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Hapinoy: The Microfinanced Franchise Model
Sari-sari stores are make-shift local community convenience stores that serve the vast underprivileged majority of the Philippines. There are about 650,000 of them scattered around the nation and virtually all of them are individually owned. For years, ambitious local entrepreneurs have dreamed of consolidating this massive retail category. A bunch of them dreamed with a social conscience and are now finding success with a venture called Hapinoy.

Hapinoy seeks to become a “preferred business partner of the poor” by partnering with local microfinance institutions to provide women borrowers with top credit scores a Hapinoy sari-sari store franchise. Hapinoy provides value by serving as a retail consultant, brand marketer and merchandise consolidator (it deals with manufacturers directly). The company makes money by getting a percentage off the merchandise, which ties its long-term interests with each individual store’s sales growth and inventory turnover. Because of the network effect and economy of scale achieved by being under one Hapinoy brand, store owners still end up with higher margins compared with traditional unbranded sari-sari store owners.
Malaysia seeks trade ventures
MANILA, Philippines--Philippine and Malaysian retail outlets are expected to be put up in the major cities of the two countries as a result of the efforts of a Malaysian mission.

The 20-member mission, led by Malaysian Entrepreneur and Economic Development (MECD) Minister Yang Berhormat Dato Noh Bin Omar, is pursuing joint franchise ventures as a way of strengthening diplomatic and economic ties between the two countries.

The MECD has put up a Malaysia Pavilion at the 3-day Franchise Expo 2008 going on at the SMX Convention Center in Pasay City, with Omar and Trade Secretary Peter Favila doing the opening honors.

The exhibits of franchise brands may be viewed at the expo up to early evening Sunday.
DBCC asked to review declining ratios to GDP
Government budget and finance officials’ initial figures show that the ratios of revenues and expenditures vis-à-vis gross domestic product (GDP) are on the decline for 2008 and 2009.

This is why Finance Secretary Margarito B. Teves, who in a meeting with the inter-agency Development Budget Coordinating Committee (DBCC) on Monday, asked officials to again review the numbers. Based on emerging figures, the government will be collecting higher revenues for the year to plug a portion of the budget deficit.
JFC eyes 10,000 stores abroad by 2020
Jollibee Foods Corp., the country’s number one homegrown fastfood chain, is eyeing the establishment of 10,000 stores globally including its acquired other brands by 2020 largely through franchising.

Ernesto Tanmantiong, president of the publicly-listed JFC, revealed this in a keynote speech at the 16th Philippine International Franchise Conference saying this target supports the company’s vision to become the largest food company in the world.

"We will be as well known as any other brand in the world, the best quick service restaurant and the most endearing brand that has even been," Tanmantiong said.
Franchising now accounts for 5% of Philippine GDP — study
The franchising sector has contributed an estimated P106.75 billion to the nation’s economy translating to 5 percent of the country’s total gross domestic product for the years 2005 to 2007, a study revealed.

Results of a study conducted by the Philippine Franchise Association (PFA) with the University of the Asia and the Pacific (UA&P) were divulged at yesterday’s opening of the 16th Philippine International Franchise Conference and Expo (PIFCE).

Since its introduction in the Philippines in the 80’s, franchising has experienced phenomenal growth, proving itself as a resilient and adaptable business strategy, the study said.
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