Prepare for influx of foreign brands, local firms urged


Local franchising firms must brace themselves for the influx of foreign franchises once the Asean Economic Community is put in place in 2015.

Samie Lim, chair emeritus of the Philippine Franchising Association (PFA), urged local franchises to start building their brands and their systems to be more competitive.

At the same time, Lim also sought government support in the form of financial aid for local franchises’ participation in various meetings and expos abroad, particularly in Europe and the United States; site search and evaluation assistance; and provision of support in setting up business matching activities for potential franchises abroad.

By 2015, the Asean will establish an “Asean Economic Community,” defined as a single market and distribution base, highly competitive economic region with equitable economic development, and a region fully integrated into the global economy.

The establishment of such a community will mean greater openness of the local market to foreign brands.

Although there are a number of brands that have gone global, Lim said a lot of local companies into franchising were still not ready for the impact of the Asean economic integration.

These franchising firms are strong in the Philippines but not worldwide, and not even in Asia.

In the world market, we are still nothing, Lim added.

Some of the local franchise brands that have expanded abroad include Jollibee, Max’s Restaurant, Goldilocks, Potato Corner, Crystal Clear, Bench and Golden ABC.

Local franchises, however, have an advantage as a survey conducted by the US-based International Franchise Association showed that the Philippines was one of the best destinations for overseas expansion for franchising firms.

The top destination is Chile; followed by the US; Japan and China (tied scores); and Canada, Australia, Mexico and the Philippines.

These countries were measured based on expected 2013 gross domestic product growth; market size; legal concerns for international brands; ease of market entry; ease of starting a new business; and political and economic stability.

These same conditions present opportunities that local companies must seize, Lim stressed.

To help local firms, the PFA has organized the Franchise Asia Philippines 2013, which will feature resource speakers who will share their success stories and best practices.

Foreign companies are also visiting the Philippines this month during the franchise expo to look at opportunities for expansion in the country.

Lim said that franchising was a boon to global economy as it promotes entrepreneurship and generates millions of jobs. Amy R. Remo

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  • koolkid_inthehouse

    Improved your corned Beef, put more beef in it. the same thing with sausages, to be more competitive. Focus on high quality.

  • Tommy

    At the same time, it’s a good chance for our local companies to start expanding abroad, and targeting other ASEAN markets.

  • Philipmon

    Filipino customers should be made aware of the repercussion of choosing foreign manufactured products from local manufactured products. Media is in the position to educate the Filipino consumers that choosing foreign manufactured products means jobs shipped abroad while choosing local manufactured products means retained or new jobs in our country for our countrymen.

    Foreign companies to set-up shop is good under the following

    1. Foreign investors should set-up a domestic corporation in
    the Philippines.

    2. The employees of these domestic corporations should have company
    stocks as part of their remuneration package.

    3. Senior Management of these domestic corporations should
    be Filipino nationals. If initially the senior management positions are manned
    by foreigners, succession plans should be part of the corporations by-laws
    requiring turnover of the senior management positions to Filipino nationals.
    This is consistent with the Philippine constitution.

    4. Major suppliers and service providers of the corporations are local manufacturers and businesses.

    5. Require the corporation to go public upon reaching a pre-specified regulatory requirement in order that more Filipinos could partake in the success of the business and spread the wealth to our countrymen.

    • koolkid_inthehouse

      if foreign exports are high quality and trustworthy with competitive price, I’ll go for the imported. the same thing with local products, I prefer because its fresher. but then again on canned goods, imported from EU, US and Australia are far more superior than the local brand.

  • Garo Ungaro

    Its a good thing to be expose to foreign products…as we are a consumer market as we never develop much on local products liking…The mentally creates gap and more towards foreign product branding, the success of local products deem very slim. Since, pinoy mentality is more on foreign things…?

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