The Philippine Trade & Investment Centre (PTIC) presented franchise and halal opportunities at the recent Franchise Asia Philippines Discovery Day Sessions held at the SMX Convention Center, Manila. The seminar on International Expansion Opportunities offered a platform for entrepreneurs to get updates on franchising in Hong Kong, Indonesia, Malaysia, Singapore, and the United Arab Emirates.
For ASEAN, Glenn Peñaranda, PTIC Commercial Counsellor for Singapore and Malaysia and ASEAN Team Leader shared that the ASEAN Economic Community offers many opportunities. “ASEAN is a dynamic market with a population of 625 million and increasing urbanization, income levels, regional integration, and foreign direct investments.” Reasons that franchising has become a successful business model in the region, specifically on the food sector. “As incomes rise and lifestyles evolve, consumption for food grows and diversifies”.
During his presentation, Commercial Counsellor Peñaranda emphasized what is important for Indonesia, Malaysia and Singapore markets – food quality, safety and halal certification; scalability; quality, convenience, and customer service and pricing. Franchising in the food and beverage sector is booming but the services sector is under-tapped.
There is the increasing popularity of ASEAN as a tourist destination which heightens the need for new and diverse products and services. Mr. Peñaranda also cited that franchises can take advantage of the growing Halal industry given the vast market of 252 million Muslims in the region. Halal certification for the products and service offerings is very important.
“A franchise can’t succeed without a concept that connects with customers of a particular market. Extending operations internationally means careful planning, choosing the right partners and observing cultural and language traditions as well,” he said.
In the Philippines, franchising is a major contributor to the country’s economic performance with a growth rate of 25 percent. In 2014, local brands account for two thirds of the revenue generated by the industry while international brands account for the other one third. The Philippine government encourages franchising abroad as it brings Filipino products, craftsmanship and the distinct Filipino brand to the global market.
The Department of Trade and Industry through the PTIC offices in major markets worldwide can assist companies who plan to expand their footprint overseas in search of potential partners. The PTICs in ASEAN are calling on franchisors to visit selected capitals in the region and see for themselves the opportunities and challenges in these markets.
Glenn Peñaranda, PTIC Commercial Counsellor for Singapore and Malaysia and ASEAN Team Leader highlights franchises and halal prospects in ASEAN at the Franchise Asia Philippines Discovery Day Sessions
Commercial Counsellor Peñaranda flanked by (l-r) Elizabeth Pardo-Orbeta, Philippine Franchise Association Chairman and Sherill Quintana, Oryspa President