Accelerate Your Brand Growth
Internationalization and expansion of businesses have been accelerating, facilitated by modern business process management technologies and infrastructures. However, many of the motivations for it are reactive ones; competitive pressures in current market, declining sales and the proximity to customers or ports. Seldom do businesses explore beyond their domestic markets, unwilling to leave their comfort zones to take on opportunities. The pride and quality of local, or Made in Singapore products and services are not proactively established outside the country. This is one of the things Astreem is passionate about; to put more local brands and businesses on the world stage. Astreem works closely with Brand owners to develop Brand growth strategies. These growth strategies include pre-entry Market Research, Brand Localisation, Franchise strategy development, Joint venture partnership and business brokering.
As a Made in Singapore Brand, there are also many avenues of assistance the government provides through Enterprise Singapore (ESG) and their Enterprise Development grants (EDG). When appropriate, Astreem works with our clients to identify the government grants that can assist their business growth strategies into the region.
Below are some highlights about some territories Singapore Brands can consider when building the Growth Strategies:
The Jokowi government forecasts that Indonesia’s economy will only grow by 5.3% in 2019. This prediction, which was set in the 2019 State Budget, is lower than that of the 2018 State Budget of 5.4% but still higher than the World Bänk’s forecast of 5.2%. The Indonesian economy will grow at a robust pace in both 2018 and 2019 on the back of strengthening exports and investment. Exports are projected to rise amid the improving global economy, while investment is seen rising on the back of domestic infrastructure projects and Indonesia’s improving investment climate. Meanwhile, household consumption and government spending are estimated to remain stable.
Of great significance is the digital economy growth in 2019, riding on a momentum of bombastic growth projections, investor confidence and government support.
A Google-Temasek report released in November estimated that the size of Indonesia’s digital economy could triple from US$27 billion this year to $100 billion by 2025 – equal to annual growth of about $10.4 billion.
A McKinsey & Company report released in December predicts that Indonesia’s e-commerce sector alone may grow at least sevenfold from $8 billion last year to $55 billion by 2022. The embracing of Social media impacts the consumer behaviour dramatically fuelling growth in local consumption in many retail and service areas.
Foreign investments for Myanmar have soared since 2015 to more than $8 billion, reflecting the growing interests in one of Asia’s last remaining untapped market. This figure is owed mainly to the increased spending in the telecoms, energy, and real estate industries. Tax incentives and export tariffs has been offered to attract more FDIs and create urgently needed jobs for Myanmar’s growing population. Singapore is the second largest investor in Myanmar, accounting for 18.78% of the country’s FDI permit so far. Enterprise Singapore has also reported a 41.5% increase in investments in recent years. Myanmar is on the verge of middle class population explosion and Singapore firms are taking aim at this with upmarket services and posh condominiums. Myanmar’s highly fragmented retail sector, 90% of which are family businesses, fueled by rising middle class consumers, led to a huge demand for international brands and services. There is now a race to become one of the first movers to Myanmar’s growing economy and market where sectors face minimal competitions. Every year is becoming more crucial than the last.
Philippines has helped built franchise empires. With established and matured franchise laws, Philippines is the right destination to grow your business through franchising. With GIC (Singapore Sovereign Wealth Fund) also investing in franchising chain in Philippines, this shows recognition and confidence of Philippines’ market capability.
Philippines enjoys a strong local consumption that has help the local economy grow, and the Food and Beverage sectors are enjoying sustainable growth through the years. With demand for international brands increasing, Singapore brands have a higher chance of success in Philippines Market due to the favorable reputation “Made in Singapore” tags attract.
Philippines is also a great market for brands who wish to grow via franchising as this is a market that is familiar with franchising and have strong faith in the franchise structure.
The growth rates for China is predicted to remain positive though its unlikely to be as lucrative as the double-digit growth enjoyed in the previous decades as the economy transforms from its current low-end manufacturing-led one to one, led by higher-end manufacturing and services. This transformation will continue to fuel China’s growth rates and provide many business opportunities for Singapore companies wanting to do business in China. China’s economy is shifting from an investment-driven growth model to one that is consumption-led. Rapid urbanisation and growth of its middle class are factors that continues to boost domestic demand. According to UN estimates, by 2030, China should have approximately 1.4 billion middle class consumers compared to 365 million in the U.S. and 414 million in Western Europe. As of 2012, the estimated size of the Chinese middle class is already 474 million.
Customized Plan of Growth
We understand that companies would want a customized growth plan to grow to match their business strategies. Astreem will work closely with companies to develop a customized growth plan and define target markets to grow. If you simply want an avenue to expose your brands more, consider giving your brand more exposure at topfranchiseasia.com/
If you plan to reach out to Indonesia, Myanmar, Philippines or China this year, call us at 6742 0803 or email us on [email protected].