BabyOne and Foxtown China sign master franchise agreement in Shanghai
After around 12 months of preparation work and negotiations, the BabyOne franchise company signed an agreement with Foxtown China on 22 May 2006. The Chinese business has, therefore, become the master franchisee of this German network which sells clothes and accessories for babies and young children.
Wilhelm Weischer, managing director of BabyOne, expressed his pleasure after returning from his 3-day visit to China, “I am convinced that Foxtown China is the right partner for our network and that it will implement the BabyOne concept in such a way that it becomes a success within a short period of time. The government policy encouraging families to have only one child means that Chinese families invest a lot of money in their one offspring and have high expectations as far as service, quality and design are concerned. German products are very popular in the country.” According to BabyOne, plans are to start off with two pilot businesses and then expand towards the end of 2007.
Davie Lu, CEO of Foxtown China, believes that franchising shall become a dominant factor on the Chinese market in the future. He is aiming to open up to 30 BabyOne stores in the country. Current statistics reveal that there are more than 1,000 franchise systems in China in over 50 branches with an annual growth rate of up to 40 percent.
Last year, BabyOne achieved a turnover of 80 million euros. Its plans not
only include expansion in China but in Europe, too, where it is looking to set
up five new stores a year.
specialist shops for goods and equipment for infants and children
» to the franchisor