Overview of the Thriving Franchising Industry in Asia 2023 and beyond
The franchising landscape in Asia has experienced a robust surge in recent years, establishing the Asia-Pacific region as the global leader in the franchise market, contributing to over 30% of all franchised businesses worldwide, as reported by Franchising.com.
China spearheads the Asian franchise market, boasting an impressive portfolio of over 4,000 franchise brands and a staggering 500,000 franchise outlets. This market giant’s prominence underscores its pivotal role in the regional franchising ecosystem.
ASEAN’s Growing Influence:
Southeast Asia (ASEAN) emerges as a dynamic and evolving market for franchising, with countries such as Indonesia, the Philippines, Thailand, Malaysia, Singapore, Cambodia, Myanmar, and Vietnam gaining renewed attention. The region’s allure lies in its youthful labour markets, rapidly expanding middle class and cost-effective living standards.
Other East Asian nations are not far behind, with South Korea experiencing a remarkable 50% increase in franchise brands since 2010. Japan stands as a major player in the Asian franchising scene, boasting over 1,500 franchise brands and 240,000 franchise outlets. Taiwan has also witnessed a notable 20% growth in franchise brands since 2010.
Countries in South Asia, particularly India, are witnessing substantial growth in their franchising industries. Entrepreneur reports an impressive 30-35% year-on-year growth in India’s franchising sector, projected to reach USD 100 billion by 2024. India currently holds the position of the third-largest franchise market globally, following the US and China, with over 4,600 active franchisers and nearly 200,000 outlets operated by almost 1.7 lakh franchisees.
Key Trends Shaping the Franchising Industry in Asia:
*International brands are increasingly drawn to Asia, captivated by its vast population and burgeoning middle class, making it a strategic playground for global expansion.
*Franchisors are leveraging technology to enhance operations and deliver superior service, reflecting a broader trend toward digital transformation within the industry.
*The rise of health-conscious consumers has fueled a growing demand for healthier food options, prompting franchises to diversify their offerings and cater to evolving dietary preferences.
*Sustainability and environmentally friendly practices are gaining prominence in the franchising industry, with many franchisors adopting eco-friendly initiatives to align with evolving consumer values.
As the franchising industry continues to flourish across Asia, these trends underscore the region’s dynamic landscape, where innovation, adaptation to consumer preferences, and sustainability practices play pivotal roles in shaping the future of this thriving sector.
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