Research Report on Chinese Chain Operation Industry 2011-2012
As a form of retail business, chain operation first emerged and developed in the U.S.A., and gradually spread to other countries around the world.
Pierre Cardin exclusive shop located in Beijing, China's first enterprise in the form of trademark franchise, started business in Aug. 1984, which was regarded as the beginning of Chinese chain operation industry. In 1986, Tianjin Leadar Group Co., Ltd. set up Tianjin Leadar International Market, and took the lead to establish chain stores in China, starting Chinese domestic chain operation. For over 2 decades, chain operation, as a corporate organization form particularly represented by household appliance retail, pharmaceutical retail, hospitality and catering industries, has enjoyed a boom in China.
As statistics show, in 2010, sales scale of Chinese Top 100 chain enterprises reached CNY 1.66 trillion, increasing by 21.20% YOY, and their sales revenue accounted for over 10% of total retail sales of Chinese consumer goods.
According to international experience, once GDP per capita of a country exceeds USD 3,000, consumption of the country begins to grow. Chinese GDP per capita had exceeded CNY 3,000 in 2008. Urbanization becomes the important impetus to the growth of consumer demand. Chinese urbanization rate broke through 30% in 1996, thus China entered the rapid urbanization stage. In 2010, Chinese urbanization rate was about 47%, lagging far behind that in developed countries, which also signifies the huge space for Chinese urbanization. Per 1% rise of Chinese urbanization rate will result in urban population increase of over 13 million as well as bring enormous growth of consumption demand.
According to the statistics of the National Bureau of Statistics of China, in 2010, China's GDP was up to CNY 39.80 trillion, rising by 10.30% over 2009, and total retail sales of Chinese consumer goods was CNY 15.70 trillion, ascending by 18.30% over 2009.
According to the development experience of global chain operation industry, high-income and populous regions are the hotbeds for the chain operation industry development. However, unbalanced levels of regional economic development lead to different levels of the chain operation industry development in different regions.
In 2008-2009, facing the influence of the international financial crisis, Chinese small and medium-sized retailers chose to reduce business scope, while large retailers tended to carry out expansion, i.e., supermarkets, department stores and household appliance chain enterprises implemented business expansion through establishing new shops and carrying out mergers. Therefore, it can be seen that investors are optimistic about the development prospect of Chinese retail industry. Since the costs of setting up a new shop and merging with retail enterprises with poor operation are low in the economic downturn, enterprises can realize low costs for expansion reversing the market tendency, so as to make competition preparation for a new round of industrial growth.
The Chinese government and local governments began to continually release incentive policies from the end of 2008 so as to promote the increase of domestic demand.
To regulate and promote the development of Chinese chain operation industry, the Chinese government keeps issuing various direct and indirect management policies in recent years. In the short term, some policies may bring bad effects to the industry development, but these policies will have a promoting effect on future healthy development of the industry in the long term.
With the growth of Chinese economy and increase of income per capita, Chinese chain operation industry will maintain a rapid growth in the next few years.
More following information can be acquired from this report:
Pierre Cardin exclusive shop located in Beijing, China's first enterprise in the form of trademark franchise, started business in Aug. 1984, which was regarded as the beginning of Chinese chain operation industry. In 1986, Tianjin Leadar Group Co., Ltd. set up Tianjin Leadar International Market, and took the lead to establish chain stores in China, starting Chinese domestic chain operation. For over 2 decades, chain operation, as a corporate organization form particularly represented by household appliance retail, pharmaceutical retail, hospitality and catering industries, has enjoyed a boom in China.
As statistics show, in 2010, sales scale of Chinese Top 100 chain enterprises reached CNY 1.66 trillion, increasing by 21.20% YOY, and their sales revenue accounted for over 10% of total retail sales of Chinese consumer goods.
According to international experience, once GDP per capita of a country exceeds USD 3,000, consumption of the country begins to grow. Chinese GDP per capita had exceeded CNY 3,000 in 2008. Urbanization becomes the important impetus to the growth of consumer demand. Chinese urbanization rate broke through 30% in 1996, thus China entered the rapid urbanization stage. In 2010, Chinese urbanization rate was about 47%, lagging far behind that in developed countries, which also signifies the huge space for Chinese urbanization. Per 1% rise of Chinese urbanization rate will result in urban population increase of over 13 million as well as bring enormous growth of consumption demand.
According to the statistics of the National Bureau of Statistics of China, in 2010, China's GDP was up to CNY 39.80 trillion, rising by 10.30% over 2009, and total retail sales of Chinese consumer goods was CNY 15.70 trillion, ascending by 18.30% over 2009.
According to the development experience of global chain operation industry, high-income and populous regions are the hotbeds for the chain operation industry development. However, unbalanced levels of regional economic development lead to different levels of the chain operation industry development in different regions.
