Major strides by Taiwan's franchise industry in China and the branding effect this has created has attracted the attention of big international investment funds such as Carlyle Group and Baring Asset Management, a report in the Chinese-language Commercial Times said on Saturday.
These funds have switched focus from the high-tech industry to the franchise industry after investing more than US$200 million in the sector, the report said.
Carlyle alone has set up a US$3 billion Asian fund that invests in food and beverage franchises in Asian countries, including Taiwan.
EYEING CHINA
At a forum on Friday organized by the Association of Chain and Franchise Promotion, Taiwan (
As a result, foreign equity firms are lining up to cash in on the success. Carlyle has invested US$21 million in Dio Coffee (
In addition, Chen Dingzong (
INSIDE TRACK
Xie Yinghai (
Taiwanese businesses understand what Chinese people want, especially when it comes to food and beverages, Xie said.
Xie said that there was a three-year window of opportunity for Taiwanese firms, as Chinese companies were still fumbling to organize their operations, while European and US companies had difficulties operating in a Chinese business climate.
This has given Taiwanese businesses that are well established in China the opportunity to take the lead with their technology and management experience.
TAKE THE CAKE
Xie said support from foreign investors would help Taiwanese franchises open a flood of outlets and dominate the market.
William Wang (
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