After a year of economic difficulty, Philippine businesses are reported to be more optimistic about the future. According to Grant Thornton’s International Business Report, released by member-firm Punongbayan and Araullo in January this year, businesses gave an overall optimism rating of 68 percent, better than 2009’s 65 percent.
The same report noted that Philippine businesses were among the most optimistic in the world, placing sixth in the global optimism rankings.
Filipino franchise companies are among the more optimistic and the more robust sectors in the local landscape, the country credited with the most number of original franchise ideas—close to 700—in the world. [See six critical parts of a franchise agreement here]
Here are some of the sectors that top franchising consultants expect to grow significantly this year.
Food and Retail
The food and retail sectors still top the list of franchise companies that are seen to do well in 2010, but not so well as the service and beauty, health and wellness sectors.
Armando Bartolome, president of GMB Franchise Developers Inc., says the year will be challenging for the food sector because of the previous year’s calamities that devastated the agricultural sector. [See 10 steps to a franchise-ready business here]
Although the government has assured the public that there would be sufficient supply of food and raw materials, this is not an assurance that their prices won’t go up, says Bartolome. He adds operating a food business might also be costly this year because of expected increase in prices.
There is a silver lining though—several new brands have taken center stage, paving the way for upstarts to try and make their mark in the food scene. Filipino consumers are seen to increasingly favor health alternatives (think tea and yogurt), and Filipino food (the huge success of Mang Inasal is a very good example).
The retail sector, on the other hand, is expected to expand this year because of the increasing demand for convenience shopping within business centers and residential villages. More and more consumers now go to convenience stores to pay their bills, buy medicines and groceries, get quick meals and buy mobile phone credit. [See eight requirements to franchise a business here]
Page 2: At your service