The United States is the number one country in the world in terms of the size of the franchise market. And the second largest? Japan.
But I must say that the second place is less global than South Korea and Canada, which are ranked lower than Japan. Why?
The answer will be given later, but there are commonalities in the categories in which the U.S. dominates the world economy. The world's reserve currency is still the U.S. dollar.
2，IT industryMicrosoft, Apple, Google, Facebook, etc. IT platforms used all over the world are still made in the USA.
3，Franchise industryMcDonald's, Subway, Starbucks, KFC, and most of the world's top 10 franchises in sales started in the USA.
What do these industries have in common? It is the perspective that Japan should aim for in the future.
They are "knowledge industries. They are converting knowledge into money.
Franchising is a typical example. It means converting know-how into money. Japan's franchise industry, the second largest in the world, has not expanded globally.
The size of the convenience store market contributes in many areas in Japan, but it is still the world's second largest market. Such is the Japanese franchise industry.
It is not accustomed to turning knowledge into money.
They will pay for something tangible, but not for something intangible.
Japan is a typical example. There is a culture of not paying for information and know-how. If we do not get used to converting knowledge into money, we will not be able to compete in the world.
There are now McDonald's restaurants all over the world (about 40,000 worldwide). The annual franchise fees and royalties - revenue of this corporate enterprise is a whopping 1.3 trillion yen (2019).
Likewise, KFC Group 230 billion yen (40,000 stores in the KFC group) This is the attraction of the franchise headquarters. So much stock income comes in every year.
Starbucks does the same, of course.
I think Japanese franchises should go out more, earn foreign currency, and contribute to the revival of the Japanese economy.
Both South Korea and Singapore are making a concerted effort to sell their franchise businesses overseas.
I am working with KOTRA of Korea and IE Singapore of Singapore, both of which are worthy of Japan's JETRO, and they are seriously trying to expand their own franchises overseas.
Similarly, Thailand's government has announced. They said that it is the franchises that should be supported. →http://www.bangkokshuho.com/article_detail.php?id=6414知識をお金に変える価値 and they are serious because they know what it is all about.
The franchise industry in Japan needs to go out and out, more and more!
Let's not rely on industry support groups, but go out on our own! The Japanese franchise business should aim for the world!
Akira Tsuchiya, Assentia Holdings Pte.
アセンティア・ホールディングスのフランチャイズについての考え方
フランチャイズビジネスの意義と価値 https://www.assentia-hd.com/newproject/why/