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COSTO: The revolutionary retail chain expands its wings
COSTO retail chain has announced the opening of their second store in Kuwait after the successful run of their pilot store in Khaitan. Costo Khaitan has received phenomenal response from customers from day one of their operations. COSTO is a customer driven purchase store where customer feedbacks determine the future products in the store. Giving customers the delight to buy exactly what they want, be it any brand or product. The Fahaheel store spread over 11,000 sq/ft, unlike normal supermarkets and hypermarkets will feature a limited set of products across categories that caters to all necessary needs of a customer. Costo is part of Regency Group which is among the foremost retail players in GCC region. The best price for customers is made possible as the group has its own sourcing centers in Turkey, China, Indonesia, Thailand and Sri Lanka. This ensures the best quality products reach customers in minimum time at the lowest prices. The concept of Costo was arrived after a lot of in-depth research done by group’s internal research along with consultants from Europe and Turkey. Team Costo is in fact delighted that they chose Kuwait to launch this retail brand as customer response has been overwhelming which has further strengthened their belief in this revolutionary retail concept. The vision of Costo is to be the preferred retailer providing anything from Fresh, Food & Non Food, butchery, household, fashion, footwear, electronics, mobiles and laptops at world class quality at best possible prices. Perishable goods, farm produces and meat are exclusively flown in from around the globe on daily basis to offer uncompromised quality standards. In order to achieve their mission of reaching every customer, the promoters, Regency Group, aim to spread this retail store in all the major areas of Kuwait. 3rd store is all set to open before the end of this month, further details will be revealed after Fahaheel store opening.   Source: https://news.kuwaittimes.net
Franchise Industry
Retailer Miniso plans to open nearly 100 new stores in Mexico this year
Retailer Miniso plans to open 92 new stores in Mexico this year, increasing its presence to a total of 200 stores. The company said the new store openings were part of a larger push to expand into new markets in Latin America, in addition to reinforcing its presence in Panama, Colombia and Mexico. The low-cost retailer and variety store chain has also attracted the interest of significant investors. In February, Grupo Sanborns announced that it had reached an agreement to invest in the company. The company said each of its Mexican stores sees an average of 1,500 shoppers per day, 29% of whom make a purchase. That number is on the rise, along with the number of Mexican businesses interested in opening local franchises. “Miniso has been a success since it was introduced to the Mexican market in 2016”, said Marketing Director, César Medina.   Source:https://www.eleconomista.es/  
Franchise Industry
Amazon Cash is now available in Oxxo, the top corner store chain in Mexico
Amazon is now accepting cash payments through Mexico´s top corner store chain “Oxxo”, both companies have announced, opening a major channel for the e-commerce leader to reach millions of people in Mexico who rely heavily on cash. Oxxo has early 18,000 stores across the country, where nearly 60% of the population lack bank accounts, posing an obstacle for online shopping. In 2017, Amazon in Mexico began accepting cash payments at several convenience stores chains, including 7-Eleven. The partnership with Oxxo, which already accepts cash for a number of online merchants such as Mercado Libre, will vastly expand Amazon´s reach. Under the service, called Amazon Cash, shoppers can deposit between US $5 to US $250 per transaction to their Amazon accounts online, with a daily limit of US $500. Amazon will reimburse an US $0.6 commission charged by Oxxo per transaction, the companies said. Both companies have been working together on a package pick-up program in some 3,000 stores, aimed at serving shoppers who live in areas where home delivery is complicated.   Source:https://www.reuters.com/places/mexico  
Franchise Industry
Exploring the Vietnam Market via TAITRA for Taiwanese Chain Brands
Vietnam’s booming economy has attracted many franchisers from the U.S., the UK, South Korea, Singapore, Thailand, Japan, Hong Kong, and Taiwan. As a prime destination for international brands, more and more Vietnamese potential franchisees are coming to Taiwan to participate in the “Taipei International Chain and Franchise Exhibition” held at Exhibition Hall 1, TWTC (Taipei World Trade Center) in spring and fall every year. These events showcase the growth of franchising industries in Taiwan today, inclusive of food and beverage, logistics & transportation, education, laundry, as well as beauty & cosmetics. With a large sum of foreign direct investment (FDI) targeting Southeast Asian nations, franchising business is gradually altering the lifestyle of the traditional Vietnamese consumer. For example, the increase of career women and inbound tourists has resulted in a wide variety and strong growth of Vietnamese restaurants in recent years. Fast-moving consumer goods (FMCG) such as meat, fruits and vegetables, dairy products, and baked goods now commonly appear in convenience stores and shopping marts. These types of food offer both safety and quality and give the public in Vietnam a