More than 70 representatives of retailers, associations and small businesses gathered on October 29 at the Second ShopAndMall.Ru retail franchising conference. The leitmotif was the discussion of the prospects for franchising - both for franchisors and entrepreneurs-franchisees. Much less has been said about the crisis than at the first such conference in the spring.
This time a particularly heated discussion revolved around the topic of financing a franchise business. A new financial instrument for franchisees was proposed by Andrey Litvinov, senior vice president of Probusinessbank. Malkhaz Alasania, Director of the Franchising Department of the “G.M.R.” company, spoke about new formats of cooperation with the state to support franchising. Planet of hospitality ”. The speech of the President of the Tomsk Club of Young Entrepreneurs Pavel Podlipsky caused an ambiguous reaction. According to him, franchising in remote regions is in its infancy, and in small cities they do not know about it at all, in particular, due to the lack of administrative and financial resources from regional entrepreneurs.
At the Second Retail Franchising Conference ShopAndMall.Ru, EMTG CEO, Member of the Board of Directors of the Russian Franchising Association (RAF) Yekaterina Soyak spoke about the state of franchising in the country in the post-crisis period. According to the RAF, now Russia is one of the leading countries in terms of the development of franchising, but we are still far from the leading powers in terms of franchising.
There are 485 franchisors and over 20 thousand franchise outlets in Russia. According to these indicators, our country is barely ahead of Greece, whose population is more than 10 times less. The leading country in franchising is the United States (about 750 thousand franchising enterprises), China and Australia are also among the top three. Meanwhile, Malkhaz Alasania, director of franchising department of “G. MR Planet of Hospitality ”, said that Russia is ahead of other countries in terms of the growth rate of franchise outlets - over the past three years, the increase was 98%. More than half of the franchise systems in the country have been operating for more than 5 years, 43,5% are younger franchises. 62% of the market is occupied by domestic brands. The systems with minimal investment for opening a point (from 1 to 5 million rubles) have received the greatest development. Conference speakers ShopAndMall.Ru presented interesting data for comparison. If in Russia franchising develops mainly in retail and public catering (46% and 22%, respectively, according to EMTG, or 57% and 16%, according to the RAF), then in the USA franchises are more common in the B2B sphere (28% ) and fast food (24%), while retail franchises account for only 9%. This is not least due to the financial component - abroad loan rates for franchisees can be below 7% and even 4% in France (data from EMTG). Whereas in Russia - the only analogue of such loans - credit programs for small businesses, the rates for which are not lower than 18%. This is partly why the potential for the development of franchising in Russia is enormous, but at the same time it is quite risky.