Social Economy Development

Social Economy Development

Tertiary industry in China

Three key industrial economic sectors

Primary (raw materials) industry Secondary (goods production) industry Tertiary (service) industry

Allan.G..B.Fisher. The Clash of Progress and Security ， London ： Macmillan ， 1935.

Outline

1. Introduction1. Introduction 2. Development of the Tertiary industry 2. Development of the Tertiary industry

in Chinain China 3. Franchise chain operation in the 3. Franchise chain operation in the

Tertiary industryTertiary industry 4. Shopping Online4. Shopping Online 5.Discussion5.Discussion

1. Introduction1. Introduction

The Tertiary industry involves the provision of services to other businesses as well as final consumers.

Tertiary industry: • banking, finance, insurance, investment, and real estate services; • wholesale, retail, and resale trade; • transportation, information, and communications services; • professional, consulting, legal, and personal services; • tourism, hotels, restaurants, and entertainment;• repair and maintenance services; • education and teaching; • health, social welfare, administrative, police, security, and defence services.

1. Introduction1. Introduction

Why the Tertiary industry is important in China?

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

2.1 Tertiary industry

Photographer : Wang Wenlan

Planned economy to market economy; shortage economy to consumption economy

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

Form of sector division in 1985

2.1 Tertiary industry

• Capital goods producing industry

• Consumption products producing industry

• Primary industry

• Secondary industry

•Tertiary industry

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

2.1 Tertiary industry Socialist transformation in 1958Founded in 1949 Reform and opening up in 1978

• Comparably completed service system in cities

• From Consumption Cities to Productive cities .

• Small societies were organized by factories.

• Self service .

• Development in Service capacity: market booming,jobs providing, living conditions improving …

• The percentage is comparably lower

• The structure is in developing .

• Weakness of quality, technology and management.

•Regional disproportion.

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

2.2 The percentage is comparably lower

Percentage of the tertiary industry in GDP

Developed Countries 65%

Moderately developed country 50%

Developing countries 30%

Tab 1. Proportion comparison of the tertiary industry in GDP

Percentage of the tertiary industry in GDP

1980 21.6%

1996 32.8%

2000 39.0%

2008 40.1%

Tab 2. Proportion of the tertiary industry in GDP of China

Resource: Statistic data from National Bureau of Statistics of China

Tab 3. Proportion of industries in GDP of developed countries

Primary Secondary Tertiary

The U.S.(1969-1979)

25.8% 37.3% 36.5%

Canada (1919-1923)

20.8% 42.4% 36.8%

Britain (1951-1961)

19.5% 36.3% 44.2%

Japan (1952-1953) 22.4% 39.4% 39.2%

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

2.3 Regional disproportion

Percentage of the tertiary industry in GDP

Beijing 73.2%

Shanghai 53.7%

Guangdong 42.9%

Henan 28.6%

Shanxi 32.9%

Liaoning 34.5%

Tab 3. Proportion comparison of the tertiary industry in GDP of 2008

Pupils were in their way to school, Yunnan province on 2007.9.4.

Hangzhou Bay Bridge, the longest Bridge in the world, was finished on 2007.6.26.

2.3 Regional disproportion

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

2. Development of the Tertiary 2. Development of the Tertiary industry in Chinaindustry in China

Finance, insurance, social security system is in developing.

Science and technology, information, consulting service is in developing.

2.4 The structure is in developing.

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

(from the French for free) is a method of doing business where in a franchisor licenses trademarks and methods of doing business to a franchisee in exchange for a recurring royalty fee.

In China's commercial service sector, franchise chain (FC) operation has developed noticeably in recent years.

3.1 Introduction

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

3.1 Introduction

0

1000

2000

3000

Number ofFranchi si ng Systems

410 600 1200 1900 2100 2320

2000 2001 2002 2003 2004 2005

3.2 Franchise systems in China increasing rapidly and steadily

Source: Year Surveys By China Chain Stores & Franchise Association (CCSF)

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

Contributions

Jobs 3,360,000

Investment （ Billion US$ ） 10.5

Sales （ Billion US$ ） 52.5

Tab.4 Economic Contributions From Franchising in China, 2005

Source: 2005 Year Survey By CCFA

3.2 Franchise systems in China increasing rapidly and steadily

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

The fake oneThe real one

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

Tu Jia Shaobing (sesame seed cake ) was very popular in 2006 in Shanghai.

Dozens of such snack-bars appeared in one night.

3. Franchise chain operation in 3. Franchise chain operation in the Tertiary industrythe Tertiary industry

BaBi steamed bun appeared in Shanghai in 2003, then became popular.

Dozens of such snack-bars appeared in one night.

Several months the brand was registered by the original chef.

One or two years later, fake BaBi disappeared.

Babi steamed bun break through 100 snack-bars nationwide in February 2008.

Have you shopped online with the internet?

What are the advantages of shopping online?

4.4. Shopping Online

4.4. Shopping Online

5.Discussion5.Discussion

If you will make your career in China, will you choose the tertiary industry? If yes, which industry interests you?