Local franchises hold huge global potential
‘We want 50 market entries for our brands because every time you export a brand, you are exporting our brands and our values’
Daily Tribune‘We want 50 market entries for our brands because every time you export a brand, you are exporting our brands and our values’
The Philippine Franchise Association targets developing the country to become a formidable franchising haven in the world, pushing it to improve its position from 7th to 5th within five years.
In an interview at the sidelines of Franchise Asia Philippines 2023 over the weekend, PFA president Chris Lim said the World Franchise Council has even created a Manila declaration to reiterate the strength and power of franchising, not just as a job creator but a resilient business.
"Currently, the local franchise industry is 7th in the world. We want it to be the 5th in a few year's time. We have almost 2,000 brands that we are offering, one of the biggest in the world. There are 200,000 franchise outlets all over the Philippines. We represent 7.8 percent of the country's gross domestic product, which I believe is worth $28 billion," Lim said.
Currently, Jollibee Foods Corp. remains the biggest franchise brand in the Philippines, with over 1,500 branches worldwide as of September 2023.
But for the brands who have gone internationally, Lim said 20 to 25 brands are currently making waves in the international market, or about one to two percent of the total brands worldwide.
"For the next year, our vision is we want more Filipino brands. This is the springboard for our brands to go international. We want 50 market entries for our brands because every time you export a brand, you are exporting our brands and our values," he said.
He said when brands are going internationally, food is the first step, but they see services have the potential to thrive in the international arena.
Digitalization key
Meanwhile, Trade Secretary Alfredo Pascual, the keynote speaker of the Franchise Asia Philippines event, stressed the significance of digital transformation to advance the development of Philippine enterprises, emphasizing the vital role of the franchising sector as a tool to advance the country's economic growth.
"The Department of Trade and Industry and the Philippine Franchise Association share similar goals which are fostering collaboration, promoting best practices, and driving economic development through franchising. Since its establishment, the PFA has been at the forefront of empowering businesses to grow, fostering job creation, and making significant contributions to the overall development of our nation," he said.
During the discussion, the trade and industry chief outlined the various programs and initiatives undertaken by the DTI to foster a thriving and sustainable environment for enterprises through franchising.
He also highlighted that the Department's science, technology, and innovation-driven strategy is aimed at empowering micro, small, and medium enterprises and facilitating their integration into the global digital space.
Further, Pascual presented the efforts of the DTI to support the expansion of MSME operations through franchising, including boot camps, seminars, and business matchmaking events. He also added that the DTI regional offices collaborate with local government units and franchise associations, promoting franchising as a thriving business model.
Pascual also affirmed the agency's support for the franchising sector, citing active engagement in the promotion and regulation of the Philippine franchise sector.
He added the critical role of the Philippine Trade Investment Center, which spearheaded webinars, seminars, and trade exhibition programs to promote Filipino franchise brands in the international market.
Highlighting the franchising industry's role in advancing the nation's economic growth Secretary Pascual stressed, "Indeed, Franchising has been an effective tool, fueling business creation and job opportunities. It plays a pivotal role in the journey to cultivate a robust middle class and steer the Philippines towards the status of a middle-income economy"
FAPHL is Asia's biggest and longest-running franchise show organized by the PFA to promote franchising as a tool to create businesses and generate jobs in the Philippines and overseas.