choice between traditional and modern retail channels. Local conglomerates such as Vin Group and Saigon Trading Group (SATRA) have also developed their own product and procurement strategies in response to changes in the retail and franchise market. Taiwanese food suppliers like Dai Phat Food and Jia Da Food have entered Vietnam’s food and beverage market. For example, Jia Da Food’s brand product called “Baked Tea, Tra Rang Dajing in Vietnamese” was promoted at the 10th Vietnam International Retailtech & Franchise Show held by TAITRA in Ho Chi Minh City from November 1-3, 2018. In 2019, another Tra Rang Dajing will open in Tỉnh Bình Dương. Hot weather, a young population, and a rising middle class have all helped to create a favorable market environment for portable and convenient beverages and desserts in Vietnam. Taiwanese brands, such as Presotea, Meet Fresh, and Ten Ren Tea, have been continually expanding their operations via franchising in Vietnam. These Taiwanese brands’ drinks and desserts are all famous for their natural ingredients, high quality, and good taste. Because Vietnam’s franchise market is still new and developing, enormous business opportunities present strong growth potential yet regulation challenges at the same time. Retail and franchising industries in Vietnam are expected to be quite prosperous in the next five years, with international retail groups like AEON, LOTTE, and Circle K building up their retailing chains throughout the country. Although the Ministry of Industry and Trade has granted 206 franchising licenses for foreign brands in Vietnam since 2007, franchising businesses are still facing some tough issues to overcome. Many Vietnamese people are used to buying their necessities from traditional grocery stores. It takes time to change the shopping habits of citizens living in rural areas outside of the big cities and in the countryside. Potential franchisors that want to enter the Vietnam market still need strong local support and professional teams in finance and interpretation. Labor training and product quality are also the focus of consumers when discussing franchising brands on social media. Moreover, laws and regulations on intellectual property for brands must be made a lot clearer to local market competitors and shoppers. TAITRA actively provides overseas marketing assistance and platforms for Taiwanese franchising brands to explore business opportunities in overseas markets. Please visit the website http://events.taiwantrade.com.tw/ for more useful information.
Franchise Industry
Thailand CP Freshmart expands
Charoen Pokphand Foods Plc (CPF), the agro-industrial conglomerate, plans to expand the CP Freshmart network to drive business towards the food segment and digital transformation. As part of its commitment to the "Kitchen of the World" strategy, the company will use CP Freshmart, a retail chain with over 400 stores nationwide, to distribute fresh food and raw materials to the HoReCa (hotel, restaurant and catering) segment and retail customers, said Sooksunt Jiumjaiswanglerg, chief executive for agro-industrial business and co-president. Under the new structure, CP Freshmart will operate as a customer-centric store and hub for logistics, distributing and delivering fresh food to retail customers without shop fronts, Mr Sooksunt said. The company is also studying the possibility of building a food showroom consisting of restaurants and a food shopping area inside a space of 300-400 square metres, up from the existing 80-100 sq m of the CP Freshmart format, he said. "In the future, Freshmart will have appliances and kitchen equipment to serve customers," Mr Sooksunt said. "The future could be entirely in the online sphere. Fresh foods, goods and services could be delivered to customers at home without the need to walk to shops." To prepare for tech disruption, CP Freshmart will be connected to an online payment system furnished by True Corporation. Customers can use QR codes to make payments, among other methods. CPF's business has grown from animal feed production and expanded into animal breeding and farming, which include swine production and integrated shrimp supply, together with production of processed and ready-to-eat food. Feed production accounts for 42% of total revenue, while farming and food production make up 41% and 17%, respectively. "We plan to migrate from farm business to food, such as processed or frozen foods, as much as possible for price stability, which could have an impact on profitability," Mr Sooksunt said. The farm business is involved with commodities, while feed and food production are branding businesses where the company has a price-setting power and can guarantee customer satisfaction, he said. CPF has diversified its business portfolio with operations and investment in 17 countries, catering to over 4 billion people and exporting to more than 30 countries. Revenue from domestic business accounts for 33% of the total, comprising domestic sales (28%) and export sales (5%), while overseas revenue makes up 67%. Total revenue is targeted at 600 billion baht by 2022, with the portion of overseas business revenue projected to rise to 75% over the next five years. Sales revenue expanded by 8% year-on-year to 542 billion baht in 2018 from 502 billion in 2017, with a net profit of 15.5 billion. CPF shares closed on Thursday on the Stock Exchange of Thailand at 25.75 baht, up 0.98 satang, in trade worth 560 million baht.   Source:https://www.bangkokpost.com

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