|
(Last updated: 21 Dec 2011)
|
Franchising Opportunities in China webinars
|
|
Donut King in China (PDF, 15MB)
Paul Mak, Mak Brands discusses the opportunities and challenges of operating an Australian franchise in China.
|
|
Franchising Opportunities in China Overview (PDF, 6MB)
Brent Stewart, China Services Team Leader provides an overview of franchising opportunities in China.
|
Overview
Currently there are around 1,025 business format franchises in Australia, compared with 1,100 in 2008. The majority of franchise system closures were small retailers. Ninety-one per cent of franchise systems are of Australian origin.
There are an estimated 69,900 units operating in business format franchises, reflecting a decline of two per cent during the economic downturn.
The majority of franchising continues to take place in retail trade, which accounts for 26 per cent of franchisors. Accommodation and food service (including ‘fast food’) franchises represent 17 per cent of franchisors. Administration and support services (including travel agencies, office services, domestic and industrial cleaning, gardening services and lawn mowing) account for 15 per cent of franchisors.
International franchising opportunities also exist with an increasing number of markets opening up and franchising almost universally accepted as a way of doing business. More than one-quarter of Australian franchise systems have international operations, contributing millions of dollars in export income from royalties and franchise fees.
Two-thirds (68 per cent) of the international franchised and company-owned units were located within the English-speaking nations of New Zealand, UK, Canada and USA. Some 12 per cent of units were held in Europe and the remainder were mostly in South-East Asia.
The opportunities, however, do not apply in equal measure across all Australian systems or markets. Individual franchisors need to assess their own readiness and capability to export, as well as undertaking comprehensive market research, before going anywhere. Most franchisors entered international markets within the last eight years and held a median of 20 units in the domestic market prior to venturing overseas.
(Source: Franchising Australia Survey 2010)
Key opportunities
Social and economic trends such as an ageing population, increasing disposable incomes, single parent families, health and fitness and Internet usage are a good indicator of opportunity areas in franchising. These trends can translate into demand for products and services such as aged care and child care, retirement planning services, recreation services for the over-55s, security services, healthy takeaway food, domestic and personal services, home improvement services, specialised fitness gyms (such as women-only gyms), and technical services such as telecommunications and IT services.
Products/services that are currently selling well internationally are:
- Retail food such as coffee shops, cafes, juice/salad/noodle bars
- Retail non-food such as homewares/home storage
- Business services, such as financial planning, tax agents
- Personal services, such as fitness training, beauty treatments
- Home services, such as home maintenance/renovation
As franchising is a business model covering many different industry sectors, market opportunities depend on the products and services being offered.
New Zealand is always popular, especially as a first market, although its small market size can be a drawback. Other English-speaking markets, such as the UK, US and Canada have well developed franchise sectors and offer a level of familiarity that tends to outweigh their distance.
Closer to home, South-East Asian markets such as Singapore, Malaysia and Indonesia also offer opportunities however, the considerable cultural diversity must be understood and factored into business plans.
High-growth emerging economies such as India and China are generating strong interest, as well as Central Europe, the Middle East, and Latin America.
How can we help you?
With a worldwide network of highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.
Services include:
- Coordinating trade missions around international events such as Franchising and Licensing Asia in Singapore, SIF in Spain and IFE in Washington DC
- Conducting seminars in Australia, often with Austrade staff from overseas offices
- Undertaking market research and business partner searches
- Individualised market visit programs
- Buyer visits
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au.
Useful links and contacts
Industry
Government
|