In 2008-2009, facing the influence of the international financial crisis, Chinese small and medium-sized retailers chose to reduce business scope, while large retailers tended to carry out expansion, i.e., supermarkets, department stores and household appliance chain enterprises implemented business expansion through establishing new shops and carrying out mergers. Therefore, it can be seen that investors are optimistic about the development prospect of Chinese retail industry. Since the costs of setting up a new shop and merging with retail enterprises with poor operation are low in the economic downturn, enterprises can realize low costs for expansion reversing the market tendency, so as to make competition preparation for a new round of industrial growth.
The Chinese government and local governments began to continually release incentive policies from the end of 2008 so as to promote the increase of domestic demand.
To regulate and promote the development of Chinese chain operation industry, the Chinese government keeps issuing various direct and indirect management policies in recent years. In the short term, some policies may bring bad effects to the industry development, but these policies will have a promoting effect on future healthy development of the industry in the long term.
With the growth of Chinese economy and increase of income per capita, Chinese chain operation industry will maintain a rapid growth in the next few years.
More following information can be acquired from this report:
- Development of Chinese chain operation industry
- Market competition of Chinese chain operation industry
- Development of Chinese chain operation industry by region
- Key enterprises of Chinese chain operation industry
- Development trend of chain operation industry
- Retail enterprises
- Chain enterprises
- Suppliers
- Investors and research institutions concerned about chain operation industry
1 RELATED CONCEPTS OF CHAIN OPERATION INDUSTRY
1.1 Definition and Classification of Chain Operation Industry
1.1.1 Definition
1.1.2 Classification
1.2 Business Pattern of Chain Operation Industry
1.3 Status of Chain Operation Industry in Chinese National Economy, 2010-2011
2 DEVELOPMENT ENVIRONMENT OF CHINESE CHAIN OPERATION INDUSTRY, 2011-2012
2.1 Economic Environment
2.2 Policy Environment
2.2.1 Chinese Major Policies on Consumption Encouragement
2.2.2 Policy Trend
3 DEVELOPMENT OF CHINESE CHAIN OPERATION INDUSTRY, 2010-2011
3.1 Overall Industrial Development
3.1.1 Total Retail Sales of Social Consumer Goods
3.1.2 Development of Various Business Patterns
3.1.3 Consumption Price
3.2 Development Characteristics of Chinese Chain Operation Industry, 2010-2011
3.2.1 Development Speed of Department Store Faster than That of Supermarkets
3.2.2 Rapid Developing Online Retail
3.2.3 Frequent Price Wars
3.2.4 Expansion of Large Enterprises Reversing Market Tendency
4 ANALYSIS AND PREDICTION ON COMPETITION OF CHINESE CHAIN OPERATION INDUSTRY, 2010-2012
4.1 Industrial Competition
4.1.1 Ranking
4.1.2 Market Concentration
4.2 Analysis and Prediction on Competition Characteristics of Chinese Chain Operation Industry
4.2.1 Competition Situations
4.2.2 Competition Trend
5 ANALYSIS ON KEY SUB-INDUSTRIES OF CHINESE CHAIN OPERATION INDUSTRY, 2010
5.1 Development of Chinese Pharmaceutical Chain Industry
5.1.1 Status Quo
5.1.2 Competition Pattern
5.1.3 Development Trend
5.2 Chinese Chain Hotel Industry
5.2.1 Overall Situation
5.2.2 Market Demand Analysis
5.2.3 Pricing Analysis of Chinese Economy Hotels
5.2.4 Market Development Prediction
5.3 Chinese Household Appliance Chain Industry
5.3.1 Status Quo
5.3.2 Development Trend
6 ANALYSIS ON CHINESE CHAIN OPERATION INDUSTRY BY REGION, 2009-2012
6.1 General Analysis on Regional Distribution of Chinese Chain Operation Industry
6.1.1 Regional Distribution Characteristics
6.1.2 Analysis and Prediction on Regional Distribution of Scale Indicators
6.2 Analysis on Chain Operation Industry in Shanghai
