Large and small trends in franchise development in 2022

  1. There will be some popular or emerging positions in franchising companies. For example, site selector, e-commerce operator, community marketer, ERP information operator, network marketer, policy analyst, big data analyst, buyer, etc.
  2. The momentum of network investment continues to be strong, while the physical exhibition continues to go downhill. The function of physical exhibition is gradually relegated to displaying enterprise image, realizing face-to-face communication, announcing the existence of enterprises or even completely out of respect and obligatory support to the exhibition organizers, etc.
  3. Network marketing becomes more and more popular, and is directly implemented by enterprises with the help of external forces. For example, employing full-time network marketing personnel, setting up a special network marketing department, and popularizing network marketing for the whole staff, etc.
  4. Primary and secondary industry manufacturers and tertiary industry distributors and agents began to build their own channels, concern or enter the franchise business.
  5. The overall economic trend is steady, the total investment in potential franchises will continue to go up.
  6. Franchisees are more mature and rational. This requires companies to create a truly excellent franchise program to, rather than rely on false propaganda to solicit to join.
  7. The court began to pay attention to the problems in the field of franchising, the franchisee’s awareness of the rights of the deceived increased, diversified means of protection.
  8. In the “double creation” “four” stimulus, the development of franchises ushered in a golden period. Mass entrepreneurship, innovation for the “dual innovation”; crowdsourcing, crowdsourcing, crowdfunding, crowdsourcing for the “four”.
  9. Highly educated personnel into the franchise business. The entry of highly educated personnel will improve the overall quality of the service industry and the retail industry, technology content and modernization process, and promote the healthy development of the industry.
  10. The expansion of the record enterprise slows down, from quantity to quality of the benign transformation. “Open one, become one,” the sense of soundness to rise, not recorded enterprises continue to expand and close stores like crazy.
  11. franchise capital market began to cool down, we gradually realize that the franchise itself is one of the best ways to finance. Because the franchise “melt” in addition to the franchisee’s capital, may also include the franchisee’s contacts, experience, customers and many other very valuable resources for store operations.
  12. franchise business market began to sink rapidly. Third and fourth-tier cities and rural areas and other outer edge of the market increasingly become the focus of new competition for business, the outer edge of the market has the world.
  13. More and more franchisees are committed to the post-investment stage: construction, supervision, single-store profitability, replication and cloning, quality management, innovation and research and development, and continuous improvement.
  14. Franchising-related knowledge began to popularize. To vulgarization, performance, stage, error, packaging as the characteristics of social training is increasingly extinct, formal university education continues to rise.
  15. Consultant consulting, planning market tends to clarify and purify, the consultant consulting company to wash away the sand.
  16. foreign franchisees continue to enter China in large numbers. For example, groups in the domestic investment and the holding of special foreign enterprises project exhibition.
  17. The internationalization trend of local franchising continues to strengthen. For example, local enterprises began to group to foreign investment and development, or acquisition into China’s local chain of giants.
  18. Modern high-tech means will be widely used. Such as RFID (electronic tags), ERP (enterprise resource planning), face recognition, cloud computing, big data, micro-payment, LBS (location-based services), VR, 3D, AI, data capture, etc. Technology changes life, technology also changes franchising.
  19. Online screening of real and fake franchisors and searching for negative information will become the first hurdle in selecting franchisors and projects. Franchisee companies should try to improve the success rate of franchising and maintain a good relationship with franchisees.
  20. The entire franchise market is becoming increasingly formalized. Wafer Franchise Index (WFI Index) in the law, business, morality, feelings, will become the most important indicators to judge the value of franchisee projects and franchisee selection projects.
  21. Single-store format polarization: large and full, small and sophisticated, community stores are becoming popular.
  22. Industry sectors continue to expand. When you take the essence of the soul of the franchise “copy success, cloning wealth” as a concept and thinking, not just a channel to sell products or services, and not to open a store, you will find that franchising can be almost anything, it can be applied in any industry, any field.
  23. Direct, voluntary and franchising at the same time, joint ventures, partnerships, cooperation and other variants of franchising more and more. Business model innovation and variants increase, such as “separation of powers, the combination of three powers” model.
  24. franchisee companies to do franchise time shortened. Can not delay and wait, both can and should be more quickly to build a franchise system.
  25. Circle, platform, resource exchange awareness and economic highly permeable to the chain industry. The lack of own resources, no traffic entrance, poor management and marketing capabilities, brand effect is not strong, the supply chain bargaining power of weak single stores and small chains more dependent on the platform.
  26. The chain store market in the middle and high-end consumer industry is seriously shrinking, the phenomenon of bankruptcy, switching to other businesses and lowering the grade of enterprises is rapidly emerging in large numbers, and light luxury has become a new trend in consumption. In the premise of reasonable quality of low-cost products and services chain business, has become one of the most prominent trends of the times.
