The franchising business is expected to grow by 20 percent this year and 30 percent in 2014, largely on food brands and retail concept stores, a top industry official said Monday.
“For 2013, we are looking at 20 percent growth in franchises and 30 percent for 2014,” Philippine Franchise Association chairman emeritus Samie Lim told reporters on the sidelines of a Forum in Makati City.
The projection compares with 10 percent to 20 percent annual growth posted at least in the last five years, said Lim, considered as the “Father of Philippine Franchising.”
There are 130,000 franchises under 1,300 homegrown and foreign brands operating in the Philippines.
Asked on the growth drivers for this year and the next, Lim said, “It’s always food first and then retail concept. They both have really strong growth.”
Business-minded Filipinos are now closely looking at tapping the services component of franchising—spa and wellness, marketing, and health care, Lim noted.
The growing services arm franchising can be attributed to the higher spending power of Filipinos.
“We have moved from consuming just goods to consuming services,” George Manzano, vice dean at University of Asia and the Pacific School of Economics, said in a separate interview with reporters.
Lim cited the phenomena of local and foreign franchise brands debuting in the Philippine market.
“We are seeing many franchises that have set up first stores and these brands will grow further,” he said, adding that at least 30 new foreign franchise brands have entered the Philippines so far this year.