沙利文高管受邀出席2024中国商业特许经营峰会

2024China Business Franchise Summit

Currently, rational consumption and the pursuit of quality-price ratio have become the new consumer trend leading society. Chain brands with a complete supply chain, mature business models, and highly standardized operational management systems can gain bargaining power from upstream suppliers. At the same time, they also bring consumers a satisfactory consumption experience with high cost-effectiveness. With the support of the socio-economic environment and the orderly iterative development of the market, the degree of domestic chain operation will rise accordingly, further increasing the chain rate and bringing more development opportunities. In this era of stock competition, whether it is the iteration of traditional models or the innovation of new business models, many excellent cases worthy of reference have emerged, providing directional guidance for brand development under the new economic situation.

Recently, with the theme of "Breaking Boundaries and Creating New Possibilities", a duration3day2024The China Business Franchise Summit was successfully held. The conference was jointly organized by the Shanghai Chain Operation Association, Shanghai Bohua International Exhibition Co., Ltd., and Shanghai Yibixun Exhibition Co., Ltd. With a comprehensive, diversified, and international perspective, it gathered authoritative guests from leading and emerging brands, commercial real estate, suppliers and service providers, industry media, capital institutions, and more. Leading brands such as Laolongjing, Zhengxin Chicken Bar, Nuova Coffee, and Ningji made their appearances one after another to discuss the current industry situation and explore the development trends of franchising.

Frost & SullivanFrost & SullivanJia Pang, Partner and Managing Director of Frost & Sullivan Greater China, was invited to attend the main forum of the conference and participate in a session on “Chain Ecosystem Co-Symbiosis" themed roundtable discussion, with Qiao Bin, Vice President of Shanghai Chain Operation Association and Chief Architect of Shanghai Hezhi Consulting & Planning Company, Guo Ji, Founder of Zhongshen Law Firm, Shen Zhonghai, Vice President of Falsailong, Li Huomiao, Founder of Chihuo Management Consulting, and XinladaoCEOTogether, Shi Qi and the team discussed the Chinese catering chain ecosystem, exploring new trends and developments in the franchise industry.

Partner and Managing Director of Frost & Sullivan Greater China Region Jia Pang

The following is a summary of Jia Pang's views:

As an investment strategy consulting firm, how does it view the development of the chain industry post-pandemic?

According to Jia Pang, the scale of China's catering market has reached a record high after the epidemic. China is the world's second-largest catering market, only after the United States, and its catering industry holds a pivotal position globally. This not only reflects the strong vitality of China's economy but also demonstrates the importance of the catering industry within the national economic system.

In the past decade, China's catering industry has undergone qualitative changes in market scale and consumption patterns. The scale of China's catering market has shifted from2014year2.9Trillion growth to2019year4.7Trillion, with an annual compound growth rate of10%.2020Affected by the pandemic in 2020, the scale of the Chinese catering market declined to3.9Trillions, and the catering market has fluctuated upwards during the subsequent two years of the pandemic.2023The year is the beginning after the pandemic, and China's catering industry has seen a historic breakthrough, entering5A new development stage worth trillions, national catering revenue52890Yuan billion, up year-on-year20%.2023In [year], with the orderly resumption of production and life, consumer promotion policies continued to be effective. Combined with the comprehensive recovery of industries such as culture and tourism, performances, etc., it promoted the rapid recovery of the catering industry, reflecting the characteristics of strong resilience, great potential, and vitality of the catering economy.

Secondly, expanding store scale and increasing the catering chain rate remain the main themes of the catering industry after the pandemic. The chain rate of Chinese catering continues to rise, from2017Year-end2022During the year, the chain rate decreased from9%Rising all the way2022nearly20%During the pandemic, it has also steadily improved. However, compared with some developed countries around the world, there is still significant room for improvement in the catering chain penetration rate in China. Specifically, Chinese cuisine is the broadest segment in the catering industry. According to data analysis by Frost & Sullivan, the Chinese cuisine market accounts for nearly80%It is highly recognized by the consumer market and has a huge user base.2017In [year], the scale of Chinese cuisine was about3.2trillion, with a Chinese catering chain penetration rate of about15%After several years of development,2023The scale of Chinese-style catering exceeded expectations4Trillion, with the chain penetration rate of Chinese cuisine approaching18%are expected2027In [Year], the scale of Chinese cuisine will be close to6Trillion, and the chain penetration rate of Chinese catering will exceed20%.

What is the future investment value of chain brands?

Jia Pang stated that chain catering brands are still actively embracing the capital market, hoping to further expand their scale and build a competitive advantage through external funding support. The industry is also preparing to apply.IPO listingThere are now quite a number of catering enterprises that are sprinting towards the capital market. Overall, we believe that the capital market still has confidence in catering consumption. In the future, there may be a large number of highly representative leading catering enterprises entering the capital market, and the concentration and chain rate of the catering industry will also become higher and higher.

In addition, future niche brands within the same sector will be able to unlock greater investment value. We also expect to see more Chinese chain brands in the capital market, but the key lies in telling a good story about the niche sector and the brand itself. According to Frost & Sullivan's insights, especially taking into account some distinctive Chinese fast-food brands, such as Hefu Lao Mian on the noodle segment, Yu You Yi Zhi in the rice category, and Chinese hamburger Tastine, these niche industries have long had large-category offerings and lacked leading brands. There is significant room for scale-up and chain expansion in the future.

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*The above order is not sequential and is arranged in reverse chronological order by listing time.

Executives from Frost & Sullivan are invited to attend the 2024 China Business Franchise Summit

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