BRAND EXPANSION CONTINUES, BUSINESS OPPORTUNITIES TO BE SEIZED SMES AND BUSINESS STARTERS DEVELOPING THEIR BUSINESSES THROUGH FRANCHISING

In recent years, Macao’s economy has been developing steadily, towards becoming a world tourism and leisure centre, as well as aregional business and trade service platform. The flourishing tourism industry motivated the prosperous growth of the retail industry. Various world renowned brands have established their businesses in Macao through franchising and chain operation. They have not only enriched the tourism element, but also enhanced the image of the city. A number of local SMEs have also taken advantage of franchising operations to transform or upgrade their businesses for further expansion.

INCREASING POPULARITY OF FRANCHISINGAND CHAIN OPERATION MODELS

According to statistical data, retail sales volumes amounted to MOP43.34 billion in 2011, registering a year-on-year increase of 42%. An increasing number of brands, chain enterprises, food and beverage and retail enterprises from different countries and regions are tapping the Macao market, to develop their businesses through franchising operations. At the same time, local enterprises also promoted local quality and renowned products and services through franchising.

Brand co-operation, franchising and chain operations are relatively the more sophisticated models in the business sector, with the advantage of sharing existing reputation, brands and size as well as lower costs. There is also additional support in staff training, market analysis, technological support and fostering enterprise growth. A franchising operation is more beneficial to business starters as it is relatively easier to get business operations on track.

Under CEPA, the threshold for Macao SMEs to tap Mainland markets have been gradually lowered, expanding businesses through franchising operation can help to reduce the risks of market development.

IPIM WORKS TO ENCOURAGE SMES TO ENTERTHE FRANCHISING BUSINESS

Following growing awareness in franchising, chain operation and patent authorisation in local business and industrial sectors, more and more business starters and SMEs are entering the franchising business. As such, IPIM has been working on a series of activities since 2008, including the organisation of themed seminars, workshops, business matching sessions, thematic websites, as well as the setting up of Franchising Area in major exhibitions. In recent years, IPIM has also organised local enterprises to take part in various training courses, as well as participating in fact-finding visits and themed exhibitions in Taiwan and received considerable results.

In 2009, IPIM worked with various local and overseas franchising organisations and co-organised the first “Macao Franchise Expo” (MFE) which accomplished a series of co-operation projects and introduced a number of renowned overseas franchising brands. To fully utilise its role as an international gateway, and promote networking and liaison between local and overseas enterprises through activities, MFE was renamed in Chinese in 2011 so as to establish a franchising and trade platform for franchise operations, international chain brands and foster the development of MFE and Macao market to be a showcasing platform in the long run.

“2012 MACAO FRANCHISE EXPO” (MFE) TO BEHELD IN JULY

Organised by the Macao Trade and Investment Promotion Institute(IPIM), Brazilian Franchise Association, Association of Chain and Franchise Promotion, Taiwan, Macao International Brand Enterprise Commercial Association (MIBA), Macau Chain Stores and Franchise Association and Licensing and Franchising Association of Hong Kong, with the support of the China Chain Store and Franchise Association(CCFA), International Franchise Association (IFA) and Japan Franchise Association (JFA), co-organised by Korea Franchise Association, Malaysian Retailer-Chains Association, Philippine Franchise Association and Thailand Franchise Association, coordinated by the Association of Advertising Agents of Macau, the Macao Franchise Expo2012 (2012 MFE) will be held from 6 to 8 July 2012 at Cotai Expo Hall D of the Venetian Macao – Resort – Hotel.

HIGHLIGHTS OF 2012 MFE

•The three-day event comprises of four major types of a ctivities including exhibition, forum, business-matching and seminar on brands promotion.

•Participation of more international brands – involving around 200 brands from France, Hong Kong, Japan, Korea, Macao, Mainland China, Malaysia, the Philippines, Singapore, Thailand, Taiwan and Vietnam.

•Exhibiting industries include food and beverage, retail, service, education, beauty healthcare, leisure and entertainment, market consultancy, among others

•2012 MFE Brand Re-packaging Consultancy Pavilion, Food tastingareas and plaza serving food delicacies from Macao will be set up Professional forums and conferences are also the focus of the event.

Four forums will be held during 2012 MFE, including the “Forum on Chain and Franchise Business Opportunities of International Brands- International Strategy for Franchise and Chain Store Industry”, as well as other the matic forums and conferences organised by Macao International Brand Enterprise Commercial Association, Macau Chain Stores and Franchise Association and Association of Chain and Franchise Promotion, Taiwan to assist SMEs and business starters to gain better understanding of the operation concepts of franchising and chain operation and how to make the best use of the strengths of the brands.

Looking to the future, MFE will gradually develop into a platform for brand enterprises and provide assistance to start up businesses. Based on the experience in organising MFE, the organiser will be working in line with the development in moderate economic diversification, regional co-operation and the growth of SMEs, and aims at introducing more overseas brands, as well as assisting local brands to tap the international markets.