Franchising sector poised for 20% growth in ’13
The local franchising industry is poised to register sustained growths of 20 percent this year and 30 percent in 2014, with the Philippines emerging as one of the best destinations for overseas expansion for franchising firms.
Samie Lim, chair emeritus of the Philippine Franchising Association, explained that this growth was based on the number of “franchisees” which is expected to further increase from the current count of 130,000. There are 1,300 franchisors in the country to date.
According to Lim, the expected increase in franchisees can be attributed to the group’s active participation in various trade missions and expos being held in Europe, US and Asia.
PFA, he added, is making it known to more foreign companies that franchising their brands to the Philippines, where there are nearly 500 international brands, can be a highly successful venture.
Lim disclosed that about 50 foreign brands were eyeing potential opportunities in the Philippines as these companies are expected to attend the Franchise Asia Philippines 2013 this week.
These companies may be looking for prospective “master franchisors” in the Philippines.
He likewise revealed that there were food franchises from Singapore that may start looking into the Philippines as an alternative market.
According to Lim, about 550 new restaurants opened in Singapore last year, but 470 of these had to close due to various factors such as high rental and expensive labor force.
Meanwhile, Lim, in his speech during the Symposium-Workshop on International Franchising for SMEs, stressed that small and medium enterprises can gain a competitive advantage if they expand in the global market via franchising.
“Franchising is the fastest way to make your brand truly global,” he stressed.
To be successful in their international ventures, Lim urged SMEs to conduct exhaustive research; budget conservatively; invest in brand-building and find the right partner. Amy R. Remo
