Gialen, one of the largest cosmetics retail chains in China, has announced that starting from 2012, the company will formally introduce the franchised model, with Guangdong province as its first stop.
At present, Gialen has over 400 chain stores across China, of which over 90% are self-owned stores. The company said that by 2020, it is expected to have over 10,000 stores, including 3,000 self-owned stores and 7,000 franchised stores.
Latest statistics showed that by December 31, 2011, Gialen has developed 425 stores, covering first-tier cities and provincial capitals such as Beijing, Shanghai, Chongqing, Chengdu, Wuhan, Shenzhen, and Xi'an.
Prior to this, the retailer launched the franchise strategy in the early stage of its development; however, it was suspended in 2008 due to management problems. After three years' adjustment, the franchise development is back on Gialen's agenda again. Cai Ruqing, chairman of Gialen, revealed that Gialen will first implement trial operation of the franchise model in Guangdong from 2012, with Foshan, Zhaoqing, Qingyuan, Yufu, and Heyuan as initial markets.