Francorp - The Franchising Leader in the Philippines
Francorp - The Franchising Leader in the Philippines

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Business Readiness for the ASEAN Economic Community

Article by Sam Christopher T. Lim

With the ASEAN Economic Community (AEC) integration coming soon in 2015, many business owners are now looking at how to prepare for the arrival of more foreign competitors into the Philippine market. Franchising can help you prepare by solving 3 critical issues:

  1. BUILD YOUR BRANDWith hundreds of foreign brands entering the market, branding and marketing are no longer just the logo and tagline you have. Branding is what you say and do at every touch point that your customer interacts with you. Whether it’s your advertising, how your store looks, how your staff speaks, or even the emails and newsletters you send, every element needs to be aligned to your brand.
    Franchising can help by re-evaluating and documenting your key brand elements to ensure that the total experience is properly replicated by franchisees. In addition, having multiple franchises allows your brand to gain higher awareness and protect you from the new brands that are coming in.
  2. UPGRADE AND MAKE YOUR SYSTEMS AS EFFICIENT AS YOU CANWorld class competitors bring world class systems. Hence, you need to step up your operations to be competitive with your competitors. Local franchise brands such as Magic Melt from Cebu have invested ISO-certified facilities and HACCP certifications to ensure that their products and processes can compete with the best in the market. Also, by upgrading your systems to a franchiseable level and documenting every step in your process, working with international franchise developers can help you gain years of international level operations knowledge in a short time, perfect to prepare you for the AEC 2015.
  3. LOOK BEYOND THE PHILIPPINESThe AEC is an opportunity for every Filipino business to look beyond the 100 M customers in the Philippines to the over 600 M customers across Southeast Asia (SEA). Businesses should look beyond defending their customers in the Philippines, but aggressively pursuing growth strategies in other SEA markets. Franchising is a lower risk entry strategy in foreign markets given the advantage of using the money, time, and organization of local partners who know the market. It allows for a faster growth option than doing it alone and allows you to maximise the AEC integration by entering multiple markets at the same time.The AEC brings many challenges and opportunities for your business. Franchising is one strategy that can help you prepare by solving these 3 critical issues and ensuring that the AEC brings exponential growth to local brands and businesses.