Foreign franchise in PH to grow by 30% -- PFA
The Philippine Franchise Association (PFA) expressed confidence that the foreign population in the country’s franchise industry will increase by 30 percent, as it hosts the biggest and the longest-running franchise show in Asia.
“We expect that number to increase, not because the homegrown (population) is shrinking, it's because the pie is a lot bigger,” said PFA President Chris Lim in an interview at the opening day of this year’s Franchise Asia Philippines (FAPHL) at SMX Convention Center on Friday, Oct 27.
In his speech during the formal opening ceremony, Trade Secretary Alfredo E. Pascual also mentioned that 90 percent of the franchise businesses in the country are homegrown.
With over 1,000 brands participating in the three-day event, Lim said 20 percent of the exhibitors are international.
He also highlighted the importance of the event to attract international franchising, with delegates from over 35 countries this year.
“We’re the ‘Franchise Hub of Asia’. Everyone wants to come into the Philippines because we're English speaking, we’re a big market, we’re a gateway to Asia,” he said.
“We want them to explore the Philippines. Come in here, setup so that they can then expand in Asia,” Lim added.
He said international brands from Korea, Thailand, Singapore and Taiwan are some which expressed the most interest in expanding in the Philippines.
Most of these brands are typically from the food and services sectors, according to Lim.
Further, Lim said that the country’s big market majorly drives the interest of international franchisers.
“They see our market – we're a market of 100 million people, we’re English speaking. And at the same time, we're very young, an average age of about 24 years old,” he said, emphasizing that these brands are aware of the infinite customers in the country.
In terms of challenges in entering the Philippine market, Lim cited that one of the challenges for foreign brands is “looking for the right local partner.”
“That's why we do events like this so they can find the right master franchise partner,” he said.
Additionally, Lim said that foreign brands also have difficulty in adapting their products and services in the country, adding that it’s “something that their partners locally can help them with.”