6.2.1 Economic Environment Analysis
6.2.2 Operations
6.2.3 Development Trend
6.3 Analysis on Chain Operation Industry in Beijing
6.3.1 Economic Environment
6.3.2 Operation
6.3.3 Development Trend Prediction
6.4 Analysis on Chain Operation Industry in Shenzhen
6.4.1 Development Environment
6.4.2 Operations
7 ANALYSIS ON KEY ENTERPRISES OF CHINESE CHAIN OPERATION INDUSTRY, 2010-2011
7.1 Household Appliance Chain Companies
7.1.1 Suning
7.1.2 GOME
7.1.3 Jiangsu Five Star Appliance Co., Ltd.
7.2 Hotel Chain Companies
7.2.1 Jinjiang Inn
7.2.2 Home Inns
7.2.3 Motel 168
7.3 Pharmaceutical Chain Companies
7.3.1 Shenzhen Nepstar Chain Drugstore Ltd.
7.3.2 LBX Pharmacy Chain Co., Ltd.
7.3.3 Guangdong Da Shen Lin Chain Drugstore Co., Ltd.
7.4 Catering Chain Enterprises
8 RISKS CONFRONTING CHINESE CHAIN OPERATION INDUSTRY, 2011-2012
8.1 Risks of Economic Environment
8.1.1 Influence of Macro Economy on the Industry
8.1.2 Influence of Industrial Competition Environment
8.1.3 Influence of Market Demand Environment
8.2 Analysis on Risks of Sub-industries
8.2.1 Pharmaceutical Chain Industry
8.2.2 Household Appliance Chain Industry
8.2.3 Hotel Chain Industry
9 PREDICTION ON INVESTMENT AND DEVELOPMENT OF CHINESE CHAIN OPERATION INDUSTRY, 2011-2012
9.1 Prediction on Development Trend of Chinese Chain Operation Industry
9.1.1 Market Scale Prediction
9.1.2 Market Trend Prediction
9.2 Prediction on Investment Opportunities of Chinese Chain Operation Industry
9.2.1 Retail Chain Industry
9.2.2 Household Appliance Chain Industry
9.2.3 Pharmaceutical Chain Industry
9.2.4 Hotel Chain Industry
9.2.5 Other Chain Industries
9.3 Investment Opportunities by Region
9.4 Recommendations on Investment and Development
1.1 Definition and Classification of Chain Operation Industry
1.1.1 Definition
1.1.2 Classification
1.2 Business Pattern of Chain Operation Industry
1.3 Status of Chain Operation Industry in Chinese National Economy, 2010-2011
2 DEVELOPMENT ENVIRONMENT OF CHINESE CHAIN OPERATION INDUSTRY, 2011-2012
2.1 Economic Environment
2.2 Policy Environment
2.2.1 Chinese Major Policies on Consumption Encouragement
2.2.2 Policy Trend
3 DEVELOPMENT OF CHINESE CHAIN OPERATION INDUSTRY, 2010-2011
3.1 Overall Industrial Development
3.1.1 Total Retail Sales of Social Consumer Goods
3.1.2 Development of Various Business Patterns
3.1.3 Consumption Price
3.2 Development Characteristics of Chinese Chain Operation Industry, 2010-2011
3.2.1 Development Speed of Department Store Faster than That of Supermarkets
3.2.2 Rapid Developing Online Retail
3.2.3 Frequent Price Wars
3.2.4 Expansion of Large Enterprises Reversing Market Tendency
4 ANALYSIS AND PREDICTION ON COMPETITION OF CHINESE CHAIN OPERATION INDUSTRY, 2010-2012
4.1 Industrial Competition
4.1.1 Ranking
4.1.2 Market Concentration
4.2 Analysis and Prediction on Competition Characteristics of Chinese Chain Operation Industry
4.2.1 Competition Situations
4.2.2 Competition Trend
5 ANALYSIS ON KEY SUB-INDUSTRIES OF CHINESE CHAIN OPERATION INDUSTRY, 2010
5.1 Development of Chinese Pharmaceutical Chain Industry
5.1.1 Status Quo
5.1.2 Competition Pattern
5.1.3 Development Trend
5.2 Chinese Chain Hotel Industry
5.2.1 Overall Situation
5.2.2 Market Demand Analysis
5.2.3 Pricing Analysis of Chinese Economy Hotels
5.2.4 Market Development Prediction
5.3 Chinese Household Appliance Chain Industry
5.3.1 Status Quo
5.3.2 Development Trend
6 ANALYSIS ON CHINESE CHAIN OPERATION INDUSTRY BY REGION, 2009-2012
6.1 General Analysis on Regional Distribution of Chinese Chain Operation Industry
6.1.1 Regional Distribution Characteristics
6.1.2 Analysis and Prediction on Regional Distribution of Scale Indicators
6.2 Analysis on Chain Operation Industry in Shanghai
6.2.1 Economic Environment Analysis
6.2.2 Operations
6.2.3 Development Trend
6.3 Analysis on Chain Operation Industry in Beijing
6.3.1 Economic Environment
6.3.2 Operation
6.3.3 Development Trend Prediction
6.4 Analysis on Chain Operation Industry in Shenzhen
