CHINA FRANCHISE NEWS
Vol. 3 , No. 4 - March 12, 2002
TOPICS THIS ISSUE:
- Chain Stores Play a Leading Role in China's Retail Industry
- 7-11 to Enter Mainland China
- Convenience Retail Asia to Open 64 stores in China
- Shanghai to Revamp Retail Trade to Compete with Foreign Firms
- EUPA International Plans to Open 3C Retail Stores In Mainland China
Chain Stores Play a Leading Role in China's Retail Industry
The year 2001 witnessed vigorous growth of earnings and numbers of outlets for China's chain stores. According to Business Weekly, by last June, 1,138 chainstores, with 25,119 outlets, were operating in China. Their first-half turnover in 2001 exceeded 102.41 billion yuan (US $ 12.38 billion).
The State Economic and Trade Commission (SETC) has set a goal that by 2005, the number of chain stores nationwide will exceed 100,000, with turnover of 700 billion yuan (US $ 84.6 billion). Moreover, SETC hopes that at least twenty chain stores will have annual turnover exceeding 5 billion yuan (US $ 605 million), and five to ten chain stores will be capable of competing on an international level.
(Source: Asiainfo Daily)
7-11 to Enter Mainland China
Taiwan's Uni-President group will cooperate with Japan-based Ito-Yokado and Chinese investors to set up a joint venture for operating 7-11 stores in the mainland. The JV is expected to begin operations in the first half of this year, and start to open the convenience stores in Beijing and Shanghai in the second half of this year.
The group's unit President Chain now operates 2,938 7-11 stores in Taiwan with a franchise license from the US-based 7-11 Inc., which is controlled by Ito-Yokado.
(Source: Agency France Presse)
Convenience Retail Asia to Open 64 stores in China
Convenience Retail Asia (CRA) plans to open 40 convenience stores in Mainland China and 24 in Hong Kong this year in an effort to boost the company's turnover, according to CRA's chief executive officer Richard Yeung.
CRA, which manages a convenience store chain under the trade name Circle K, recorded a net profit of HK$ 65.547 million (US $ 8.4 million) in 2001 against HK$ 48.119 million a year earlier. Despite the positive financial results, CRA is expected to face a hard time in the first half of 2002, partly due to the weakness in the retail sector since September 11, Yeung said.
The company's existing convenience stores recorded a 2.0 per cent year-on-year contraction in sales in the fourth quarter last year and in the first 2 months of 2002. However, the new stores in Hong Kong and the Mainland may help offset some negative impact from the weak retail sector, he said, adding that the company is maintaining its target of doubling its net profit between 2001 and 2003.
(Source: Financial Times Information)
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Shanghai to Revamp Retail Trade to Compete with Foreign Firms
Shanghai is looking for ways to help local retailers to meet growing competition from overseas rivals. Foreign retailers are entering the Shanghai market in increasing numbers following China's entry into the World Trade Organization in December. U.S. retailers Saks Inc. and Sears Roebuck & Co. are among companies that have expressed interest in setting up shop in the city.
The challenge from foreign retailers is highlighted by the expected opening of the Super Brand Mall. Owned by Thailand's Charoen Pokphand Group and with an investment of US$ 355 million, this 13-story mall is ready to welcome Shanghai consumers in April.
Measures taken by local government to bolster local storekeepers include revamping Nanjing Road, Shanghai's 150-year-old main shopping street, cracking down on piracy, improving the quality and safety of goods, developing tourism and services and modernizing the city's 1,500 mom-and-pop stores.
(Source: Bloomberg News)
EUPA International Plans to Open 3C Retail Stores In Mainland China
EUPA International Corporation announced today its plan to open 3C retail stores in China to build on its parent company's achievements in Taiwan.
EUPA's parent company, the Tsann Kuen Group, is one of the largest appliance manufacturers in the world. Currently operating 79 3C stores in Taiwan, Tsann Kuen announced sales of $25.58 million USD for the month of February. Its 3C stores focus on three product areas: communications, computers, and consumer electronics.
EUPA is now conducting marketing tests and site evaluation and expects to open its first store in 2002. According to its business plan, EUPA's 3C stores in mainland China will carry a variety of home appliances and consumer electronics products that will be organized in a customer friendly fashion with knowledgeable staff to answer client queries.
(Source: PR Newswire)
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