The Philippines continues to be the franchise hub of Asia
By Sam Christopher Lim, Chief Marketing Officer, Francorp Philippines
With a population of over 101M, a young, English speaking population and a central geographic location that is just a 3 hour plane ride to major ASEAN capitals, the Philippines is now the franchise Hub for Asia. 5 things set the Philippines apart when it comes to franchising:
- A young population – with a median age of 23 years old, the Philippines has one of the youngest populations in Asia.And with 62% of the population at working age, it is at a demographic ‘sweet spot’ giving brands a large potential base of consumers. And with over 33M of the population under 14 years old, concepts that target kids as well as educational and enrichment franchises have strong potential to tap this market.
- 24/7 Market– with a growing Business Processing Outsourcing sector, the Philippines has a 24/7 market which has driven the growth of convenience stores, 24-hour food establishments and service sectors that cater to them.
- 10M international Filipinos – with 10% of the population working internationally, Overseas Filipino Workers remit over US$ 27B back to the Philippines every year. This creates a huge market given a strong segment that is exposed to and seeks out international brands.
- Well-developed franchise market – with over 1,500 franchise brands (35% foreign, 65% local), a diverse franchise sector (44% food, 27% retail, 26% service, 3% education) and an average of almost 100 outlets per franchisor, the Philippines is one of the most developed franchise markets in Asia.
- Highest number of Certified Franchise Executives(CFE) in Asia–The CFE is a mark of excellence & professionalism in franchising and with the Philippines investing in constant education, it now has the highest number of CFEs in Asia, giving you a large potential franchise workforce for both your Philippine and Asian expansion. This has led to the rise of many international franchise brands using the Philippines as a regional hub for both franchising and training.
With franchising achieving a 90% success rate, the industry is well supported by an eco-system of services. Banks provide both franchisors and franchisees loans, the government provides training and support for SMEs and an established Philippine Franchise Association that guides members to abide by fair franchising standards. In addition, international franchise consultants, lawyers and franchise matching companies are available to assist foreign brands that plan to enter the Philippines or expand across the region.
With the ASEAN Economic Community in full swing, and a rapidly integrating region, the time to expand into Asia is now, and the Philippines can serve as a perfect hub for regional expansion.
Francorp helps businesses scale up through franchising by helping entrepreneurs create detailed operations manuals, professional business plans, franchise legal agreements and conducting regular How to Franchise Your Business Seminars. For more information contact Francorp Philippines at (02) 638-3149,(+63917) 835.55.30, email email@example.com, or visit francorp.com.ph.
Chris is the Chief Marketing Officer of Francorp Philippines; president of U-Franchise Sales & Management; and chairperson and director for special projects, ASEAN integration-Philippine Franchise Association