6.4.1 Development Environment
6.4.2 Operations
7 ANALYSIS ON KEY ENTERPRISES OF CHINESE CHAIN OPERATION INDUSTRY, 2010-2011
7.1 Household Appliance Chain Companies
7.1.1 Suning
7.1.2 GOME
7.1.3 Jiangsu Five Star Appliance Co., Ltd.
7.2 Hotel Chain Companies
7.2.1 Jinjiang Inn
7.2.2 Home Inns
7.2.3 Motel 168
7.3 Pharmaceutical Chain Companies
7.3.1 Shenzhen Nepstar Chain Drugstore Ltd.
7.3.2 LBX Pharmacy Chain Co., Ltd.
7.3.3 Guangdong Da Shen Lin Chain Drugstore Co., Ltd.
7.4 Catering Chain Enterprises
8 RISKS CONFRONTING CHINESE CHAIN OPERATION INDUSTRY, 2011-2012
8.1 Risks of Economic Environment
8.1.1 Influence of Macro Economy on the Industry
8.1.2 Influence of Industrial Competition Environment
8.1.3 Influence of Market Demand Environment
8.2 Analysis on Risks of Sub-industries
8.2.1 Pharmaceutical Chain Industry
8.2.2 Household Appliance Chain Industry
8.2.3 Hotel Chain Industry
9 PREDICTION ON INVESTMENT AND DEVELOPMENT OF CHINESE CHAIN OPERATION INDUSTRY, 2011-2012
9.1 Prediction on Development Trend of Chinese Chain Operation Industry
9.1.1 Market Scale Prediction
9.1.2 Market Trend Prediction
9.2 Prediction on Investment Opportunities of Chinese Chain Operation Industry
9.2.1 Retail Chain Industry
9.2.2 Household Appliance Chain Industry
9.2.3 Pharmaceutical Chain Industry
9.2.4 Hotel Chain Industry
9.2.5 Other Chain Industries
9.3 Investment Opportunities by Region
9.4 Recommendations on Investment and Development
SELECTED CHARTS
Chart China's GDP, 2005-2010
Chart Chinese Major Policies on Consumption Encouragement
Chart Total Retail Sales of Chinese Social Consumer Goods, 2006-2010
Chart Gross Revenue of Chinese Top 100 Chain Enterprises, 2006-2010
Chart Chinese Top 20 Chain Enterprises, 2010
Chart Market Concentration of Chinese Top 100 Chain Enterprises, 2003-2010
Chart Sales Revenue of Chinese Pharmaceutical Industry, 2005-2009
Chart Total Sales of Chinese Top 100 Drug Retail Chain Enterprises, 2005-2009
Chart Total Number of Chinese Economy Hotels, 2006-2010
Chart Total Number of Rooms of Chinese Economy Hotels, 2006-2010
Chart Comparison of Advantages and Disadvantages of Chinese 3C Household Appliance Sales Mode
Chart GDP of Shanghai, 2006-2010
Chart Annual Disposable Income Per Capita of Urban Households in Shanghai, 2006-2010
Chart Total Retail Sales of Consumer Goods in Shanghai, 2006-2010
Chart Quantity of Chain Business Outlets in Shanghai, 2006-2010
Chart Total Retail Sales of Consumer Goods in Beijing, 2006-2010
Chart Sales Revenue of Suning, 2006-2010
Chart Sales Revenue of GOME, 2006-2010
Chart Prediction on Retail Sales of Chinese Consumer Goods, 2011-2015
Chart Prediction on Gross Revenue of Chinese Top 100 Chain Enterprises, 2011-2015
Chart China's GDP, 2005-2010
Chart Chinese Major Policies on Consumption Encouragement
Chart Total Retail Sales of Chinese Social Consumer Goods, 2006-2010
Chart Gross Revenue of Chinese Top 100 Chain Enterprises, 2006-2010
Chart Chinese Top 20 Chain Enterprises, 2010
Chart Market Concentration of Chinese Top 100 Chain Enterprises, 2003-2010
Chart Sales Revenue of Chinese Pharmaceutical Industry, 2005-2009
Chart Total Sales of Chinese Top 100 Drug Retail Chain Enterprises, 2005-2009
Chart Total Number of Chinese Economy Hotels, 2006-2010
Chart Total Number of Rooms of Chinese Economy Hotels, 2006-2010
Chart Comparison of Advantages and Disadvantages of Chinese 3C Household Appliance Sales Mode
Chart GDP of Shanghai, 2006-2010
Chart Annual Disposable Income Per Capita of Urban Households in Shanghai, 2006-2010
Chart Total Retail Sales of Consumer Goods in Shanghai, 2006-2010
Chart Quantity of Chain Business Outlets in Shanghai, 2006-2010
Chart Total Retail Sales of Consumer Goods in Beijing, 2006-2010
Chart Sales Revenue of Suning, 2006-2010
Chart Sales Revenue of GOME, 2006-2010
Chart Prediction on Retail Sales of Chinese Consumer Goods, 2011-2015
Chart Prediction on Gross Revenue of Chinese Top 100 Chain Enterprises, 2011-2015
