only 31%-61%. In many chain stores, the surface chain is still single-store operation and fragmented. Some stores just unified the store name, clothing and logo, but the core of the chain: unified procurement and distribution has not been completed so far, and unified accounting and management are out of the question. ?

3. The development speed and benefit of franchise chain operation. ?

With the development of chain operation, some mature chain enterprises, especially catering and fashion specialty stores, have accelerated their development. Beijing Quanjude Roast Duck Restaurant, Tianjin Goubuli Steamed Bun Shop and Beijing Pierre Cardin Fashion Company have all adopted franchise mode, and some large retail enterprises have also adopted franchise mode to develop branches during their development to expand their scale. However, the expansion of the scale of chain enterprises should be based on the expansion of benefits, and it is an economic model that reduces the unit cost and increases the income through large scale. Therefore, the large number of stores sold by an enterprise is not completely equal to the benefits. If the benefits decrease with the expansion of the scale, the scale will be uneconomical, and even losses and closures will occur. For example, the closure of Red Apple in Beijing, except for management reasons, is mainly due to the blind proposal to develop 111 chain stores in a short period of time without considering its own economic strength, which will eventually lead to insufficient funds and failure to pay the supplier's payment. On the development prospect and challenges of franchising in China?

4. There is a serious shortage of franchise talents. ?

Talents are the soul of franchising. Without some talents and a strong management system and management technology, a successful enterprise can't run franchising well. Talents engaged in franchising should be professionals who know intellectual property, business management and legal knowledge. Enterprises can cultivate their own talents internally, or cooperate with universities to establish a talent reserve base and establish an "intellectual resource pool" for the sustainable development of enterprises. ?

5. The impact of internationalization of franchising on China. ?

when China's chain operation was just growing, some international super chain enterprises entered China one after another and used joint ventures and cooperation. Export management and other forms occupy the Chinese market, which constitutes the competitive pressure of chain operation in China.