Middle East Firms Target Franchising of Filipino Brands
30 Jul 2018 - Companies from the Middle East are eyeing to bring Filipino brands to their continent, Philippine Franchise Association (PFA) Director Sam Christopher Lim revealed on the sidelines of the Franchise Asia Philippines (FAPHL) 2018 International Conference in Pasay City Wednesday.
Lim noted that aside from the large overseas Filipino market there, Philippine brands have generated much interest from consumers in the Middle East. “There’s a lot of Middle East companies that want to bring Filipino brands,” added Lim, who is also the FAPHL 2018 Chairman.
He mentioned that food businesses are the best way to break into new markets followed by retail and services. He noted that Filipino franchising brands are shifting their expansion plans from the United States to Middle East, as the legal framework for franchising in America is much stricter.
According to Lim, most of franchised Filipino brands in the US are company-owned. “Some prefer the US just because they have family there, but the market is very very big. The problem with the US is the legal framework for franchising is very complicated, highly regulated, and very complex regulation that’s why they enter through their company-owned store. But in the Middle East, they enter through franchise,” he said.
“At least in the the past five years, I’ve seen more brands enter the Middle East,” he added. PFA President Richard Sanz said noted that the industry eyes to double the number of Filipino brands expanding in the international market in the next two years. Currently, there are 50 Filipino franchising brands abroad.
FAPHL is Asia’s largest franchising conference with 700 franchising brands participating from 40 countries. Organizers expect up to 55,000 delegates and visitors for this year’s event.