Crossing The Boundaries

International Franchising

Crossing The Boundaries

Singapore is the place to be in September when Global Franchising2002 returns

At the end of a cold wet New Zealand winter, there's no better place to go than Singapore. In September last year I found myself sitting in an open-air restaurant on a warm equatorial night with four companions from New Zealand and Australia. There were two things we agreed upon. The first was that it was a beautiful place to spend a few days. The second was that we were all learning an incredible amount about franchising, and the franchise potential of Asia in particular.

Franchising might have started in the US, but it's been expanding round the world ever since and shows no sign of slowing. In the past few years, Asia has become a prime market for franchised businesses, and Singapore has successfully positioned itself as the regional hub for franchising. Key to this has been Global Franchising, Asia's most international franchising event, which was what drew my companions and me to Singapore last year and will take us back again this year.

Global Franchising, themed this year as Crossing the Geographical Boundaries of Business Opportunities, is an international conference and exhibition for franchising, licensing and business opportunities. To be held in Suntec Singapore from 18-20 September 2002, the exhibition is expected to attract the participation of 220 companies from over 20 countries. Highlighting the fact that this has now become a global event, rather than a purely local one, SES project manager Jackson Yeoh says he is expecting more than 9,000 trade visitors to attend, with 20% coming from overseas. 'Global Franchising2002 promises another display of franchises galore, featuring a wide assortment of tested-and-proven business concepts and brand names.'

International Focus

You cannot compare Global Franchising to the franchise expo's we experience in New Zealand, or even to the larger Australian events. The focus is very much an international one, with seven or more national pavilions from participating countries. The emphasis is on finding master franchisees for whole countries rather than individual franchisees, and there is no doubt that people are there to do business. Looking at last year's Show Directory, over 30 companies specifically mentioned New Zealand as an area where they were seeking people, and that number is almost certain to be higher this year.

'Of course, if you are looking to import an entire franchise system to New Zealand you have to be careful,' one Kiwi visitor commented last year. 'Asian cities tend to have high population densities which we don't, so what works in Singapore or KL will not necessarily work here. But there are lots of bright new ideas coming out of the region, and you see a lot of new things from the US and Europe too. I wouldn't miss it.'

One very popular innovation in 2001 which enabled visitors to maximise their time at the exhibition was the efficient Business Matching Programme, which matched potential buyers with sellers prior to the event. Exhibitors submit their franchise concepts to the organisers, along with details of the type of potential franchisees they would like to meet during the show. Visitors in turn inform the organisers of the type of franchise in which they would like to invest, and state the approximate amount of money they have for investment. They are then matched up, and both parties informed. The programme was a great hit last year, and is being repeated for the 2002 event.

Top Names

Another big draw to Global Franchising is the associated conference. The 2001 event attracted some of the world's best franchise names as speakers, and another impressive line-up is promised again this year. However, it was notable last year that some of the best presentations came from Singapore's own franchise community - evidence of the speed with which the Asian countries have brought themselves up to speed with franchising best practice.

New Zealand franchisor Ben Ridler, who attended Global Franchising2001, commented then that 'Franchising is really taking off in Asia, the way it did here 5-10 years ago. Having spent a month talking with various business owners, I saw that they have the same sorts of problems and challenges we do here, and they are realising that the advantages of being in a franchise group outweigh the additional expenses. Several of the Asian governments, like Singapore, are very franchise-friendly too - the resulting opportunities are amazing.'

In fact, the Singapore government has been very keen to develop the necessary infrastructure to support the growth of franchising through the Singapore International Franchise Association, SPRING Singapore (the Standards, Productivity & Innovation Board) and IE Singapore (the former Trade Development Board). The result has been rapid growth which now sees some 350 different franchise systems operating in the tiny island. Singapore has also become a 'first stop' for companies wishing to expand elsewhere in Asia, drawing upon its long history as a trading centre, its stable economy and corruption-free reputation.

Global Franchising2002 also continues with the tradition of offering a series of value-added programmes and concurrent events welcomed by both exhibitors and visitors to the show. Franchise Opportunities Seminars allow exhibitors to present detailed background information and available business opportunities to potential franchisees. Highlighting selected franchise opportunities from various industries, the seminars enable interested franchisees to find out more about products and services, marketing strategies and business formats so that they can make better-informed business decisions.

Brand & Franchise Clinics provide one-to-one business advice to investors/businessmen and entrepreneurs interested in starting a franchise business or expanding their existing franchise operations. A number of prominent industry consultants will also be present at various times during the show to cover other topics relevant to franchising.

Providing an additional draw for delegates from throughout the Pacific Rim, SIFA will be hosting the Asia Pacific Franchise Confederation (APFC) Meeting in conjunction with Global Franchising2002. This provides a forum within which each national Franchise Association in the Asia Pacific Region can share experiences and exchange information. Apart from meeting counterparts in the franchising industry, participants will be able to further develop their industry networks as well as share technical know-how on franchising. The Franchise Association of New Zealand was a founder member of APFC, and will be represented at the meeting.

There are many good reasons to be in Singapore in September. If you are looking for a new idea to import to New Zealand, there will be plenty on offer from all over the world. Franchisors can learn from other systems and investigate new opportunities, while those involved as advisors can make valuable new contacts. Above all, there is so much to learn - not just about business in Asia, but about the changing nature of franchising. Global Franchising2002 is the place to watch the trends. And then, of course, there are those lovely warm nights...

Reaffirming the commitment to promote the franchising industry, SES (Singapore Exhibition Services Pte Ltd) and SIFA (Singapore International Franchise Association) have inked an agreement to jointly organise the premier franchising trade event, Global Franchising, for five years. Signing the Memorandum of Understanding of this inaugural joint organization of Global Franchising on 4 February 2002 is Mr Robert Leong, Chairman of SIFA, and Mr Stephen Tan, Chief Executive of SES.

'Co-organising Global Franchising with SES is in line with SIFA's core objectives of supporting and engaging in activities that nurture and develop Singapore's franchise industry in both the domestic and international markets,' says Mr Leong. 'This partnership creates a win-win situation whereby SIFA can leverage on Global Franchising as the ideal platform to further its objectives, whilst Global Franchising can tap on SIFA's franchise expertise and industry contacts.'

Commenting on this partnership with enthusiasm, Mr Stephen Tan of SES says, 'We are indeed very glad and honoured to have forged this agreement with SIFA. With SIFA's strong support and industry contacts, we are confident that this partnership will enhance the profile of Global Franchising, elevating it to greater heights. This sends out a very strong message to our counterparts in the franchising industry, as well as signalling the value of this trade event.'

Contact

To be held in Suntec Singapore from 18-20 September 2002, Global Franchising2002 and its associated conferences or seminars are open to trade and business visitors. For more information, see the website at www.gfranchising.com .