Global Business Development
The Fastest 2 Minutes in International Business
Posted on Jul 28th, 2015 in Predictions and Trends | Comments Off on The Fastest 2 Minutes in International Business
For 2015, EGS’ U.S. clients are seeking licensees in over 20 countries. Our GlobalTeam™ of highly experienced international project managers on the ground in 35 countries contributed to the following brief summary of the world mid-2015:
| Asia | China Japan Malaysia Mongolia The Philippines Thailand Viet Nam |
Citizens: you didn’t really lose money in the Shanghai market. Large corporations are investing in new consumer projects. Prime Minister didn’t really put US$1B in his bank account. U.S. pizza and coffee franchises flourishing. Seriously. Subic Bay is operating again, U.S. Embassy doubling in size. Stable politics. Military dictatorships often are stable. U.S. sailors on shore leave, 6%+ GDP growth. |
| Americas | Argentina Brazil Canada Chile Colombia Mexico Peru USA |
You still get paid in soybeans, if at all. Economy is stalled, inflation climbing, corruption rife. Tim Horton’s and Burger King are now one??? New President negative on business. Investment stopped. Still ‘show me the money and where it came from.’ Mexico City, Monterrey and Cancun booming. Lima is a city of cranes and new foreign F&B brands. US$15/hour minimum wage means no margins, less jobs. |
| Europe | Ireland Germany Poland Russia Spain Turkey United Kingdom |
GDP growth of 3% in 2015, high for the EU. Difficult to find investors/risk takers for new foreign brands. 3.4% GDP growth for 2015 is the highest in the EU. Foreign brands with US$ denominated rents are closed GDP growth for 2015 of 2.9%. Major 2016 comeback. Finally realized they should shoot at ISIS. 2.4% GDP growth, but normal investment analysis paralysis. |
| Middle East | Egypt Saudi Arabia UAE |
Pent-up consumer demand, scary security and future. Challenges to get new businesses open due to regulations. New building push, large expat influx, airport & airline soaring. |
| Elsewhere | Australia India South Africa |
Economy soaring but tied to commodity exports. Jobs iffy? Not another country, another universe. Low growth, high unemployment (26%), low new investment |
Updated: July 27, 2015
The Fastest 2 Minutes in International Franchising
Posted on Aug 13th, 2014 in Predictions and Trends | Comments Off on The Fastest 2 Minutes in International Franchising
In 2014, EGS’ US franchisor clients are very busy finding licensees in over 25 countries. Our GlobalTeam™ of highly experienced international development project managers contributed to the following brief summary of the franchising environment around the world.
| Asia | China | Food quality stinks; new F&B franchises shrink |
| Japan | New, large scale US F&B investment | |
| Malaysia | Government barriers for foreign franchises | |
| The Philippines | New professional companies seeking US brands | |
| Thailand | What coup? New franchise investment by major groups | |
| Viet Nam | Just bring coffee brands | |
| Americas | Argentina | You get paid in soybeans |
| Brazil | 95% local franchisors, government barriers to entry | |
| Canada | True regional development beginning | |
| Chile | Perfect market, except for the lack of people | |
| Colombia | Show me the money and where it came from | |
| Mexico | Selected areas booming | |
| Peru | GDP/capita growth and resulting investment wonderful | |
| USA | Franchise model in the birthplace of franchising in peril | |
| Europe | Czech Republic | Small market, but a perfect European brand showplace |
| Ireland | Investors not quite back to investing | |
| Germany | English not spoken and ‘We already have it’ | |
| Poland | Good franchise growth outside Warsaw | |
| Russia | Really? Now? | |
| Spain | Fast recovery, many investors seeking brands | |
| Turkey | US F&B booming, despite tin pot ruler | |
| United Kingdom | Analysis paralysis. Build a pilot first, then investors | |
| Middle East | Egypt | Next year, really… |
| Saudi Arabia | New F&B brands entering. Permits to open units??? | |
| UAE | Abu Dhabi and ‘More fast food, please’ | |
| Others | Australia | 90%+ local, locals like local brands |
| India | Separate universe | |
| New Zealand | The opposite of Australia, but few consumers | |
| Nigeria | Really??? | |
| Pakistan | Not Karachi | |
| South Africa | 90%+ local franchises to date, but a change is coming |
