Overview of the Market.
China Market
At a Glance
Growth is expected to be 7.5% in 2014 and 7.3% in 2015, yet as
China ranks 93rd in the world on GDP per capita, there is
significant room for consumption growth. The long-term
outlook is positive.
During the past 30 years, there
has been dramatic economic
growth in China and while
franchising only started in the
1980’s it has also displayed rapid
development. By 2012 the
number of franchised stores
exceeded 400,000 with 5,000
systems averaging 83 stores. The
total annual sales of CCFA (China
chain store & franchise
association) members reached
nearly US$300 billion in 2010 and
represented about 13% of total
retail sales in China.
The growing wealth,
consumption, density of
population and rising 2nd/3rd tier
cities makes China a lucrative and,
for the foreseeable future,
growing market.
It is odd when we talk about a
slowdown in China yet GDP
growth is still above 6.5%-not to
be sniffed at.
As China becomes more open,
their desire for foreign brands and
new experiences grows in parallel.
There are a range of hot sectors a
franchise should be aware of. They
value foreign brands higher than
domestic brands as they are very
much seen to be a status symbol.
The resulting demand from these
factors should be filled by savvy
franchisors looking to expand out
of their domestic market.growth
(14% increase) 2011-2012, was
seen in the internet and TV
shopping sectors.
Key Franchise Points
* Although growth has slowed, total retail sales in 2015 showed
a real growth of 10.6 percent after deducting price factors