CEBU, Philippines - While franchising is already widely accepted in the Philippines as the fastest and easiest way to expand market reach, a franchising expert said most of the other ASEAN member countries are still not keen on embracing the scheme.
Franchising consultant Rudolf Kotik said that most countries in the ASEAN bloc are not convinced yet of the power of “franchising” as a way to expand easily.
“The intra-ASEAN franchising may take off in the next five years,” said Kotik, although today is the time for Filipinos to start “spreading seeds” within the ASEAN bloc.
Except for Vietnam and Cambodia, other ASEAN countries are not into franchising yet. “What they are doing now instead, is guarding their own market.”
In the ASEAN, the Philippines is the leading country in terms of franchising maturity.
“But, Vietnam and Cambodia are catching up” he further warned.
Given this, Philippine companies, which are ahead of the franchising curb may be able to educate these countries in adapting franchising platforms.
Because of this, Filipino brands are seen to penetrate first in other ASEAN countries, rather than “them” coming in to the Philippines and expand through franchise.
Kotik, on the other hand, encouraged Filipino brands to start exploring the ASEAN countries, and introduce franchise strategy, as other ASEAN nations are still very new to franchising, but not expecting fast market acceptance.
Besides, he said “everybody in the ASEAN is busy building their own brands in their own country.
Kotik maintains that that Filipino brands offered through franchise are still attractive to Middle Eastern countries.
The Philippines has about 1,300 franchisor companies. So far, the Philippines has the biggest roster of franchisors among ASEAN countries.
Restaurants, spa brands, and beauty salon names from the Philippines are now hot franchise opportunities, the Arabs are looking into, Kotik reiterated.
“Arab companies are extremely active in buying franchise brands from the Philippines, maybe because they have good working relationships with Filipinos in their countries, or they have closer Filipino connections,” said Kotik, who owns the 18-year-old RK Franchise Consultancy Inc. (FREEMAN)