Advertise with fastmoving.co.za
 
 

Morne Cronje, Head of Franchising at FNB Business.
Morne Cronje, Head of Franchising at FNB Business.

Three franchising trends to look out for in 2019

MARKETING NEWS

FNB - Jan 29th, 10:03

A recent survey conducted by the Franchise Association of South Africa (FASA) revealed that the franchising industry has grown from contributing 13,3 percent to the South African Gross Domestic Product (GDP) in 2017 to its current figure of 15,7 percent despite the tough economic climate and its impact on franchises. 

Morne Cronje, Head of Franchising at FNB Business said, franchising is a tested business model that should be considered as a treasure trove in creating jobs and social impact for people in South Africa, amongst other things.

The recent FNB Franchise Leadership Summit unpacked key trends to look out for in 2019:

Convergence of offline and online businesses:

Online businesses are moving into the offline market while offline businesses into the online world.

Speaking at the FNB Franchise Leadership Summit, Andy Higgins, founder of bidorbuy.co.za is of the view that, it is not about online or offline, but a blurring of the lines.

Three typical scenarios are such as consumers go into a store to get advice and feel the product and make an online order, or they do research online and make the purchase in store; or a consumer does online research, orders it online and then makes an arrangement to pick it up in person.

Simply put, franchise owners need to incorporate all these channels to reach their customers.

More franchises using social media:

It is no longer a question of whether a business should be on social media or not, it is now more about going where your customers are and meeting their needs and expectations.

Social media is a good marketing tool for storytelling and building the persona of the business in an age of technology, thereby promoting the human interaction element. For example, RocoMamas has grown their brand using social media.

Social franchising: More businesses are now focusing on their social impact and for some, it is their reason for existence.

For these businesses, social franchising offers a mechanism to deliver impact at scale within a framework of operational standards prescribed by a social franchise business model. Social franchising is much needed in South Africa and it can promote the delivery of impactful services from education to healthcare, amongst other sectors.

“South Africa is going through a tough economic period and consumers are feeling the pinch, thus cutting back on spending. However, franchising continues to show growth in this testing environment and we expect it to grow on the same trajectory in 2019 and beyond,” said Cronje.
IOL 

Read more about: franchising | fnb | fasa | business

Related News

Is Woolworths unravelling in Australia?
15/02/2019 - 16:35
The sudden departure of two Australia-based nonexecutive directors of Woolworths has fuelled speculation that the troubled retailer will be forced to announce another huge write-down related to the R21bn acquisition of the David Jones department store.

Booze, drugs and DIY boost Spar in difficult economy
13/02/2019 - 15:40
Robust liquor sales and the inclusion of the pharmaceutical distribution business it bought in 2018 year boosted grocery retailer Spar Group in the weeks leading up to Christmas.

Pick n Pay trials a R5 reusable bag – made from green plastic bottles
13/02/2019 - 13:38
Pick n Pay is trialling the lowest priced reusable bag yet in South Africa, as an affordable reusable alternative to plastic carrier bags.

IoT offers fast, effective control of every business resource
12/02/2019 - 22:51
Internet of Things (IoT) continues to make inroads into South African industries, and it is not difficult to see why. The fact is that with IoT, businesses will always know where everything is, they will be able to keep track of even more data, everything will be faster and remote work will be even more feasible. Another fact is that challenges associated with this technology, like security, connectivity and a sound business plan, are largely being addressed.

Toys R Us makes a comeback as Tru Kids Brands
12/02/2019 - 19:17
Toys R Us is making a comeback as a brand new company known as Tru Kids Brands, one year after the toy retailer went bust.