Economic integration: Taking foreign partners may benefit local brands

CEBU, Philippines - While food businesses in the franchising sector are seen to be the most affected by the economic integration, a business leader said having partnerships with foreign brands can also be beneficial.

Bing Sibal-Limjoco, vice chairman of the Philippine Franchise Association, said the regional integration of Asean economies next year would allow foreign companies to easily engage in partnerships with local brands here in the Philippines.

"We expect so many other foreign brands coming in," she said in a previous interview. "But you know, I take pride in Cebu brands kasi they are creative and they can really compete."

On the other hand, Limjoco said Philippine brands can also take the opportunity to partner with foreign businesses particularly in the Asean region.

This move would expose them to bigger business opportunities that the global market can offer, she added.

The PFA said the food sector accounts 43 percent of the local franchising industry; retail covers 28 percent; and 23 percent for services.

The businesswoman said global expansion would soon become the trend in the franchising industry as the impending economic cooperation would mean free flow of goods and services.

"Alam niyo, lumalaki ang Asean; the growth is in the Asean. They (Western brands) are looking at us. So, businesses should grab this opportunity to grow," she said.

Growth

The potential high return of investment has remained to be the growth of the industry, she pointed out, saying the success rate of this business stands at 90 percent.

Limjoco also cited the Philippines is eyeing to be the franchising development center in the Asean region.