Consumption-based lifestyle boosts growth of franchising
MANILA, Philippines - People may attribute the growth of the franchise sector to the rise in the remittances of overseas Filipino workers (OFWs) and the booming business process outsourcing (BPO) sector, but it’s the country’s consumer-driven economy that has significantly contributed to this growth.
It has created a market bias for franchised brands that offer a high level of comfort, convenience, efficiency and value for money, generating demand, influencing consumer behavior, and introducing a lifestyle that reflects a globalizing cosmopolitan environment.
“Take the now prevalent positive attitude of the staff of a franchised business,” said chairman emeritus Samie Lim of the Philippine Franchise Association (PFA). “They lead the entire industry in being customer-oriented while their products and services continue to evolve and revolve around the needs of the consumer. This is happening because of the quality standardization that characterizes the members of the PFA or the franchise sector — from raw material sourcing to the production line and all the way to the point of sale — all religiously adhering to the highest possible global benchmark of product and service excellence that defines each brand.”
No wonder PFA chairman and Max’s Restaurant president Robert S. Trota is eyeing a 20 to 30 percent sales growth of franchised businesses for 2010, or to P157 billion from P121 billion in 2009.
“Yet, last year’s figure included a 20-percent rise despite the global financial crunch and helped the franchise sector contribute five percent to the GDP (gross domestic product) growth,” Trota said.
PFA vice chair Bing S. Limjoco said this year’s growth could come mostly from OFWs wanting to start up businesses, and the micro, small and medium enterprises seeking to diversify and expand their operations.
Last year, OFWs poured in a record high of $17.1 billion in remittances even as exports rebounded, BPO employment rose, and foreign visitor arrivals continued to increase.
These positive developments made PFA president Yvette Pardo-Orbeta forecast a similar rise in participation in the forthcoming Franchise Expo, an integral component of the 18th Philippine International Franchise Conference and Expo (PIFCE) dubbed “Franchise 2010.”
“We expect this year’s Franchise Expo to have a record 336 booths and 30,000 visitors,” Orbeta pointed out.
Slated at the SMX Convention Center on July 16 to 18, the expo includes colorful exhibits of local and international franchises, empowering franchise seminars, exciting business presentations, and vigorous industry networking and marketing activities.
Comprising the exhibits are the Incubation and Emerging Concepts Area, the Young Entrepreneurs and Women Entrepreneurs Sections, the International Pavilion, the Franchise Pavilion, and all types of allied and support services, making Franchise Expo 2010 a complete one-stop shop for business development and joint business ventures.
To know more about the event, visit www.franchise2010.com and register on-line for special admission rates. Other expo details can be obtained from the PFA Secretariat at 687-0365 to 67, 0917-8320732, or e-mail pfa@pfa.org.ph; or through the exhibit management team Global Link MP Events at 750-8588 or e-mail franchise@globallinkmp.com.
