4 emerging franchising trends in Asia
Top franchising trends in Asia right now!
Jun 02, 2011 13:00 pm
Food and beverage businesses continue to dominate the franchising industry here in the country, with brands like Goldilocks, Jollibee, Greenwich, and Mang Inasal keeping their popularity among franchisees. [Find out how local brands have re-branded to capture a bigger market here]
In neighboring countries, however, it is an entirely different story.
“The trends of franchising actually vary from country to country. A huge factor that determines the trend is the economic status of the country as more developed countries are more into the services sector while developing countries are more into the food and beverage,” said Albert Kong, chairman of the International Development Franchising and Licensing Association of Singapore. [Read more about a Filipino Franchise Show here]
Kong has been in the franchising industry for about 20 years already and has become a permanent fixture of the franchising industry in Singapore and even throughout Southeast Asia. Kong has helped several Asian brands expand via franchising.
Kong also lectures on franchising at Ngee Ann Polytechnic in Singapore. [Read more about the Franchising and Licensing Asia 2010 here]
Kong also shared with Entrepreneur.com.ph four of the emerging franchising trends in the key markets of the region:
China [Read about a local franchise brand that is set to enter the Chinese market here]
1. Automobile-related services
2. Home renovation and interior design
“China's boom will continue and the surge in car purchases and real estate, especially high-rise living, make it an ideal place to put up a franchise on automobile-related services and those that involve house renovations,” Kong said.
Cambodia [See six traits foreign brands look for in local franchisees here]
3. Western brands in the food and beverage sector
“Cambodia is a relatively new market that has recently opened up. There is still a strong market demand for Western brands in the food sector,” Kong said.
4. Medical services [Read about the opportunties in the wellness sector in the country here]
“There is a growing population of middle class and affluent people in India who wants to have better options with their healthcare. Most of them do not want to be in the government-run hospitals and would want to be in a more exclusive healthcare facility,” Kong said.
In other countries, like the Philippines, Singapore, Malaysia, and Indonesia, home grown brands in the food and beverage industries will continue to be popular in the next few years.
“There is no rocket science behind knowing what franchise brand will hit or what will not. It’s just a matter of knowing what the people need or will need and what services are present that answer to those needs,” Kong said.
Kong will be one of the speakers at the Franchising and Licensing Asia 2010 at the Marina Bay Sands, Singapore on October 21 to 23.
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