  27. Multi-branding of the franchisee. For example, a franchisor will have several franchisee brands and franchise system at the same time. At present, there is a very obvious trend of multi-branding for franchisors who rely on the success of a particular brand, the reasons and purposes of which include maximizing the resources of potential franchisees with multiple selection purposes, providing deeper and wider extended value-added services for established customers, absorbing excess capacity in the supply chain or production plants, occupying more relevant markets, deterring competitors, digesting inventory, changing the image of established brands, responding to younger generation of consumers, etc. Even some brands have planned a multi-branding strategy from the beginning.
  28. chain of three forms, franchising continues to overtake the direct chain, voluntary chain, franchising has become the mainstream of chain development and soul. The original chain companies that insist on doing direct operation, also gradually realized the benefits of franchising and began to switch to franchising, such as insisting on 17 years of direct operation of the Chow Hei Duck in 2019 after a significant decline in profits, decisively released to join.
  29. Industry intermediary supermarket gradually hot. The industry intermediary supermarket is a platform to bring together service providers in an industry, and then the platform provides common services for each service provider. The early ones are Ctrip and Yilong, and the later ones are hungry, Meituan, Medicine to which, Where to go, DDT, UBER (Uber) and so on. As a traditional chain store merchants, should pay full attention to and take advantage of the industry intermediary supermarket this new thing.
  30. Responding to the explosion of “door-to-door” and “mobile” services for the house people, lazy economy and busy people. For example, in the takeaway, CNNIC (China Internet Network Information Center) released the “China Internet Development Statistics Report” shows that the scale of Chinese online takeaway users exceeds 500 million, behind such a large scale is the “door-to-door” “mobile” services One of the manifestations of the explosion. Therefore, a variety of vending machines or cabinets, GO stores, front warehouse stores began to grow.
  31. The consultants of the chain companies are mainly teachers of regular universities who integrate theory and practice. The consultants of chain companies have gradually evolved from lawyers to executives or entrepreneurs of successful franchisee companies, then to the transformation of the old consultants and advisors or planners, and finally to the highest intellectual class of today’s formal university teachers who integrate theory and practice.

  32. The operating principles of chain companies change, from business-centric, to a combination of law and business as the center, the future will be centered on law, business, morality and emotion.
  33. Physical stores and online stores tend to integrate and integrate, online stores and physical stores penetrate each other. The price gap between the goods of physical stores and online stores will gradually narrow, and the profits of merchants will decrease. This trend will lead to an innovative increase in emerging value-added services in physical stores as well as the use of virtual technology to increase categories, the use of online marketing and cross-border sharing of consumers, which will eventually lead to a reduction in the size of physical stores, a decrease in rents, and an increase in competition between stores. Online stores are using new technologies to enhance the in-person experience for customers and are partnering with brick-and-mortar stores to use them as pick-up and delivery points for online stores.
  34. The era of big franchising has arrived: an all-encompassing channel convergence that tends toward a Bruce Lee-style cutthroat approach. Franchisees should draw an inspiration from Bruce Lee’s example: when doing franchising, they should take the business model of franchising as the basis and main line, and at the same time, adopt and use the strengths of various business models, including but not limited to old models and new models, with an open mind. In this way, the model is the real model and the franchise is the real franchise.
  35. There will be more and more industry regulations or standards.
  36. Virtual experience will be prevalent. In addition to the traditional experience marketing emphasizing seeing, hearing, smelling, touching, tasting, feeling, etc., with the development of technology, more and more stores begin to launch virtual experience marketing, such as the virtual fitting launched by Uniqlo and other clothing stores, the virtual home furnishing launched by IKEA, the virtual makeup trial launched by Sephora, etc.
  37. Brand co-branding and peripheral products are becoming prevalent.
  38. The trend of national trend is getting stronger. With the strength of China and the increase of national self-confidence, the trend of national trend with national culture as the core is very obvious. The report “Baidu 2021 National Tide Pride Search Data” released by Baidu shows that the attention of Chinese brands grew from 38% to 70% during the 10 years from 2009 to 2019. 12.6 billion searches were conducted on Taobao for the word “national tide” in 2018, and 12.6 billion searches were conducted on some rebate platforms from January to July 2019. The number of searches for the word “Guochao” on some rebate platforms increased by 392.6% year-on-year in July 2019. Li Ning and a large number of local brands have made great achievements with the national tide.

  39. Carbon Dafeng and carbon neutral have become one of the core competencies of enterprises. China has been highly involved in the global carbon summit and carbon neutral plan and has taken the lead. The National People’s Congress in 2021 included carbon summit and carbon neutral in the Government Work Report for the first time.
