SPEECH BY MR S ISWARAN MINISTER OF STATE FOR TRADE AND INDUSTRY
AT THE FRANCHISING AND LICENSING ASSOCIATION (FLA) AWARD 2007 GALA DINNER ON FRIDAY, 21 SEPTEMBER 2007, 7.30 PM AT THE PACIFIC BALLROOM, PAN PACIFIC HOTEL
AT THE FRANCHISING AND LICENSING ASSOCIATION (FLA) AWARD 2007 GALA DINNER ON FRIDAY, 21 SEPTEMBER 2007, 7.30 PM AT THE PACIFIC BALLROOM, PAN PACIFIC HOTEL
Mr Douglas Foo, Chairman of the Franchising and Licensing Association (Singapore)
Distinguished guests, Ladies and gentlemen,
Introduction
1.Good evening. I am happy to join you tonight at the Franchising and Licensing Association Awards Gala Dinner. Organised by the Franchising & Licensing Association (FLA) of Singapore, the International Franchising Award 2007 features the best of the franchising industry from companies all over the world, including Singapore. It has gained in prominence and is highly regarded by the local and international franchise communities.
2.I understand that three awards will be presented to the franchising fraternity this evening. The most outstanding franchisor award and the most promising franchisor award to our winning homegrown franchisors; and the most outstanding international franchisor award to the winning nomination from overseas and Singapore. The international franchisor award is into its second year, and I am told that the response received from the international nominees has been encouraging.
3.Winning such an award is a fitting accolade for the accomplishments of these companies. But it also marks the beginning of a new phase in their corporate evolution. For example, last year’s most outstanding franchisor award winner Blush! has made further progress by expanding its business into the region. Blush! has since opened eight new outlets in Malaysia, Indonesia, Dubai and a new store at The Venetian Macao. The added confidence derived from winning the award has enabled Blush! to set its sights now on the China market and, eventually, to possibly grow even beyond our region to penetrate the global market.
4.Prima Taste Restaurant is yet another success story. Since winning the promising franchisor award last year, the restaurant has opened 12 outlets in more than 10 cities. The company has set itself the bold target of establishing 100 Prima Taste restaurants globally within the next five years. The achievements of last year’s international award winner, Gloria Jean’s Coffee, are also noteworthy. The company has since opened 125 new stores worldwide, which works out to an average of one new outlet every three days!
A Strong Franchise is Built around Strong Brands
5.These three successful companies share a common key ingredient, which is a strong, consistent brand which allows them to entrench their presence in diverse markets, as well as gain and maintain mindshare amongst existing and potential customers. This builds customer loyalty, attracts potential franchisees and allows the franchise to distinguish itself from its competitors. Strong franchise brands take time to build and require careful nurturing. But once established, they enhance the scalability of the business model and provide long-lasting returns in terms of market leadership and profitability.
6.A strong brand also enjoys high brand integrity. When a franchise brand is marketed and delivered consistently, the customers will have a keen appreciation of the brand’s identity and the nature and quality of the services the franchise provides. This reinforces the value of the brand, allowing the franchise to offer a uniform, focused and compelling value proposition to its audiences.
Growth of the Franchising Industry
7.Indeed, many companies are increasingly turning to franchising as a platform for growth. The franchising industry in Asia is certainly taking off. According to Academy Asia Pacific, the annual revenue from Asia’s franchise markets is growing by more than US$50 billion each year and is expected to hit US$100 billion in five years’ time. This rapid growth reflects the untapped potential of the large and relatively undeveloped franchise markets in the region.
8.Singapore is an integral part of this growth story. The number of franchise companies in Singapore has quadrupled over the past ten years, from 85 in 1995, to more than 380 in 2004, and it continues to grow at a steady rate.
9.Various forms of government assistance are also available to companies interested in building up a strong brand for their franchise. In particular, companies can apply for Brand Pact, a programme jointly administered by IE Singapore and SPRING Singapore, to help companies embark on their branding journey. I strongly urge all who companies interested in adopting franchising as a business strategy, to apply for this programme.
