Despite the pandemic, which has caused almost every sector to face huge and unwilled changes, the franchise sector continues to grow rapidly. The franchise sector was expected to reach 50 million dollar capacity in 2020. Despite every negativity, the impressive growth of Turkey’s franchise sector provides a great ecosystem for entrepreneurs, and acts as a milestone in the economy.
The Turkey’s franchise sector provides employment to more than 250,000 people and includes more than 10,000 entrepreneurs. It reached 43 million dollars turnover in 2019. This includes, 3,500 chain stores, 65,000 chain branches and 205 Turkish brands abroad. Thereby the franchise sector in Turkey is one of the most important elements for the country’s economy and for the representation of Turkish brands abroad.
As the numbers show, the franchise system is experienced and accepted over the years. Moreover, it provides countless advantages to investors and brand owners to reach a corporate level with their experiences. In addition, it also keeps the entrepreneurs’ motivation high and the cost minimum.
For instance, “Be My Franchise” which is a leading event in Turkey’s franchise sector, actively connects the Turkish franchise brands with international investors. Thus, making it a worthy contributor in the global franchise sector.
According to recent research, it is expected that the franchise sector will continue growing despite all the negativity and the current pandemic situation. This includes food, automotive, education, real estate, and many more sectors from Turkish franchising brands. However, what is certain is that, with the development of different sectors, the interest and the curiosity for the franchise system has also been increasing.
Food & Beverage business is the leading franchise sector in Turkey. On the other hand, the amenities that have been provided to foreign investors are keeping the real estate sector alive. Likewise, it has been observed that services that receive frequent demand such as car wash, maintain their stability. Since the pandemic obliges people to stay away from entertainment, the entertainment sector has been facing difficulties. But as per the experts after the normalization process, people will be back in entertainment and this may even lead to a 10% value increase in the entertainment sector.
The multi-national Anatolian brands’ next target is opening stores abroad. Meanwhile, the others who have been putting effort into online platforms have achieved their goals due to the high demand for online markets because of the pandemic. If we should make an embodiment, this centuries’ most discussed education model “edutainment” which means learning while having fun, could not have better timing to be launched.
With the recession of the economy, while cost-oriented brands are turning towards new strategies, it is necessary to evaluate possible demands carefully. The pandemic’s current effects on retail sales has compelled the brand owners to monitor the system accurately. However, having stores in well-located malls, which has constant visitor numbers, is still a popular idea for branding and increasing the store numbers. For the new establishments, it is necessary to keep their branding cost balanced. Similarly, entrepreneurs should enter the sector only after experts analyze the shopping tendency and potential demands.
In 2020, client experience and digitalization are important subjects for the brands who want to be in a good position in the market. In particular, the food & beverage industry should revise their online marketing strategies. From gastronomy to e-sport centers, many sectors jumped into an innovative era with digitalization. Most importantly, experts must manage the online sales strategies in order to meet the customers’ expectation and grow rapidly or as multinational brand.
Content was contributed from Selen Deniz – Proprietrix of Franchise Magazine Turkiye.
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