Magazines Archives - 2009 October

Chain store and franchise enterprises command leadership position in China
Story 9 - News

China’s chain store and franchise industry is using good commercial areas, giant chain networks and rapid promotion to take the leadership in the industry chain irreversibly, says Research and Markets.

According to the recently released research report, China Chain Store & Franchise Industry in 2009, released by the Dublin-based research group, China’s top 100 retail chain enterprises hit a sales value of RMB1.199 trillion (US$171.4 billion) in 2008.

The chain store and franchise industry is described as “the final link of the whole market system”. Research and Markets observes that “the oversupply market structure improves the status
of China’s chain store and franchise industry unprecedentedly”.

“The chain industry will spur the development of upstream industries,” the report noted.

China’s total volume of retail sales of consumer goods increased from RMB5.95 trillion in 2004 to RMB10.84 trillion in 2008, up by 15% and higher than the GDP growth year-on-year by 5%.

Said the report: “Since the beginning of 2004, the total volume of retail sales of consumer goods in China have increased stably. In the long run, the total volume of retail sales of consumer goods
are always keeping a good increase, which means the retail market is playing a more important role in promoting domestic demand, expanding consumption, promoting economic growth, and
realising the scale and industrialisation of industry enterprises.”

In 2008, the sales volume of China’s top 100 chain enterprises reached RMB1.19 trillion, up by 18.4% and accounting for 11% of the total volume of retail sales of consumer goods, remaining the same as that in the previous year. The aggregate number of shops of the top 100 enterprises reached 120,775,
rising by 10.6%.

Staying in the top position for the third consecutive year, Gome Home Appliances Group registered a sales volume of RMB104.59 billion, followed by Suning Appliance Group with RMB102.34 billion, Shanghai Bailian Group (RMB94.33 billion), China Resources Vanguard Co Ltd (RMB63.8 billion) and Dalian Dashang Group Co Ltd (RMB62.55 billion.)

In 2008, the number of direct employees of China’s top 100 chain enterprises was over two million and the number of newly opened stores reached 23,844, of which 20,000 were in rural areas. The average investment in over 3,000 stores in cities surpassed RMB5 million, which completed the direct
investment to nearly RMB20 billion.

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