Conclusion
10.Given the market potential of the region, and the efforts of FLA and government agencies, I am confident that the franchising industry in Singapore will continue to flourish and grow in the years to come. In particular, I would like to commend FLA Singapore for organizing tonight’s Awards and I congratulate all the finalists on their achievements. I wish all of you much success in your journey to build your franchise and extend the reach of your brand into the region and beyond. Thank you.
1.Good evening. I am happy to join you tonight at the Franchising and Licensing Association Awards Gala Dinner. Organised by the Franchising & Licensing Association (FLA) of Singapore, the International Franchising Award 2007 features the best of the franchising industry from companies all over the world, including Singapore. It has gained in prominence and is highly regarded by the local and international franchise communities.
2.I understand that three awards will be presented to the franchising fraternity this evening. The most outstanding franchisor award and the most promising franchisor award to our winning homegrown franchisors; and the most outstanding international franchisor award to the winning nomination from overseas and Singapore. The international franchisor award is into its second year, and I am told that the response received from the international nominees has been encouraging.
3.Winning such an award is a fitting accolade for the accomplishments of these companies. But it also marks the beginning of a new phase in their corporate evolution. For example, last year’s most outstanding franchisor award winner Blush! has made further progress by expanding its business into the region. Blush! has since opened eight new outlets in Malaysia, Indonesia, Dubai and a new store at The Venetian Macao. The added confidence derived from winning the award has enabled Blush! to set its sights now on the China market and, eventually, to possibly grow even beyond our region to penetrate the global market.
4.Prima Taste Restaurant is yet another success story. Since winning the promising franchisor award last year, the restaurant has opened 12 outlets in more than 10 cities. The company has set itself the bold target of establishing 100 Prima Taste restaurants globally within the next five years. The achievements of last year’s international award winner, Gloria Jean’s Coffee, are also noteworthy. The company has since opened 125 new stores worldwide, which works out to an average of one new outlet every three days!
A Strong Franchise is Built around Strong Brands
5.These three successful companies share a common key ingredient, which is a strong, consistent brand which allows them to entrench their presence in diverse markets, as well as gain and maintain mindshare amongst existing and potential customers. This builds customer loyalty, attracts potential franchisees and allows the franchise to distinguish itself from its competitors. Strong franchise brands take time to build and require careful nurturing. But once established, they enhance the scalability of the business model and provide long-lasting returns in terms of market leadership and profitability.
6.A strong brand also enjoys high brand integrity. When a franchise brand is marketed and delivered consistently, the customers will have a keen appreciation of the brand’s identity and the nature and quality of the services the franchise provides. This reinforces the value of the brand, allowing the franchise to offer a uniform, focused and compelling value proposition to its audiences.
Growth of the Franchising Industry
7.Indeed, many companies are increasingly turning to franchising as a platform for growth. The franchising industry in Asia is certainly taking off. According to Academy Asia Pacific, the annual revenue from Asia’s franchise markets is growing by more than US$50 billion each year and is expected to hit US$100 billion in five years’ time. This rapid growth reflects the untapped potential of the large and relatively undeveloped franchise markets in the region.
8.Singapore is an integral part of this growth story. The number of franchise companies in Singapore has quadrupled over the past ten years, from 85 in 1995, to more than 380 in 2004, and it continues to grow at a steady rate.
9.Various forms of government assistance are also available to companies interested in building up a strong brand for their franchise. In particular, companies can apply for Brand Pact, a programme jointly administered by IE Singapore and SPRING Singapore, to help companies embark on their branding journey. I strongly urge all who companies interested in adopting franchising as a business strategy, to apply for this programme.
Conclusion
10.Given the market potential of the region, and the efforts of FLA and government agencies, I am confident that the franchising industry in Singapore will continue to flourish and grow in the years to come. In particular, I would like to commend FLA Singapore for organizing tonight’s Awards and I congratulate all the finalists on their achievements. I wish all of you much success in your journey to build your franchise and extend the reach of your brand into the region and beyond. Thank you.