Clothing retailers urged to expand franchise business abroad

MANILA, Philippines - Filipino clothing retailers are encouraged to develop a “real branding program” to expand their franchise business abroad as more foreign brands invade the local market.

“They’ve got to know what is their market, what do they stand for, they cannot sell a garment or fashion for all ages. Obviously, teaching them franchising because that’s the best entry strategy,” said Samie Lim, chairman emeritus of the Philippine Franchise Association (PFA).

Lim said better packaging can also boost the international marketability of local products.

He noted that of about 1,400 franchises in the country, only about 20 brands went global.

“As a matter of fact, we are now the leader in terms of number of franchise brands, but we are not leader yet in export,” he said. “The Philippines has all the ingredients for the franchise to establish itself.”

Lim identified brands like Bench, Kamiseta, Penshoppe and Plains and Prints among the country’s franchise export winners.

He urged franchisors to set their sights on ASEAN countries especially as the region gears up for next year’s economic integration.

“I think, we should focus more on the ASEAN because it is the easiest market to crack and an immediate market,” he said.

Lim believed that the Philippines is more prepared for the economic integration than other countries like Cambodia, Laos, Myanmar and Vietnam.

“But I’m sorry to say we are not as ready as Singapore, Malaysia, Thailand and Indonesia. They get all kinds of government support for SMEs (small and medium enterprises) and the retailing ranging from intensive training to support to develop their franchise programs, to get in them to participate to international trade shows,” he said.