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Jan. 26, 2017
Expansion of franchise overseas, utilization of "Korea" brand
The Korean meat franchise market was saturated in 2015, it said that exporting to overseas or to China as the way out. With solicitation of surroundings, they participated in the Shenzhen fair for getting information but opportunities did not come. Three employees were sent to China such as Shanghai for meeting people there, trying foods, and learning culture.Anyone wants to do business in China is supposed to know China well before the business start. After two years Shanghai and Cangzhou opened stores following the first store in GuangZhou. The average daily sales at Guangzhou is 27,100 yuan (about 4.7 million won), three times higher than the average sales of 1.5 million won in Korean domestic stores.
It is the story of legitimate Samgyeopsal (pork belly) specialty shop brand "Cuiga". Korea Trade Investment Promotion Agency (KOTRA) issued a collection of successful cases of overseas expansion of Korean franchise enterprises on the 22nd. It is a success story of ten companies including Korean cosmetics skin care specialty store Selenik,etc. These companies achieved an average annual operating profit of 1.65 million dollars in four years overseas.
The type preferred by Korean companies when they make overseas expansion is the master franchise system. It contracts with the local business partner and the business partner acts on the affiliated business for the area concerned.