Franchising in Russia: new economic reality
https://doi.org/10.38050/01300105202137
Abstract
This article examines the changes that have occurred in the franchise market in Russia in connection with the coronavirus pandemic and the economic crisis caused by it. The methodological basis of the work include scientific publications about COVID-19 impact on Russian business and the author's research based on a survey of Russian franchisors on changes in the franchise model in the context of the crisis, conducted at the end of 2020. The deterioration of macroeconomic indicators and a sharp decline in real incomes of the population affected the behavior of consumers, radically changing their consumer habits and consumption model. The article identifies four types of consumer behavior, the formation of which began before the pandemic and strengthened during it. In addition, the trends of the following changes are identified, which will further determine the strategies of franchising companies. The main indicators that characterize the transformation of demand for franchises during the pandemic are analyzed: the dynamics of the number of partners in franchise networks, changes in investment preferences and opportunities of potential franchisees; as well as anti-crisis measures of franchisors to support their partners. Due to the impact of the crisis, franchised business was mixed. The author proposed a classification of the franchises in the new economic reality with the aim of systematizing the participants franchising market trends and its future development. The results of the work can be used for further research on the transformation of the franchise model, the development of new franchise proposals and the decision to invest in the franchise.
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Review
For citations:
Shakhova M.S. Franchising in Russia: new economic reality. Moscow University Economics Bulletin. 2021;(3):130-157. (In Russ.) https://doi.org/10.38050/01300105202137
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