By Bernie Cahiles-Magkilat
At least 100 Filipino franchises, mostly in the food sector, are expected to go global in three years from the current 30 as more local concepts have become viable for expansion particularly in ASEAN.
Credit: (http://www.pfa.org.ph)
Richard Sanz, president of the Philippine Franchise Association (PFA), announced this goal at the Franchise Asia Philippines 2019 noting that Filipino brands going abroad is part of a country branding.
“If we want to make Philippines an economic success, we have to unleash an army of entrepreneurs to the world,” said Sanz.
Trade and Industry Secretary Ramon M. Lopez said the 100 target set by PFA is highly feasible.
“That’s easy,” Lopez said noting that PFA is aggressively representing Filipino franchises overseas through expos and are busy joining roadshows.
At present, the Philippines ranked 7th among countries globally with the highest number of franchise brands. There are currently 1,800 Filipino brands.
For its part, DTI through its commercial attaches is helping local franchises promote their concepts in the mainstream market and not just to the Filipinos overseas.
Lopez said that government fund is not needed by Filipino franchises because they means to carry on their businesses.
“They have the money,” he stressed.
Sanz noted that 80 to 90 percent of the global Pinoy franchises are into food but they are pushing these franchises to tap the mainstream market because that will make their operations more viable.
The next tiered franchises are to include Orayspa and Pure Nectar. While ASEAN is the natural market for Filipino firms to expand, Sanz said they are also promoting in non-traditional markets.
“Franchising is a proven formula, it is template that could shorten the learning curb,” he adds.
After 25 years, he said, franchising has become a powerful tool for economic growth.