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Spanish franchise chains seek new international destinations

Spanish franchise chains seek new international destinations

Published in El Economista , 17 - June , 2016 abogados franquicias Franchises of Spain

Spanish franchises have given a new sign of their expansionist zeal outside our country to expand in 2015 its presence in international markets. In the last year, a total of 302 of the 1,014 chains operating in Spain with national flag tried their luck outside our borders, representing 2.03% more than in the previous year.

Although that expansion continues to hold in the markets that traditionally has been directed especially our neighbors in the European Union franchise business system starts to sink and settle elsewhere in destinations where until now craved more difficult for economic reasons or political or cultural estrangement that our brands had not known or wanted to save.
Among these new destinations are some that are not so much, but at the time failed to attract the Spanish franchises, such as Argentina or Peru. In the case of the southern country, the change of government -after the end of the mandate of Cristina Fernandez de Kirchner and the coming to power of Mauricio Macri seems to be opening the doors to a new wave arrival for our brands. "It is likely that the change of government brings with it a greater opening of the Argentine market, so we must be aware of our possibilities," says Xavier Vallhonrat, president of the Spanish Association of Franchisers (AEF).
Peru, meanwhile, is also a country that had pull for our brands earlier this decade and then stopped. A brake that seems to have desencallado, as the country is showing signs of wanting to be a land of welcome for our signs.
The Cuban challenge
In the Americas, the other country that is postulated to be the receiver of our franchises is Cuba -in the October 2015 journal analyzed the options for the Spanish franchise business in the caribeña- island. A country in which, they argue from the AEF,
"Spain is missing an opportunity" to have a caretaker government for months and "we are watching the presidents of other countries will, while we are not going". "Cuba is a market that despite being small gives us opportunities" qualifies Vallhonrat.

The president of the AEF argues that Spanish franchises also have options of development in some countries of the Middle East and Southeast Asia. In that list, highlight Iran. The reasons are several: a public debt of 2%, an upper class that begins to emerge and a country with few shopping centers, at the moment, where our brands could open a gap. Along with Iran Qatar it stands where Spanish firms being installed with success as the chain Pressto dry cleaners; Vietnam, where the Spanish concepts enjoy good acceptance, or UAE. In fact, this country is already in the ranking of the 10 countries with the largest number of Spanish franchisors networks in the world.
A ranking below cornered by members of the European Union and that in the last year, has left Venezuela. Why? The situation of political and economic instability.
In addition to the above, the report The Spanish franchise in the world, produced by the AEF in collaboration with Cajamar, reveals that the United States, Japan, Singapore, South Korea and China are markets where Spanish chains have potential to grow. In fact, Vallhonrat estimated that the Spanish presence in China, where it has 1,115 establishments operating our franchise, "remains a drop of water" in relation to what could be, given the geographical size and population. "As an exporter system are still starting to grow," qualifies the president of the Association.
Despite having a long road ahead, the Spanish franchises have improved their presence outside our country in the last year, to reach a total of 137 markets -five more than about a year ago. And not only in the number of networks present abroad, but also in terms of number of establishments, with 1,017 more more-than-a 5.12% at the end of 2014. Today, the Spanish franchise system It has a total of 20,891 locations worldwide.
By sector, the situation, however, remains very stable. Fashion is king thanks to the pull of firms such as Mango or Zara- and it follow, as in previous years, the segment of the hospitality, beauty, aesthetics, dietary -mainly by the international expansion of Naturhouse - food and thanks to the international presence of the supermarket chain Dia-.
In a more detailed analysis of the Association document it indicates that the fashion industry has 75 networks established abroad; the hospitality, 46 and beauty, 35. However, local data classification change except in the first place. As the number of operating establishments, fashion is the one that has by far: a total of 9,428 stores in 121 markets. Then the food segment is, with 2,796 local operating outside Spain; the dietary and pharmacy, with 1,808 local despite having only three franchisers networks outside Spain; the aesthetics, with 1,442 establishments and restoration, with 1,374.
Regardless of whether the analysis is network or local, the report also states that most of our franchises are operating in the European Union, growing even in countries like Italy or France, where there is high competition for our concepts.

Las cadenas de franquicias españolas buscan nuevos destinos internacionales

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