You might have dreamt of owning a foreign brand. Before, foreign brands were owned by big players only. Now, foreign brands prefer smaller local players as long as they can grow the brand. Smaller players put more time and attention to the brand compared to bigger players with a diverse portfolio.
“They don’t just want to be one of the many brands under a bigger company’s portfolio—when that happens, the focus is not on their brand but on the company’s more established and bigger brands,” shares Hans Clifford Yao, managing director of the Adrenaline Group, which brought in Petit Bateau, a children’s apparel retailer from France, and The Paper Stone, a Singaporean stationery brand.
Here are five reasons why it is sometimes better to invest in a foreign brand:
1. Brand and marketing discipline
A foreign brand has clear and established brand guidelines. You don’t have to invest in: development of a new concept, branding, and marketing strategies. Foreign brands have yielded favorable results in different markets, but the foreign franchisor should be flexible. It must not only adapt to the local market, but it must also put their foot down when localization destroys its concept—it’s about balance.
2. International standards and products
When you buy a foreign brand, you don’t have to learn how to market and operate it from scratch. A foreign brand teaches you the best practices. They will also provide world-class franchisor support. There’s no need to invest in product development. You’ll also get continuous research and development support.
A foreign brand is already backed by numerous trusted suppliers and service providers. Hence, buying a foreign brand affords you speed in setting up the business.
Normally, a furniture retailer will take at least three months to set up. However, the contemporary French furniture brand Gautier was able to set up the store in just three days because they sent their team from France to help with its construction.
“For The Paper Stone, the process only took six months because of the referral,” recalls Yao.
When you have a startup business, it can be hard to secure a spot in prime locations, but a foreign brand can easily secure a good spot in prime locations like malls. Also, these brands have previous experience in negotiating for good locations in different countries.
5. Brand recognition
You can ride on a foreign brand’s equity and strength. Most foreign brands are easily recognized, and they’re profitable where ever they set up shop, but don’t focus too much on foreign brands. You must also look at other available options in the market.
Ask your OFW (Overseas Filipino worker) friends about foreign brands which might work in the Filipino market.
“It’s worth it to invest in a foreign brand, especially if you are really addressing a gap in the market and bringing in something new that the local market has been demanding for,” notes Yao.