REGIONAL> Highlights
A franchise exhibition to open
By Chen Qide (chinadaily.com.cn)
Updated: 2008-09-22 10:35
The city will host the Shanghai International Franchise Exhibition on September 28 to push forward the country's franchise industry.

The two-day event at the Shanghai International Exhibition Center will be "a stimulus to the development of China's chain store and franchise business,"said Pei Liang, secretary general of China Chain Store and Franchise Association (CCFA), today.

"It will become a platform for overseas franchise businesses to enter the China market as well as a channel for Chinese investors to expand their business,"he said.

As an official representative of retail and franchise industry in China, CCFA, established in 1997, consists of domestic and overseas retailers, franchisers, suppliers and relevant organizations. It now holds more than 1,000 company members which operate 145,000 outlets to generate a combined sale of $128 billion.

According to Wang Hongtao, director of CCFA's Exhibition and Convention Department, more than 100 franchise brands from home and abroad will attend the exhibition.

The overseas brands, accounting for 30 per cent of the exhibitors, come from the United States, Italy, Singapore, the Republic of Korea, Japan and Israel.

Pei said franchise business will become the third way to being rich following the share and housing business.

"It has found favour in investors' eyes because the share and housing market is depressing due to the economic slump,"he said.

A survey made by CCFA of its members shows that more investors are showing strong interests in the franchise business.

Wang said the food franchise business is still the major force to make up 21 per cent of the exhibitors, which involves in the Chinese and Western snacks.

The franchise business features a small investment for an outlet. At the exhibition, 17 per cent of the exhibited brands call for funds of only 100,000 yuan for each.

Wang said brands that demand an investment of 200,000 yuan for an outlet account for 35 per cent, while those which need funds of 1 million yuan take up 27 per cent.