PH Set to Benefit from Intra-Asean-Franchising
MANILA: It would take another half a decade for Philippine-based franchisor companies to successfully penetrate the ASEAN region’s economies even as the bloc provides opportunities for Filipino franchisors to grow, according to franchise consultant Rudolf
“The intra-ASEAN franchising will take place, but maybe in five years time,” Kotik, founder of RK Franchise Consultancy was quoted as saying by Sun Star.
Although franchising in ASEAN is growing, Kotik reportedly said member countries right now are more concerned about strengthening their own brands in their country.
“For now, they are more occupied in building their own brands and satisfying their own local market,” added Kotik, basing his observation to the franchising summits he attended this year in Indonesia and Malaysia, in a bid to help Filipino brands expand overseas.
“We are still on a wait-and-see stance as to the impact of the integration to the franchising industry. However, right now, we see strong interest of franchising in the Middle East rather than in ASEAN,” he was quoted as saying.
Kotik reportedly explained this could be because of the strong presence and linkage of Filipino communities in Middle East countries.
The Philippines so far is the most successful country in ASEAN, as far as franchising is concerned, with 1,300 established franchisor companies, whose growth in franchise business are spread across the country, the report said.
The industry is currently dominated by homegrown brands that comprise more than half of the franchisors in the country. The Association of Filipino Franchisers Inc. reports that its members have 19, 312 stores that employ 135, 184 people, Sun Star reported.
Kotik projects the country’s franchising industry to close 2015 with a 20 percent growth and expects the growth momentum to continue in 2016, said the news portal.