China to Host International Franchise Exhibition, Conference

BEIJING, August 10 (Xinhua) -- The '99 International Franchise Exhibition & Conference, hosted by the China Chainstore & Franchise Association (CC&FA), will be held at the International Convention Center here November 1-3.

Representatives from domestic and overseas franchised enterprises will gather here to exchange views and experiences on the development of the franchise business in China and its prospects.

Guo Geping, chairwoman of the CC&FA, said at a news conference today that franchising, with lower cost, less risk and higher profit than traditional marketing patterns, will be favored by more Chinese commercial enterprises in the future.

Running franchises can not only resolve the financing problems facing most small and medium-sized companies, and enhance their competitiveness, but also create more jobs for the unemployed and stimulate domestic consumption in the long run, she added.

Guo said that franchising was born out of the chain store business, and emerged in China several years ago. It has shown conspicuous growth in this country, she said.

She pointed out that the total sales of the chain store sector exceeded 100 billion yuan last year, with franchise business sales hitting nearly 30 billion yuan. In the first half of this year, the chain store sector registered a growth rate of 31.7 percent compared with the same period of last year, she added.

Nevertheless, she said, the sales of franchise businesses in China only account for some one percent of the country's total retail sales, indicating a huge market potential.

Experts predict that in some ten years' time the sales of franchise businesses will account for more than 10 percent of the total retail sales in China.