The franchise has put Reunion Island commerce in tune with France, especially in city centers. The franchise model of standardized offers and stores has not only modernized retail by opening it to contemporary lifestyles, but it has influenced other network commerce models.
“Commerce is going through profound changes (e-commerce, multichannel, delivery method…) and at an accelerated pace. Doing business alone with total independence becomes very difficult for all sectors of activity, and even more so in an uncertain economic environment. Network commerce may appear to be THE solution for launching into entrepreneurship in complete security : pooling resources to save money, proven business concept, benefit from an image and notoriety, experience and know-how, and an offer that better reflects new trends in customer consumption…” Everything is summarized in this introduction to the first study on “Franchising and independent networks in commerce and commercial services in Reunion”, carried out in 2018 by the Economic Observatory of the CCI Réunion from the Chamber’s company file. She calls us that the first franchises, in large specialized retail, are not from yesterday. The revival of retail thanks to franchising, his, started about fifteen years ago. The health crisis has not deterred vocations. Since 2019, new concepts have continued to appear in the Reunion commercial landscape. To name just three : Miniso (Japanese design and decorative objects), Irrijardin (garden watering, swimming pool accessories), Monoprix (the famous French brand available in small areas)…But the major trends identified by the CCI study remain valid.
The number one person's equipment
In 20128, Reunion Island had 972 stores and points of sale and 242 network retail brands.. We can deduce, without risk of making a mistake, that the number of stores, today, must be around a thousand and that of the brands has exceeded 250. 60% of these points of sale are franchised, others in other forms of network : branches, cooperatives, concession, etc. Network commerce, where the franchise serves as a model, represents 30% of retail employment (6,140 employees in 2018). 63% of brands are national, 20% foreign and 17% local. In the typology of businesses, the person’s equipment takes first place, monitoring of hygiene-health-beauty and home equipment. The two main franchises in Reunion, on behalf of points of sale, are the German automobile technical inspection brand Dekra-Norisko and the French hygiene-beauty brand Adopt. Also note the distribution of network points of sale : it is balanced in city centers and outskirts.
Azize Amode, director of the Economic Observatory of the CCI Réunion
“The franchise puts Reunion at the same time as the national territory. The franchise has given new impetus to the Reunion retail trade. You no longer see commercial wastelands, of vacant premises on the island. This strong dynamic of the franchise, and network commerce in general, also responds to the development of commercial development. A dual strategy is at work with brands setting up both in city centers and in shopping centers on the outskirts. »
Aurélie Relet, Sequoia Pressing
“I was an agronomist and franchising is for me a professional reconversion. I wanted to undertake and, to approach a new profession without knowledge, I found the franchise model reassuring with its diplicable scheme. I chose Sequoia Pressing because the activity is not very present in Reunion, with an offer that often does not meet what many customers are looking for. Also because the eco-responsible aspect was important to me in what I wanted to do. Sequoia Pression, it’s ecological dry cleaning. For the durability of the garment, we offer dry cleaning, using a patented responsible technique. The contact went extremely well with the franchisor. We are his fifty-fifth store, the fourth outside France. We are opening a second Séquoia Pressing in Saint-Paul soon. »
of the CCI Meeting (To read on Declikeco.re).
