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Franchised chain enterprises expanded faster and sales slowed down last year

Source: Information Times Release date: 2011-05-19 17:40:00 Reading volume:

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Influenced by factors such as rising operating costs and difficulty in collecting franchise fees, the China Chain Store Association recently released a list of the top 100 franchised chains in China in 2010, which ranked 120 in 21 different industries, including supermarkets, convenience stores, comprehensive retail, clothing, pharmacies, and domestic service

    【 Building materials network 】Affected by factors such as rising operating costs and difficulty in collecting franchise fees——
  
A few days ago, the China Chain Store Association released the list of the top 100 franchised chains in China in 2010. In this list, 120 franchised enterprises were included in 21 different industries, including supermarkets, convenience stores, comprehensive retail, clothing, pharmacies, and domestic service. According to the survey, the franchise business opened faster in 2010 than in previous years, but was affected by factors such as labor and rent increase, pin Sales growth was generally lower than that of stores, significantly lower than that of 2009.
  
Current situation: sales growth rate is lower than that of stores
  
The survey report shows that the sales of the top 120 franchised chains reached 338.7 billion yuan last year, up 8.9% over 2009. Totally owned by the top 120 door There were 131400 stores, an increase of 12.5% over 2009; Among them, there were 111500 franchise stores, an increase of 17.6% over 2009. The top 120 companies have 1095 stores on average, and the growth rate of the total number of stores in each business type has basically remained above 10%.
  
However, compared with the speed of opening stores, the sales growth of the top 120 enterprises is generally lower than that of stores, and the sales growth of many businesses has declined significantly, especially the sales growth of comprehensive retail, catering, laundry, education and training. The reporter found that there were 10 Guangdong enterprises on the list this time, two more than the previous year. Among them, Guangzhou Popular Beauty and Guangzhou Fulong Cellar Wine Industry were the new top 100 franchised chains. Last year, the sales scale was 959 million and 470 million respectively, and the number of franchise stores was 1998 and 185 respectively.
  
Market: difficult to collect franchise fees, weak willingness to invest
  
The main problems faced by franchising enterprises last year have changed significantly from those in 2009. The top three prominent problems faced by franchise enterprises last year were difficulty in collecting franchise fees, weak willingness of investors to join, and increased difficulty in maintaining relationships with franchisees. In 2009, the top three were standardization and standardized management that needed to be improved, the decline of the consumer market led to a decline in profitability, difficult location, and high rents.
  
Guo Geping, president of China Chain Store Association, analyzed that the operating costs of franchising enterprises increased significantly compared with 2009 due to factors such as rising labor and rent, and the pressure on profits increased. Among them, the industry and business type with high growth rate is professional retail, which rose from 6.0% in 2009 to 30.6% in 2010. Therefore, it is difficult to collect the franchise fees, reduce the willingness to invest, and increase the difficulty of maintenance of franchisees.
  
Solution: enterprises need to be listed for financing to quench their thirst
  
Guo Geping believes that this change will continue or even intensify in the future, and listed financing is a way for enterprises to solve the dilemma of capital shortage.
  
According to the report, listed enterprises account for 15% of the current top 120 licensed enterprises. "The impact of the capital market on franchising is mainly manifested in the increase of the strength of direct stores and the acceleration of their expansion speed. After the entry of funds, the optimization of enterprise teams will be strengthened, which will lead to mergers and acquisitions between brands." Guo Geping said that with the expansion of the scale of franchising enterprises, more investment institutions will enter this field.
  
At present, there are less than 20 licensed enterprises for IPO in China, and there is still great space and potential for cooperation between capital and licensing.
  
  

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