As an integral part of the Macao Franchise Expo 2012 (2012MFE), the Forum on Chain and Franchise Business Opportunities of International Brands – "International Strategy for Franchise and Chain Store Industry", held on the eve of 2012MFE (July 5), invited the senior management of franchise associations from Mainland China, New Zealand, Korea, Malaysia, Japan and Philippines to present an overview of the franchise market in their countries and share their insights on operational strategies at Macau Tower Convention and Entertainment Centre.
In her welcoming speech, Echo Chan, Acting President of Macao Trade and Investment Promotion Institute, said that professional forums and meetings have been one of the key elements of MFE and hence three thematic forums were held respectively on the following days of the event. The participants could be inspired by experience sharing of the speakers and these in-depth discussions, and their understanding of market updates and development trends were improved. It is aimed that more practical lessons to be learnt from interactive discussions and hence helping enterprises to explore more business opportunities in the course of market expansion, she noted.
According to Chan, retail, hotels, food and beverages industries have been further developed. There have been an increasing number of world renowned brands and chain operations tapping the Macao market and seeking to expand their business by means of franchising. In the meantime, a number of Macao's local brands, Chan stressed, have started to make use of various models such as brand co-operation, chain operation and product agencies to transform and upgrade their business. They also have entered neighboring markets by establishing partnerships with the view to "go global" to s.
Themed at "International Strategy for Franchise and Chain Store Industry", the forum focused on discussing issues that local SMEs are concerned about when developing a franchise business. The forum was consisted of two sections , keynote speech delivery and panel discussion. The first section invited Ms Guo Geping, President of the China Chain Store and Franchise Association, David Foster, Chairman of Franchise Association of New Zealand Inc., Kim Yong Man, the Chairman of the Korea Franchise Association, Dato' Nelson Kwok Teng Toong JP, President of Malaysian Retailer-Chains Association, and Kyo Ito, Chairman of Franchise Committee in Japan Small and Medium Enterprise Management Consultants Association, Tokyo Branch, to be the speakers and share about industry trends of different markets. With regards to the challenges in the franchise market, Guo articulated that the ever-increasing inflation would result in a rise in operating costs and an increasing period for the return on investment. A higher risk due to the demand on product quality such as food safety also has to be taken into account. David Foster recommended all franchise operators to review local characteristics of target markets and take advantage of this to recruit new franchisees to achieve a sustainable export market. Kim Yong Man recalled that there are many things to consider when launching overseas, since the cultural differences are inevitable. It is important to select an appropriate local partner and to adapt locally, doing friendly marketing and meeting the taste of the target market in order to satisfy the taste of the consumers, he argued. Kwok Teng Toong expressed that, for a company to develop their franchise business on an international scale, it is highly recommended to devise a set of tailor-made business strategies and thoroughly evaluate its own strengths, weaknesses as well as operating conditions. In the panel discussion, the representatives of franchise industries, including Jose Magsaysay, Jr., Vice President of Philippine Franchise Association, Todd Sinelli, representative of International Franchise Association, Member of International Committee, Yoshie Shigemitsu, Director of Ajisen Ramen Head Quarters, Shigemitsu Industry Co., Ltd, and Cheung Kin Ting, Chairman of Cousin Cousin Café were invited to share their insights with the moderator - Kevin Ho, Vice Chairman of Council Board of Macao International Brand Enterprise Commercial Association. The joint discussion concerning international strategy for franchise and chain store industry was carried out in lively atmosphere. The panellists brought out several issues for discussion, including the challenges or difficulties a brand might encounter when entering overseas markets, and staff training, and how a product strikes a balance between internationalization and localization. Some speakers believe that when franchise operator desire to enter an overseas market, they are advised to coordinate with the Franchisee for a mutual understanding of product or service nature in target culture, which, on one hand fits the target market, and achieves effective promotion and market development on the other hand.
