Macao Franchise Expo (MFE) has set up a "Brand Repackaging Consultancy Service" and "Franchise Consultancy Service" to help entrepreneurs and small- and medium-sized enterprises understand how to create a franchised business. The service includes on-site experts and consultants in marketing and branding. There are also specialists in market development and brand retailing focusing on the Mainland China, Taiwan and Southeast Asia markets and providing professional analysis and advice. A total of 34 participants received assistance from the two consultancy services during the Expo.
Ms. Cynthia Lee, deluxe packaging designer from Taiwan, said that effective packaging for the product is very important. The packaging must be able to protect the goods during transit, against factors such as extremes of climate. As a result, the physical quality of packaging is very important, she explained. Another aspect is the appearance of the package, to ensure it suits the target market and the product's characteristics. For example, were Chinese medicine to be packaged in a Western style, the target consumer might doubt its effectiveness. But if traditionally Western products such as chocolate or fashion products were to use packaging based on traditional Chinese motifs or designs, consumers might equally doubt the quality of the products inside.
As to the costs of packaging, Ms. Cynthia Lee noted that the packaging need not necessarily be luxurious. The most important aspect is the value of the product. Too lavish a package for a popular product could even have the effect of making the consumer distrust the quality of what is inside. If the packaging is for a product to be offered as a gift, the purchaser will be concerned about the recipient's feelings, Ms. Cynthia Lee explained. Packaging for gifts to be given to superiors or important people should be of higher quality than for gifts given to friends and relatives, where the packaging should be more modest. So when considering the design of product packaging, it is important to determine the target market first, to avoid any negative impacts on sales. Mr. Albert Kong, Committee Member of the Franchising and Licensing Association (Singapore) and Chief Executive Officer of Asiawide Franchise Consultants Pte. Ltd, said that entrepreneurs should prepare thoroughly before considering joining a brand. That is because a franchising company tends to set the pace of business success. Bigger ones can be more stable, and offer more support to franchisees via head office in such areas as legal advice, training, and finance. Franchisors should not ignore the operation of the franchisee once they have received the initial franchise fee, because the quality of the franchisee's operations will ultimately affect the image of the brand. Therefore, franchise companies should hold to the idea of making money in partnership with the franchisees by helping them to operate and develop, rather than making money simply from franchisees' fees. Mr. Albert Kong welcomed activities at 2014MFE such as the business matching service to help would-be franchisees meet corporations and franchisors. But he explained that franchisees should consider various issues if they want to find the right franchise business. First of all, franchisees should consider if they are interested in a product or a service, and also the development of the products or services in the market, the legal issues of target markets, the financial capacity required, and the chemistry between franchisees and franchisors. These are the most important issues, he said, and will affect the future development of the franchisee. Mr. Albert Kong added that while he believed that chain operations is one effective way for businesses to expand, the most important thing is the strength of the product; that the brand owner is not afraid of competition; is not afraid of copycat behaviour by rivals; and can cultivate an excellent management team. With such an approach, business can be developed very well. Therefore, choosing a right path is the most important thing to develop an enterprise. Mr. Chien Chieh Shin, General Manager of C&Connection Biomedical International Corp., said that chain business is the best choice for expanding an enterprise quickly. But he added that participants must determine the direction of development and the image of the enterprise before joining. Franchisors should allow the franchisee to provide products or services connected to local consumers' tastes, because standard products might not be suitable for all markets. To persist with a rigid standard for products could be to invite corporate disaster. Mr. Chien Chieh Shin said when franchisees choose a franchise business, they should consider the future of the product, product characteristics, and product cost. Commenting on the challenges created in target markets by varying legal systems and standards, he said there was no such thing as a perfect legal system. The most important thing for franchisors was to find a trusted franchisee. Once that was achieved, legal issues could be solved.
