Social status

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Social Economy Development
Tertiary industry in China
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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.
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Outline

• 1. Introduction
• 2. Development of the Tertiary industry in China
• 3. Franchise chain operation in the Tertiary
  industry
• 4. Shopping Online
• 5.Discussion

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1. 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.

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1. Introduction

• Why the Tertiary industry is important in China?

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

• Primary industry

• Capital goods producing industry

• Secondary industry

• Consumption products producing industry

• Tertiary industry

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

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

• From Consumption Cities to Productive cities .

• Comparably completed service system in cities

• The percentage is comparably lower

• Self service .

• Regional disproportion.

• Small societies were organized by factories.

• The structure is in developing .

• Weakness of quality, technology and management.

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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
1980 21.6
1996 32.8
2000 39.0
2008 40.1
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
Resource Statistic data from National Bureau of
Statistics of China
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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
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2. Development of the Tertiary industry in China
2.3 Regional disproportion
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2. Development of the Tertiary industry in China
2.4 The structure is in developing.

• Finance, insurance, social security system is in
  developing.
• Science and technology, information, consulting
  service is in developing.

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3. Franchise chain operation in the Tertiary
industry
3.1 Introduction

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  (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.

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

• Tu Jia Shaobing (sesame seed cake ) was very
  popular in 2006 in Shanghai.
• Dozens of such snack-bars appeared in one night.

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3. Franchise chain operation in the 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.

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4. Shopping Online

• Have you shopped online with the internet?
• What are the advantages of shopping online?

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4. Shopping Online
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5.Discussion

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