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How revolutionary franchising strategy could transform the SA economy

Apr 17th, 08:14

How revolutionary franchising strategy could transform the SA economy
Compiled by Traditional Brands

Stability, traceability and consistent representation – three vital areas of consideration for anybody looking to invest in a potential development. Significantly, these are also facets of business that a well-established franchising industry is able to offer local and international investors. While this has not traditionally been perceived as a particularly strong area of the local economy, Nicolas De Sousa, marketing and operations director at Traditional Brands, believes that local entrepreneurs have the ability to revolutionise the South African franchising industry and in so strengthen the economy.

De Sousa explains that the local franchising industry is a somewhat rough terrain with considerable room for improvement. “South Africa has great potential but there are still a number of areas which require significant attention. One of the greatest challenges is the current lack of industry regulation. “Anyone is able to franchise their brand in this country without having to comply with legislation, this being a situation which does not encourage expertise, originality or standards.”

On the other hand, larger economies which boast players such as Walmart contributes around $450 billion in GDP, this demonstrates a far greater economic understanding of how a successful franchising industry should be run. “The greater GDP’s of the world are defined by business principles and innovation, not replication,” De Sousa comments.

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