25 Filipino franchise brands eye global expansion
As most Filipino brands focus on scaling up their operations nationwide, around 20 to 25 brands have expressed interest in expanding globally, according to the Philippine Franchise Association (PFA).
These brands are a mix of various concepts such as leather repair services, direct selling firms, and restaurant chains.
This is in line with the PFA's push to increase the export of local franchise brands overseas, as the group aims to expand the volume of franchise stores by eight to 10 percent this year.
"We want to inculcate to PFA to our homegrown brands, not just local expansion of homegrown brands, but what we're trying actually is to hit the number of brands that are ready to scale up outside," said PFA Chairman of Past Presidents Sherill Ramos Quintana in a press conference on April 12 in Pasay City.
Currently, there are 20 existing PFA-member brands that have gradually established operations in countries like the United States. Overall, the PFA covers 1,800 to 2,000 brands.
"Our advantage is our disadvantage in terms of international [expansion] because our market is so lucrative. A lot of our brands decide to just expand in Cebu, Davao, which is right. But a big thing we're doing is mind-setting. We can expand more locally, which is good because we want to create more jobs, but maybe at the same time, already look at international. Don't wait until you have a 1,000 branches here before you look at international," said PFA Chairman Sam Christopher Lim.
Similar to how foreign brands enter the local market, Lim explained that "a field has to be established first" particularly by bigger Filipino brands like Jollibee, Potato Corner or Max's. When they have settled, the rest of the local brands can follow.
"That's why we have to continue investing in it," he added.
Quintana noted that they aim to optimize the potential of the Filipino diaspora market in helping local brands expand overseas, serving as the primary audience and promoters of the brands and making them "conduits of our culture."
The officials said most of the brands that Filipino brands are reaching are areas with the highest density of Filipinos like the US, Middle East, and Singapore.
Lim remarked that, eventually, brands will need to change their mindsets from catering solely to Filipino customers into serving the local populations of their target countries abroad.
Aside from those, the PFA is also endeavoring to join more international expos, trade missions, road shows, and showcases to promote Filipino brands and attract investors.
READ MORE: PFA sees 10% franchise store growth for 2024