InfoQuest, (July 10, 2019) -- Mr. Wuttikrai Leeveeraphan, director general of the Department of Business Development (DBD) of the Ministry of Commerce (MOC) of Thailand, revealed that currently the total market value of Thai franchise business exceeds 280 billion baht, with an average annual increase rate of 20.3 percent; each year, there are new enterprises that show interest in engaging in the business. Currently, Thailand is home to 15,000-20,000 franchise enterprises, which can be classified into five categories: over 50 percent is food and beverage, and the rest is retail, service, beauty and SPA, and education. Compared with Thailand's overall economy, franchising shows a sound trend of increase.
"Franchising is a model that brings fast business increase. Yet it is not easy to put business under such a model and get success." Business eligible for franchise rights should ensure adequate preparations in all aspects and have strength, which can build confidence among franchisors and franchisees as business partners. Besides, franchising can help enhance competitiveness in international market and create economic value for the country," said the director general.
According to Mr. Wuttikrai, nowadays for SMEs to grow their business strength, they have to use technology, innovation and idea to grow business and become smart entrepreneurs. To realize stable growth, enterprises have to lay a solid business foundation in terms of concept, efficient workflow, and marketing capability. This is the major guideline of the MOC in promoting business development, including franchising in Thailand.
To lay a solid foundation for Thai franchising, the MOC is committed to facilitating well-established brands and enterprises seeking to expand market in various regions to become franchisors that can expand investment and jointly develop market with franchisees, and ensuring that franchising business follow the quality standard formulated by DBD, so as to unleash business potential, enhance the competitiveness and management capacity of franchising, and establish a reputation in home and overseas markets.
Thai franchisors should build confidence for investors and consumers, promote sustainable development of enterprises, shape brand image, formulate development strategy, put in place a marketing model that enables shared growth of franchisors and franchisees, facilitate franchising business in expanding presence in home market and making investment, and extend these practices among foreign investors, namely, spreading these practices worldwide with the CLMV (Cambodia, Laos, Myanmar and Vietnam) as a starting point; DBD should use public relations, media, trade fair, and business negotiation to enhance the visibility and popularity of Thai franchising, and integrate the expertise and skills of government and private agencies for integrated development.
This year, 65 enterprises obtained franchise rights, including 33 food enterprises, 12 beverage enterprises, 6 service enterprises, 5 baking enterprises, 4 education enterprises, 4 retailing enterprises, and one beauty and SPA enterprise. Among these enterprises, 10 were selected as "Best Practice", including: Ship Smile Services, Phoenix Lava, RIN RIN, Shabu Pungkang, Kobori Food, Dallas Steak (Thailand), Goodfoods Corporation (Goodday), Joy and Coyne Corporation (JC imart), Teelek Foods, and Wanaka Takoyaki.
Source: InfoQuest, by Phana / Kasamarporn / Rachada, translated by Xinhua Silk Road
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