July 5, 2018 | 12:08 am
By Janina C. Lim, Reporter
THE LOCAL franchise industry is confident of breaching the P1-trillion revenue mark this year as it aggressively positions the Philippines as the “franchise hub of Asia.”
“In 2017, the contribution of the franchise sector is $18.1 billion or almost P1 trillion,” Philippine Franchise Association (PFA) President Richard V. Sanz said during a press briefing in Makati City on Wednesday.
“Internally, we’re looking at 15 to 20% (growth)… I’m optimistic in a 20% growth” he told reporters separately, when asked for the growth forecast for 2018.
If realized, the sector’s 2018 revenues will reach $21.72 billion or P1.15 trillion.
The growth will be driven by the $3-billion investment it expects to generate solely from the Franchise Asia Philippines 2018 Conference and Expo, touted as Asia’s biggest franchising exhibit. The week-long event, which starts on July 18, expects to draw 60,000 visitors.
However, basing projections on a conservative 10% annual growth, the PFA said revenues will hit $24 billion or roughly P1.3 trillion by 2020.
At present, there are about 2,000 local and international franchise brands in the country, with 200,000 stores and employing 1.2 million.
PFA Chairman Emeritus Samie C. Lim noted the growing foreign investments in the franchising sector, describing the Philippines as “the apple of the eye of foreign brands.”
To further position the Philippines as an international franchise development center, Mr. Sanz laid down the PFA’s agenda for the next two years, with the globalization of homegrown brands as its number one priority.
“We have noticed that a lot of Filipino brands are ripe to be in the global arena. We have more than 50 Filipino brands globally. We want this to increase so this is something we are pushing for,” Mr. Sanz said.
He added PFA is looking to concentrate the expansion within the Association of Southeast Asian Nations (ASEAN) due to its close proximity to the Philippines.
Mr. Sanz said the group will also be supporting micro, small, and medium entrepreneurs through mentoring programs and regional trade shows.
“The small and medium agri-businesses, the farmers, can integrate their products into the value chains of the PFA members,” Mr. Sanz added
This article is copied and originally published by Business World on July 5, 2018 and is also available online at http://bworldonline.com/phl-franchise-industry-seen-to-grow-by-15-20-this-year/