Open economy to benefit Phl’s franchising industry

CEBU, Philippines - The projected opportunities of an integrated economy will far outweigh the challenges that it will bring to the country’s local franchising industry, an official said.

Bing Sibal-Limjoco, vice chairman of the Philippine Franchise Association, said local franchise businesses have been preparing for the expected entry of foreign competitors into the Philippine market next year. This, as Asean economies would be integrated into one single market base by end of 2015.

In an interview, the PFA official explained it is only right that Filipino homegrown companies must raise global competitiveness “to continue to grow” not only locally but also outside the country.

Limjoco, also the CEO of Francorp Philippines, particularly emphasized the food sector as the most vulnerable to a tougher competition among Asean brands, but cited some local names that have been persistent to enter into the global market.

These include Bo’s Coffee Club, Tables, Dimsum Break, and Golden Cowrie restaurant, among other local brands.

She says wide advertisement and the “discipline” are two great factors that help these businesses establish a good brand and international standards.

“These companies have discipline. Others would normally have franchise programs but don’t have the discipline. They also have systems wide of advertisement. They believe that ‘I must advertise my brand’,” added Limjoco, who was recently in Cebu for a franchise event as part of the Mandaue Business Month.

On the other hand, Samie Lim, the association’s chairman emeritus already said the country has become Asia’s attractive destination for franchising because of its young and huge population, strong domestic consumption and its growing economy.

According to Limjoco, foreign entrepreneurs are now looking at the Philippines as an incubation place for their franchise businesses to hike revenues and eventually expand throughout the Asean region.

Last year, the PFA expected the franchising industry – especially on food brands and retail stores – to grow by 20 percent and 30 percent this year. The food and retail sectors have always been the growth drivers of the franchising business, it said.

“We actually have brands that are really good,” Limjoco said. More franchise concepts are seen to exist in the future as international brands would partner with local entrepreneurs. (FREEMAN)