Social Economy Development Tertiary industry in China

Social Economy Development Tertiary industry in China

Three key industrial economic sectors n n n 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 n n n 1. Introduction 2. Development of the Tertiary industry in China 3. Franchise chain operation in the Tertiary industry 4. Shopping Online 5. Discussion

1. Introduction n n 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. Introduction n Why the Tertiary industry is important in China?

2. Development of the Tertiary industry in China 2. 1 Tertiary industry Planned economy to market economy; shortage economy to consumption economy Photographer : Wang Wenlan

2. Development of the Tertiary industry in China 2. 1 Tertiary industry Form of sector division in 1985 • Primary industry • Capital goods producing industry • Secondary industry • Consumption products producing industry • Tertiary industry

2. Development of the Tertiary industry in China 2. 1 Tertiary industry Founded in 1949 Socialist transformation in 1958 Reform and opening up in 1978 • From Consumption Cities to Productive cities. • Comparably completed service system in cities • Self service. • Development in Service capacity: market booming, jobs providing, living conditions improving … • The percentage is comparably lower • Regional disproportion. • Small societies were organized by factories. • The structure is in developing. • Weakness of quality, technology and management.

2. Development of the Tertiary industry in China 2. 2 The percentage is comparably lower Tab 1. Proportion comparison of the tertiary industry in GDP Percentage of the tertiary industry in GDP Developed Countries 65% Moderately developed country 50% Developing countries 30% Tab 2. Proportion of the tertiary industry in GDP of China Tab 3. Proportion of industries in GDP of developed countries Percentage of the tertiary industry in GDP Primary Secondary Tertiary The U. S. (1969 -1979) 25. 8% 37. 3% 36. 5% Canada (1919 -1923) 20. 8% 42. 4% Britain (1951 -1961) 19. 5% 36. 3% 2008 Japan (1952 -1953) 22. 4% 39. 4% 40. 1% 1980 1996 2000 21. 6% 32. 8% 39. 0% 36. 8% 44. 2% 39. 2% Resource: Statistic data from National Bureau of Statistics of China

2. Development of the Tertiary industry in China 2. 3 Regional disproportion Tab 3. Proportion comparison of the tertiary industry in GDP of 2008 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%

2. Development of the Tertiary industry in China 2. 3 Regional disproportion 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. Development of the Tertiary industry in China 2. 4 The structure is in developing. n Finance, insurance, social security system is in developing. n Science and technology, information, consulting service is in developing.

3. Franchise chain operation in the Tertiary industry 3. 1 Introduction n (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. n In China's commercial service sector, franchise chain (FC) operation has developed noticeably in recent years.

3. Franchise chain operation in the Tertiary industry 3. 1 Introduction

3. Franchise chain operation in the Tertiary industry 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 the Tertiary industry 3. 2 Franchise systems in China increasing rapidly and steadily Tab. 4 Economic Contributions From Franchising in China, 2005 Contributions Jobs 3, 360, 000 Investment（ Billion US$ ） 10. 5 Sales（ Billion US$ ） 52. 5 Source: 2005 Year Survey By CCFA

3. Franchise chain operation in the Tertiary industry The real one The fake one

3. Franchise chain operation in the Tertiary industry n Tu Jia Shaobing (sesame seed cake ) was very popular in 2006 in Shanghai. n Dozens of such snack-bars appeared in one night.

3. Franchise chain operation in the Tertiary industry n Ba. Bi steamed bun appeared in Shanghai in 2003, then became popular. n Dozens of such snack-bars appeared in one night. n Several months the brand was registered by the original chef. n One or two years later, fake Ba. Bi disappeared. n Babi steamed bun break through 100 snack-bars nationwide in February 2008.

4. Shopping Online n n Have you shopped online with the internet? What are the advantages of shopping online?

4. Shopping Online

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