Entrepreneurs urged to go global through franchising

CEBU, Philippines - Filipino entrepreneurs are urged to grab the opportunity of franchising offered by international companies to enter the promising market in the Philippines.

Philippine Retailers Association (PRA) chairman emeritus Samie Lim said that health food chains like the world’s largest organic burger franchise from Washington, which now has 40 branches in the US, Kuwait, and Bahrain, is now active to open up the business for franchisers.

The healthy-revolution choice of consumers now has paved the way for the company to grow faster than expected, Lim said, adding that Filipino franchisers could take advantage of this emerging trend of offering health-related food and products.

In a report released by PhilExport, Lim, who is considered as the “Father of Philippine Franchising,” also revealed another global trend which is up for grabs by the Filipino franchisers: the technology-based retail.

He mentioned for instance restaurants, stores, and supermarkets, or a food store where cooking is done and food served by a robot, and a fully-automated food service.

In venturing into this business, Lim urged franchisers to make the Philippines a true franchising hub of Asia through also exporting more Filipino franchised brands.    

“Make your products and brand look and feel as international as they can be, but carry our flag be a source of pride for our nation—a small way to give back to the people and country that helped you build and nurture your brand,” he advised.

Earlier, PRA-Cebu president Jun Yap said that Cebu will join with different business organizations and their mother organization PRA-National in reinforcing opportunities for retail businesses to expand regionally and take advantage of the opportunities in franchising in the retail sector.

According to Yap, to start off with this bid, PRA-Cebu will be joining a trade mission to be hosted by the PRA-National to explore Turkey this year.

“We would like to know the retail environment outside the Philippines,” said Yap, expressing confidence that Filipino retailers have great opportunities to expand retail businesses outside of the country.

Significantly, he said that while retail sector in Cebu or in the Philippines in general is performing very well, despite the stiffer competition, retail players are also preparing to grab the opportunities in handling exclusive franchise offers for international brands to enter the Philippines.

“This is one avenue that retailers can expand their businesses. A lot of international brands are coming in. This is a good opportunity for us,” said Yap.

Recently, the Philippine Trade and Investment Center (PTIC) urged Filipino retailers, franchisers and exporters to consider Asia, or in particular Indonesia, as potential lucrative market for retail goods.

PTIC commercial attache Alma Argayoso said that following the Penshoppe opening of stores in Jakarta, the leading lifestyle retailer in Indonesia, PT Mitro Adiperkasa (MAP) expressed interest to possibly export more products from the Philippines.

The MAP group is the company behind the success of famous lifestyle brands in Indonesia such as Sogo, Seibu, Debenhams, Zara, Marks and Spencer.

Yap, on the other hand, believes that retailers have a lot of options in terms of expansion, either to strengthen their brands locally or regionally, or to take advantage of the Philippine’s good retail market in getting exclusive franchise deals with international brands.

Cebu, for instance, is continually attracting more international brands, even signature brands, to take advantage of the growing sophisticated market and increased purchasing power of Cebuanos and consumers in the Southern Philippines. /JMD (FREEMAN)