Study Of China's Chain Retail Business Expansion

At dawn of the ages consumers and marketing in the wake of high level economic development, price wars, commodity services, store image and overwhelming activities will directly tell consumers' desire to buy. The conventional isolated fighting does no longer live up to economic effectiveness.Chained franchise has become the most stylish management mode.Through packaged purchase, multiple point marketing and collective advertising and sales promotion, business operators could bring down cost, erode risks and boost competitive edge.In chained franchises, the rights and obligations of franchisees and franchisers are issues falling within Fair Trade Law.Where the full disclosure policy was not yet enforced in full, very often franchisees become the poor victims.Unscrupulous franchisers try to charge additional franchise fees.All these represent the key issues those chain franchise firms must face up.The present study, therefore, would look into definition of chain franchise, development process, experiences and trends of franchise in foreign countries for verification to attain the following objectives:１.Look into the origin and development process in managerial systems in the chained franchises in China through theories of chained franchise in foreign countries.ï¼'.Conduct in-depth interview of franchise headquarters to compare the causes leading to different franchise types and the spread among them. Probe into the similarities and differences of franchise systems of different lines.３.Reorganize literature and conduct interview to offer one set of indigenous chained franchise to choose the franchise style and profit allocation.ï¼”.Analyze the future trends of chained franchise.The study yielded the following findings including notably the following:１.Applicability of various environmental protection related laws, Labor Standards Law and Pension Law. When the organization becomes unique, they would try to maximize performance, using the method not adopted by others to launch business which proves impossible from others.The organization will attain remarkable performance because it commits itself to consumers with different values.ï¼'.High headquarters turnover:This can be solved through career projecting in line with adequate bonus sharing awarding and promotion systems. How shall stand out among competitors?This calls for efforts of the franchise headquarters. How to bring up added values by means of innovation is the very key to success. The compound management is mainly intended to seek different customers and to supply appropriate commodities and to enable the same customer levels to satisfy comprehensive demands.This is a means that chain stores must take toward higher efficiency and diversification.３.Trends of future development in chained franchises。With rapid transmission of information and consumption type, future franchises will be gradually transformed into competition among chain systems themselves. ï¼”.The huge added chances in retail which is to be liberalized in China after WTO admission has held the limelight of the world markets. It is, therefore, necessary that such law be enacted to help local franchise headquarters strengthen their constitution to go international and greater in scale.