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CPPCC member Yu Ruifen: Optimize the financing environment for food chain enterprises


Most of the food chain enterprises are the leading brands in the industrial chain, which play an important role in coordinating the supply chain, driving the production chain, optimizing the supply side, promoting new growth, solving scattered employment and improving service quality. In recent years, with the fierce competition of online and offline (300959) low price oriented, the fair competition environment on which the industry depends has been shaken.

During the National Two Sessions this year, Yu Ruifen, a member of the National Committee of the Chinese People's Political Consultative Conference and president of Shanghai Laiyifen (603777) Co., Ltd., brought the "Proposal on Promoting the Healthy and Orderly Development of the Food Chain Industry."

2023 is the "consumption boost year", national consumption promotion activities, high-quality implementation of policies, effectively stimulate market vitality. China's total social zero for the whole year exceeded 47.1 trillion yuan, up 7.2 percent year-on-year. Among them, offline physical commercial retail (including catering) contributed more than 31 trillion yuan, up 6.5 percent year-on-year, which is still the main scene of terminal consumption and the main driving force of economic growth.

The food chain business industry mainly sells snacks, cooked food, cakes and other specialty stores. The operating area is generally about 15-200 square meters, and most of the operators are individual industrial and commercial households that are mainly franchised. According to statistics, by the end of last year, the number of stores of food chain enterprises in China exceeded 100000, and the number of new food chain stores in that year exceeded 10000.

However, the market disorder shop, low-price dumping and other issues are still serious.

"Formal brand stores have a strict site selection process to maximize the protection of the operator's income." Yu Ruifen pointed out that, however, after some brands recruited franchisees, they blindly followed the trend of brands and set up shop, which often caused the franchisees to find it difficult to maintain operating costs due to their sales performance, and large-scale store closure caused a large number of food waste problems such as temporary commodities and inventory scrapping. Such problems are also a lose-lose situation for regular chain brand enterprises.

In addition, some food chain enterprises take the way of low-price dumping to seize market share, and even violate the "provisions on Administrative penalties for Price violations" to carry out price monopoly and price alliance to crack down on competitors.

"Low-price competition often also increases the risk of food safety. Although it is difficult to obtain evidence, such problems should arouse the attention of price regulators." She said.

On the other hand, due to the confusion of franchise management of some brands, there are often cases where stored-value cards cannot be consumed or withdrawn, franchisee franchise fees and deposits are embezzled by the brand. Such problems have a very negative impact on the standardized franchise model.

In order to promote the healthy and orderly development of food chain enterprises, Yu Ruifen suggested.

First, guide the scientific layout of the shop. It is suggested to learn from Shanghai's "Several Opinions on Promoting the Healthy Development of Shanghai's Pharmaceutical Retail Industry" to give full play to the advantages of "Shanghai Pharmacy" APP pharmacy information collection, make use of the "electronic map" of pharmacies, guide new pharmacies to optimize site selection, guide pharmaceutical retail enterprises to actively connect with regional medical and health and commercial-related plans, and avoid vicious competition. Intervention from the source to strengthen guidance, to avoid the industry caused by disorderly investment and waste of social resources.

Second, encourage "entrepreneurship". At the government level, we should strengthen the propaganda of "entrepreneurship" and cultivate the ideological understanding of enterprises in patriotism, innovation, integrity, social responsibility and international vision. At the same time, food chain enterprises are encouraged to extend their stores to the community and sink to villages and towns. On the one hand, in commercial activities, we should attach importance to improving the utilization rate of social resources and the comprehensive efficiency of the industrial chain; on the other hand, in the integrated development of urban and rural areas, we should give full play to the advantages of the supply chain and link the planting and breeding bases of agricultural and sideline products at the source. to provide consumers with more abundant and high-quality goods and services.

Third, regulate the franchise market. In accordance with the requirements of "2 stores for 1 year" in the "Regulations on the Administration of Commercial Franchising", we will severely crack down on malicious competition methods such as illegal opening of franchises, illegal collection of franchise fees, large-scale flipping, and use of advertisements to implement deception and misleading behaviors. We will speed up the study and promulgation of the "Margin System for Affiliate Fees and Stored Value Cards" to prevent franchisees from being unable to recover the prepaid affiliation fees due to poor management of enterprises and absconding of funds, and to avoid the situation that funds in consumers' stored value cards cannot be used and withdrawn.

Fourth, exposure of typical cases of price violations. In response to the concentrated price violations in the food chain business industry, the first is to strictly enforce the anti-monopoly law, regulate the investment and mergers and acquisitions of head companies, and prevent monopoly behaviors from infringing on the rights and interests of suppliers and consumers. The second is to file cases with price illegal clues, and standardize the fair competition business environment of the industry by exposing typical illegal cases.

Yu Ruifen also stressed the importance of optimizing the financing environment. "It is suggested that we should further introduce financial policies for food chain enterprises with high market reputation, improve the financing ability and level of enterprises, and encourage excellent food chain enterprises to finance, lend and go public." She said.

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