  Under this situation, the carbon peak and carbon neutral performance of franchising and chain management enterprises has become more than a simple act of public welfare, but more often included in the assessment of the government and even regulations. On the other hand, as the public’s awareness of carbon peaking and carbon neutrality gradually increases, the performance of enterprises in carbon peaking and carbon neutrality programs will become one of the most important indicators for consumers to choose products and services. Therefore, it has become an irreversible trend for enterprises to make green and low-carbon innovation changes and to comply with the development trend of energy saving, emission reduction and eco-friendliness, and the performance in the carbon peak and carbon neutral plan will definitely become one of the core competitiveness of enterprises.
  40. New consumer brands around the Z generation have emerged. Especially in the new tea and beverage, FMCG, casual snacks, beauty, fashion, trendy games, bakery, etc., a large number of new consumer brands specializing in the main consumer group of Generation Z have rapidly become a powerful force to be reckoned with in the franchising and chain business field through online voice waves and offline physical stores’ net popularity.
  41. New ways of marketing and business models are emerging. For example, the popular “limited edition”, “trendy play”, “delivery only”, “blind box” “co-branding”, “small video”, “animation”, “topic out of the circle”, “private domain Operation” and other methods of play.
  42. The “three highs” of the products and the “six” of the stores are obvious. The “three highs” refers to high value, high quality and high cost performance. The “six” refers to youthfulness, fashion, entertainment, fun, socialization and digitalization.
  43. The new layout of globalization in the post-epidemic era has led to big changes in the chain business.
  Companies will change the layout requirements and results of almost all links in the industrial chain, including primary, secondary and tertiary industries, such as research and development, design, production, logistics and sales. The industries of countries and governments that previously positioned themselves as big manufacturing countries, design countries, science and technology countries, trade countries, tourism countries, etc., while neglecting labor-intensive industries or primary and secondary industries are beginning to suffer the ill effects of hollowing out and imbalance. People are beginning to wake up to the importance of coordinated development of various industries. Enterprises, like countries, are beginning to realize the coordination of self-employment and subcontracting out, as well as reconsidering the rationality and risks of the traditional globalization concept of global site selection, global sourcing, global processing and other industrial chain layouts.
  From a macroscopic point of view, the change in the requirements and results of the layout of the links in the industrial chain will naturally change the layout of the global industry, science and technology, talent and other concentration centers in a chain reaction, which in turn will affect the layout of almost every aspect involved in globalization, including politics, economy, culture, military and so on. These, in the end, must directly affect the market layout of enterprises, because enterprises need to obtain cost-effective resources from different places, such as human, capital, technology, raw materials, production, sales, etc.

  From a microscopic point of view, for franchising and chain businesses, because the network is increasingly international and global, such as design and development centers are best selected in the industry’s fashionable frontier, manufacturing centers are best selected in the cheap labor, close to raw materials, logistics centers are best selected in places with developed transportation, headquarters operations center is best selected to correspond to the concentration of talent, investment centers are best selected in the distance from the model Flagship store near the location. To enter more countries and regions around the world, companies will most likely have to purchase some local raw materials and use local labor in order to localize and localize their stores, so they need to reconsider the new layout of the post-epidemic era under the guiding principles of PEST (PEST analysis refers to the analysis of the macro environment).
  44. Virtual idols are popular. From the early stage of entertainment display to the current stage of comprehensive development and realization, virtual idols are becoming a powerful tool for franchising & chain businesses to take off, or even one of their core competencies. Companies including McDonald’s, KFC, Watson’s, etc. are already ahead of the curve.
  45. Historical opportunity: the “Three Villages” policy and the franchise boom of four types of people.
  In 2021, a clear phenomenon and a major event in China, that is, the state vigorously encourage retired soldiers, college students, migrant workers, scientific researchers, etc. to return to the countryside to stay in the countryside to start a business.
  On March 10, 2021, the National Development and Reform Commission, the Ministry of Finance, the People’s Bank of China, the CBRC, the Securities Regulatory Commission and other 14 departments jointly issued the “Opinions on Strengthening the Construction of Entrepreneurial Parks for Returning to the Hometown by Relying on Existing Various Parks”.
  In fact, according to statistics, the total number of people returning to their hometowns to start up and innovate in 2020 reached 10.1 million (of which the number of migrant workers accounted for 70%), an increase of 1.6 million or 19% over the previous year. Therefore, returning to the countryside to stay in the countryside has become a definite pattern and trend. Therefore, in 2022, Chinese franchisee enterprises must seize this rare historical opportunity to embrace the return to the countryside to stay in the countryside entrepreneurial personnel, while taking advantage of their own market sinking, gold-sucking county economy, recruiting franchisees strategy of the times.