CEBU, Philippines - Convenience stores and gasoline business are the most contested sectors in franchising today, an industry official said.
Rudolf Kotik, founder of RK Franchise Consultancy, said a growing number of convenience shops are strongly competing in the market.
"[We have] 7-Eleven, Ministop, FamilyMart and Gaisano Mart -- these are latest trends channeled by demand and supply," Kotik told reporters yesterday.
The demand for convenience shops have risen along with the growth of the business process outsourcing industry and increased domestic consumption.
On the other hand, two factors are fueling the business of gasoline stations -- but the dropping oil prices is not one of them.
The rising demand and the heating competition among petroleum firms are the reasons for its booming prospects, Kotik explained. He said: "New players are coming in. They want their share of the pie."
The food sector, he said, has constantly been expected to gain robust growth because of growing demand from consumers. Health and wellness franchises are also on the strong growth path.
But there's not much good news for the fashion retail which could be in the "losing trend" right now because of the presence of global brands and cheap import products, he said.
"When it comes to fashion, there's so much imports and choices in the market," he added.
Expo
Meanwhile, the Filipino International Franchise Association with RKFC will gather franchises and potential entrepreneurs on March 6-8 for the 16th Cebu Franchise Expo in SM City Cebu.
Around 80 franchise owners from various industries will look for potential franchisees in Visayas and Mindanano.
The franchise consultant said majority of the exhibitors are local enterprises and only four are international brands.
One main focus of the expo this year, he said, is to introduce rising business trends and franchise concepts for aspiring entrepreneurs.
Retirees, overseas Filipino workers and young professionals are the ones expected to be the potential franchisees. (FREEMAN)