Overview of the Franchise Business in Myanmar

Franchise companies are rising at a fee quicker than another sector of the financial system. And they’re creating jobs at a quicker tempo too.

In America for the fifth consecutive yr, 2015 is predicted to see one other massive enlargement – 5.1% in accordance with projections from the International Franchise Association.

In the UK progress from 2003 to 2013, when the most up-to-date comparable knowledge is on the market, exhibits that franchising expanded by 42% in phrases of its turnover, nicely forward of the 11.5% progress in actual GDP.

And in Myanmar????? Yes Myanmar – the new profitable Asian franchise market.

New to the franchise business it naturally lags behind its Asian neighbours: Indonesia has 486 franchise manufacturers and 39,000 retailers; Malaysia has 666 manufacturers and 5066 retailers; Philippines has 1500 manufacturers and 140,000 retailers; and Singapore has 500 manufacturers and 3000 retailers (PFA). The business in these nations, as in USA and UK, creates jobs and contributes to GDP. Myanmar goals to comply with this and has just lately arrange their very own Franchise Association.

At current the Association has many hurdles to beat particularly because it has restricted legal powers and the Government doesn’t absolutely help the group, however it’s early days. For franchisors, Myanmar has been seen as the remaining Asian frontier and is attracting curiosity from abroad nations, Japanese and Korean meals franchises are particularly well-liked. These chains will typically maintain some of their home meals style gadgets to distinguish and appeal to shoppers in search of conventional flavours. Bigger identify corporations similar to KFC and Starbucks are actively researching Myanmar as the low overheads and lack of competitors are key drivers of entry.

Myanmar has a inhabitants of over 50 million shoppers and the SME enterprise thrives, accounting for 97% of all corporations. For these smaller corporations a extra organized franchise system would give them the alternative to discover franchising as a route for progress. At current there are at present about 50 principal franchise manufacturers in the nation however as the franchise laws enhance and franchise information turns into extra widespread we hope to start out a pointy upturn in this quantity.

Presidential financial adviser, U Aung Tun Thet, said that the foremost hurdle shouldn’t be a scarcity of particular legal guidelines or associations, however only a lack of information of how franchises function.

There are concrete steps that may be taken to help improvement of franchises, Myanmar’s franchise affiliation must be recognised and supported by the authorities an. Hopefully the Government will pay attention and franchising can be a robust contributor to GDP and an financial driver over the coming years.

Source by Darren Harris

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