2020: What To Expect in International Franchise Development, Part 3
Despite the political, economic, and trade “festivities” going on around the world today, there are increasing opportunities for new franchise global development in 2020 and beyond. I asked international franchise specialists in my network who reside and work in various regions of the world for their advice for 2020.
Editor’s Note: The last of 3 articles in this mini-series includes perspectives on franchising in Asia from franchise experts in Singapore, Vietnam, and New Zealand.
Albert Kong, Senior PMC, Chairman/CEO, Asiawide Franchise Consultants (Singapore) Asia, being quite very diverse, ranges from nations like China (Greater China includes Hong Kong, Macao, and Taiwan), India, Japan, and Korea, to Southeast Asia and its 10 different nations (see below). With differences in race, language, culture, and religion, different countries would commonsensically have different wants (for example, halal versus non-halal foods; services catering to the elderly in an aging society versus a younger one, etc.). However, there are certain common trends taking place in many parts of Asia. The trend of “premier” or more “Instagrammable” fast foods coming to Asia will continue, as will STEM-type enrichment franchises where children learn coding and robotics. Asian parents are known to be more anxious than others about their children’s future, so any help to give their children a leg up in the future will have a market, especially if it is high-tech and futuristic.
Sean Ngo, CEO/Co-Founder, VF Franchise Consulting, Ho Chi Minh City (Vietnam) Some clear franchising trends are apparent across Asia. These trends in many ways reflect the young, though fast maturing, population focused on healthier and more sustainable living, driven by higher disposable incomes and living standards. Nowhere is it more noticeable than in the F&B, lifestyle, and education industries. Food establishments that focus on healthier, higher-quality, and fresh food have seen a meteoric rise throughout Asia. An estimated 25,000 fitness clubs exist across 14 regional markets in Asia, and the annual spend is US$16.8 billion. A swelling middle class and rising household incomes are also driving significant growth in private education spending. Asia/Pacific’s private education market is estimated to be worth a staggering US$370 billion, with childhood education leading the growth of this category.
Stewart Germann, Stewart Germann Law Office, Auckland (New Zealand) Trends in franchising in both New Zealand and Australia suggest more multi-unit ownership by franchisees. In New Zealand, with no franchise-specific legislation, it is very easy for new brands to enter and be adopted, unlike in Australia with its franchise legislation. I see fitness centers continuing to expand, especially in New Zealand. Many people strive to be fit and have a daily routine in a suitable gym, which often is open 24/7. With e-bikes and electric scooters becoming prevalent, this trend will continue well into 2020 and beyond. With 630 brands in New Zealand, there is certain to be further expansion with professional and dedicated franchisors striving to do better in the interest of making franchisees more profitable.
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