CEO of Asiawide Franchise, Albert Kong, an expert on franchising in Asia, believes that to franchise successfully, you have to choose the right time. Vietnam is in that favorable context.
Present in Ho Chi Minh City to prepare for a seminar on franchising on December 18, Mr. Albert Kong said that according to research data from Asiawide Franchise in many countries, during economic crises, the number of businesses participating in franchising increases more than usual.
With 15 years of experience in the franchising industry, Mr. Kong believes that to franchise successfully, the problem is choosing when to start. For example, many years ago, fast food chain Kentucky Fried Chicken made a landing in Hong Kong but failed because consumers were not familiar with KFC fried chicken. However, during the Asian economic crisis 10 years ago, a generation of young people from this special economic zone who studied abroad returned home, bringing with them a new lifestyle from Europe, including fast food. At this time, fast food brand Pacific jumped into the market and quickly became successful in Hong Kong.
Talking to the press, predicting an explosion in demand for franchising in Vietnam, Mr. Albert Kong said: "There are 3 main reasons why franchising becomes a business opportunity in difficult times."
Firstly, the economic crisis has caused unemployment to increase, many investors are looking for business opportunities while franchising will reduce risks for businesses. Next, the stock market is facing difficulties, access to credit is limited due to banks tightening lending..., then franchising is a good choice for investors with self-funded capital.
“The biggest problem in the Vietnamese market is intellectual property management when franchising. This is also the franchise experience of the Trung Nguyen coffee brand over the past ten years,” said Mr. Albert Kong.
Meanwhile, many Vietnamese businesses are also considering franchising, especially when the retail market fully opened in early 2009, but do not have enough resources to do so.
Ms. Ngo Le Thu, Deputy General Director of Sales of Saigon Trading Group (Satra), said that the group has a lot of potential to franchise Satra's famous brands. However, each brand has its own advantages and disadvantages, so it is necessary to build a standard model and register intellectual property before franchising.
Satra is a trading corporation that currently owns many major brands in Ho Chi Minh City, especially in the food industry such as Vissan, Agrex...
According to Ms. Thu, Saigon Livestock Industry Company (Vissan) has a system of distribution and retail stores spread across the country, so it is very suitable for franchising. However, most of Vissan stores are still rudimentary and need to be upgraded and operated according to a standard model. "This is a disadvantage that makes Vissan unable to franchise immediately and needs a professional franchise consultant," Ms. Thu said.
Saigon Agricultural Products Export Joint Stock Company (Agrex) is facing another difficulty. The company representative said that Agrex exports a lot of goods to European countries but currently has not formed a domestic store system. Therefore, in order to franchise, Agrex must first build a standard store system.
Satra Sales Director Dao Ngoc Tam believes that the current economy is full of uncertainties, franchising is the optimal choice for investors, especially for start-up entrepreneurs. That is also the reason why Satra signed a franchise consulting cooperation contract with Asiawide Franchise to connect and bring strong domestic brands to sell abroad and vice versa.
According to Vnexpress
