AFFI: Proudly Pinoy, proudly global

MANILA, Philippines - The Filipino entrepreneur has indeed come a long way. Over a decade ago, the generally-accepted approach was to set up a foreign franchise in the country because the mindset was that foreign franchises, and foreign brands are sure winners. And it was — until a small group of enterprising small and medium-sized local entrepreneurs thought the biased tide can be reversed, and that consumers, while used to welcoming imported concepts, would eventually go back and desire the familiarity of homegrown products.

Today, Filipino franchisers have proven that not only can they stand up to their bigger foreign counterparts, but they too, have what it takes to invade their competitors’ foreign enclaves. 

“Back then, few people would speculate that these Filipino franchises would survive and even thrive. But the Pinoy franchiser persevered, driven by the belief in the natural ingenuity and industry of the Filipino,” says Richard V. Sanz, executive vice-president of the Association of Filipino Franchisers, Inc. (AFFI)

Sanz’s company, Food Asia Corp. which he heads as president and CEO, and which runs the franchise “Bibingkinitan!” and Tea Square, is currently negotiating to open its first offshore branch in Jakarta, Indonesia.

Mindful that targeting only the Filipino market would limit his chances of succeeding, Sanz emphasizes he is positioning his product in the mainstream market as well.

Such is also the approach of his peers in Fiorgelato/Fior Café, Goto King, Figaro, Lots’ A Pizza, Chicharrific, Plato Wraps, JM Peanut World, RBX Rice-in-a-Box, and Aquabest which are now branching out in Southeast Asia.

Potato Corner is a step ahead; it is already gaining ground in the US, not just among the Filipino community, but in the larger, more diverse mainstream market.

Most of the established Filipino franchises now setting their sights on the bigger global arena, have learned from experience that starting small requires one to be detail-oriented. Attention to detail is what is important if one aspires to expand outside of the Philippines. One cannot miss out on the basic due-diligence learning about the country where they plan to set up shop — its culture, laws and policies where their franchise will be established.

These awe-inspiring business homegrown models were highlighted in AFFI’s franchise show dubbed “The 9th Filipino Franchise Show 2010: Championing the Filipino MSME Franchise.”

With homegrown franchises proving to be more resilient than their foreign counterparts in these uncertain times, the push to enhance the scale of this year’s show has become imperative, says Sanz, a Young Market Masters Awardee (5th YMMA Awards) for entrepreneurial marketing whose homegrown business concept Bibingkinitan! has been cited as the Philippines’ fastest growing franchise and best in franchising support in the recent Entrepreneur Magazine’s 2010 Franchise Awards.

“This year’s show was the biggest and grandest all-Filipino franchise show. We featured the best and innovative franchises, mostly homegrown. It showcased the best of the Filipino’s creativity in franchising,” he pointed out.

The featured business models are expected to further stoke the desire of local franchisers to think of not only of expanding their business at home, but at a crucial point, take up the challenge of going global, AFFI board advisor and chairman emeritus Teresita L. Ngan Tian, president of Lots’ A Pizza, added.

AFFI is confident the Filipino franchisers’ chances of succeeding abroad are just as good as those from other countries because Philippine brands are competitive.

Going for a niche market is one way to do it, but covering the bases before venturing overseas is still a smart business sense. Being a stickler for details, along with skillfully combining a broader global outlook with the unique Filipino brand of service ups the chances of making a mark.