Management Models For Franchise Bookstores

During the last 30 years of China's reform and opening-up, private bookstores have appeared and experienced rapid growth. Rising sales and expanding market shares have generated great economic and social impacts. However, increased rent and labor cost as well as pressure from the state owned XinHua Bookshop and competition from various online bookstores have caused sharp decline of profit for private bookstores, resulting in many bankruptcies. Today private bookstores are facing unprecedented crisis, the whole business is sliding down a dangerous path.Starting from business environment, this paper analyzes the current state of China's private bookstores, and then points out two main difficulties in the management of private bookstores, namely market dilemma and internal problems. Finally it reaches the conclusion that franchise management is the inevitable solution for China's private bookstores. Focusing on helping private bookstores to overcome market crisis, this paper suggests important strategies for franchise bookstores:correct market positioning, optimal location selection, creation of suitable products for consumers, and mature management.