Just as no man is an island unto himself, no business can thrive without acknowledging the larger ecosystem it engages in. In this way, an economy’s true vitality is not just measured by its year-on-year growth or trade balance, but also in how it appeals to the world at large.
So, when the Philippine Franchise Association (PFA) urged global brands to lease their franchises in the Philippines during the Franchise Asia Philippines 2023-International Franchise Expo late last year, they were not simply inviting investment — they were introducing the Philippines as a dynamic marketplace primed for growth.
Attracting global players represents a vote of confidence in the country’s economic stability, consumer potential, and long-term growth trajectory. Meanwhile, as foreign franchises pour in, they bring expertise, innovation, and global standards, effectively creating a positive feedback loop that can have a multiplier effect on a country’s development. Global brands can boost employment, spur local competition, and expand consumer choice, all while creating a signal to other nations that the particular country has the necessary factors for growth and opportunity.
“We are very excited with these because the future is Asia, and the Philippines will be the launchpad for what the Asian economy will be able to seize for the global market,” PFA Chair Sherill Quintana had said during the event, which also coincided with the meetings of the World Franchise Council (WFC) and the Asia Pacific Franchise Confederation (APFC).
Ms. Quintana’s statements were backed by projections saying that the Philippine franchise industry will have a vibrant revenue growth rate of 10% to 13% over the next five years. According to the PFA, total revenues of the Philippine franchise industry had already hit P27 billion, which exceeded the pre-pandemic level of P25 billion.
20% of the participants of the International Franchise Expo are international brands, from countries such as Australia, China, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand and the United States, and more than 50,000 exhibitors attending.
Franchise Asia Philippines 2023 overall Co-Chair Richard Sanz noted that it was the first time for a franchise event to occupy the entire SMX Convention Center in Pasay City to showcase 1,000 local and global franchise brands from 26 countries.
“This highlights the continued interest among Filipinos in franchising as an investment option,” he added.
Since then, Mr. Sanz’s statement has been proven true. Not long after the expo, Korea’s premium Korean egg sandwich brand, EGGDROP, by Golden Hind Co., Ltd., announced the opening of debut store in the Philippines, the brand’s second global store following the one in Bangkok, Thailand.
The debut is part of a multi-franchise agreement to open five stores in the Philippines. EGGDROP will launch two stores in the Philippines in the first half of 2024, followed by three additional stores in the second half of the year in key locations.
Another brand that has made its debut in the country is Duck Donuts, the beloved North Carolina-based donut franchise renowned for its warm, made-to-order donuts. The first Philippine store, located in Angono St., Makati City (near Makati City Hall), is even a standout for the brand, as it was designed to be the biggest among its over 160 locations in 12 countries.
French-Japanese fashion label Maison Kitsuné also landed in Philippine shores with its first boutique store at Shangri-La Plaza in Manila that merges both French and Japanese design influences. The brand is best known for showcasing a variety of ready-to-wear clothing, bags, accessories, and shoes.
Even the French luxury brand Moreau Paris have opened its doors in Manila. Moreau Paris has set up its first shop in the Philippines at 8Rockwell, offering its signature leather goods hand-crafted with the finest techniques.
Meanwhile, leading Southeast Asian womenswear brand, Love, Bonito, also announced the opening of its first brick-and-mortar store in the Philippines. Launching this year at Greenbelt 3, Makati City, the inaugural store will feature the brand’s newly unveiled identity and revamped assortment strategy following its recent rebranding.
“The Philippines remains one of our fastest growing markets, with a constant double-digit year-on-year growth since 2019,” said Dione Song, chief executive officer of Love, Bonito. “Unlike traditional retailers, Love, Bonito started as a digitally-native brand, but over the years, we have grown to understand the importance of being physically present where our community is. The pop-ups and showrooms we’ve done locally gave us much insight into our local customer base as well as the mall culture.”
As the country continues to grow, the more it will become appealing to global brands. It reflects a continuing shift in how the country is positioning itself on the global stage. Each new franchise is a boost to the message that the Philippines is a land of opportunity, and that it is open for business. — Bjorn Biel M. Beltran