Through an affiliate called Franchise Ventures Corp., which was created to facilitate the use and license of the identity and brand marks, Islands Souvenirs is now in 16 different provinces and cities throughout the country as well as in Okinawa, Singapore and San Francisco, California but plans to further expand its reach by offering franchises.
Islands Souvenirs is the first company to be authorized by the Singapore Tourism Board to carry souvenirs of another nation.
Its locations include Manila, Camiguin, Cagayan de Oro, Davao, Bohol, Boracay, Iloilo, Bacolod, Cebu, Bicol, Clark and Subic. The company is now looking at expanding to Baguio, Vigan, Laoag, Siargao, among others.
According to Islands Souvenirs vice president for marketing Lyndon Angan, the franchise store can either be the cart-type or boutique (permanent space), with the franchise fee ranging from as low as P50,000 to P500,000 depending on the area, coverage, and type of store.
It is estimated that the initial per unit investment of a 40-square meter boutique will average P3.2 million while a cart would amount to P750,000.
According to Angan, between 60 to 80 percent of its customer are domestic travelers. Sales this summer grew by as much as 40 percent compared to the same period last year.
Islands Souvenirs was established in 1992 by Jay Aldeguer, now the firm’s president and chief executive officer, whose family at that time was already in the garments business. The company started with selling souvenir shirts at the former White Golf department store in Cebu until it opened its first store in 1993 at the Flormont Hotel in Mandaue.
It then expanded its network nationwide, mostly in major tourist destinations. Islands Souvenirs has also entered into several corporate partnerships in the production and sale of license products with companies like ABS-CBN, Jollibee, and recently, Cebu Pacific.
Cebu Pacific customer services manager Vic Palpal-latoc said that via the partnership, the airline’s passengers got the chance to win items from Islands Souvenir in May and June (the promo was extended). Cebu Pacific ground and flight crew will also be donning outfits co-branded and designed by Islands Souvenirs for the weekend flights.