Report on franchising in Poland 2005/2006
Author Michal Wisniewski Aceasta adresa de e-mail este protejata impotriva spamului, JavaScript trebuie activat a putea vizualiza pagina.
The report is published first in Franchising Info Magazine and www.franchising.info.pl the most important Polish Franchise Portal
Poland: Boom in franchising. PROFIT system consulting company, specialized in franchise consultancy has announced its annual Report on franchising in Poland. The report reveals that 2005 was the year of the highest growth in Polish franchising. In 2005 63 companies embarked on development through franchises and further 6 commenced expansion through agency networks (partnerships).
Franchise market in Poland is rapidly growing – the report says. Before 2002 we observed an emergence of an average of 10-15 networks annually, in 2002 there were 26 new systems launched, 27 in 2003 and 39 in 2004. The absolute record was broken in 2005 when the number of franchise systems increased by 64, number of agency networks raised by 6. At the end of 2005 there were 258 franchise systems and 19 agency networks operating in Poland. According to PROFIT system, by the end of 2006 Poland will house over 300 franchise networks and about 25 agency networks. In 2005 we also witnessed 14 withdrawals from the market (mostly young domestic networks). The most often reason for this was aquisition (Slovnaft taken over by Lotos) or withdrawals on a very initial stage – these fraanchisors did not find any enterpreneurs ready to join their systems.
We witness a very dynamic rise of popularity of franchising, construed as a method of running one’s own business – People in Poland are more often inclined to invest their savings in their own business, however most of them do not want to take a risk of building the company from the very beginning. As they look for proved ideas, they choose franchising.
Structure of the market
Franchise networks operate in every sector of Polish economy (distribution, services, manufacturing). Agent networks are concentrated in two sectors: finances (agencies of Bank BPH, PKO BP and Dominet Bank) and small grocery stores (ex. Kolpolter and �abka). Franchising is more often considered as an alternative for stock exchange debut or seeking strategic investor. It is also chosen as a chance for development of existing network to benefit from the scale effect. On the other side agency networks are established by companies to improve their efficiency of retail networks.
Foreign networks
There are 83 foreign franchise systems operating in Poland. Most foreign franchising systems operating on the Polish franchise market came from Germany (13), France (12) and the USA (11). German franchisors are developing mostly in clothing & footwearing sector (4) as well as home article distribution (3) whreas French ones are operating mainly in hairdressing & cosmetics and groceries (5) and groceries (3). American franchises are growing mostly in services for individuals (3), catering (2) and clothing & footwearing sector (2). In 2005 the biggest number of foreign networks came from Germany (4), Czech Republic (3) and Spain (3).
Bright future for Polish franchising
As the economy in Poland is undergoing increasingly dynamic development, Polish franchising will be on a constant rise, PROFIT system forecasts.
However Polish franchise market is already dominated by domestic networks, which is typical for mature markets – Wi�niewski explains – we can observe growing interest of foreign chains seeking their chance in high potential of Polish economy and relatively low saturation of franchise market.
By the end of 2006 Poland will house over 300 franchise networks and about 25 agency networks, PROFIT system forecasts. By comparison, in Spain, which is the most comparable country to Poland, there are currently over 900 franchise systems, with 200 establish just in 2005.
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