untitled design

Franchising market keeps growing during the pandemic

The franchising market has shown resilience in the pandemic and already has better prospects, as shown by data from the Brazilian Franchising Association (ABF).

In the last 12 months, the research shows that the franchise sector presented a positive variation of 8.4% in its revenue, with an increase of BRL 168.177 billion to BRL 182.381 billion – close to the BRL 182.657 billion registered in the same period in 2019. The sector also totaled 1,388,560 direct workers in the months of July, August and September this year.

According to ABF, the movement is linked to the gradual resumption of economic activity and social life, with consumers resuming habits even in areas such as food away from home and tourism.

The segment with the greatest variation in the 3rd quarter was Tourism and Hospitality, with a recovery of 53.1%. The resumption of travel is the main driver, given the large pent-up demand and considerable changes characterized by instability caused by restrictions imposed by the pandemic last year.

Then come Home and Construction; and Health, Beauty and Well-Being with growth of 10.8% and 9.1% respectively. In the last 12 months, in the period from October 2020 to September 2021, Home and Construction accumulated a positive variation of 26 ,two%.

Food away from home – Food Service – which played a significant role with delivery, presented an increase of 7.9% and Fashion 7.25%, also in the 3rd quarter. Both segments benefited from the increased movement in the malls and the resumption of social interaction.

The president of the ABF, André Friedheim, attributes the evolution of sales to the economic recovery, with the advance of vaccination and the end of restrictions. On the other hand, investors and professionals have been looking for investment and occupation options.

“The sector generated more than 120 thousand direct jobs, showing the importance of franchises in this area, mainly for young people. With easier access to credit, less bureaucracy and a more balanced tax system, I am sure that the sector could generate even more vacancies, having an even greater weight in the recovery of the economy”, emphasizes Friedheim.

Unlike a few years ago, the sector is realizing the unprecedented interest of young people to undertake. The president of ABF Rio, Beto Filho, explains that, in addition to the fact that this generation is more open to entrepreneurship as a career option, indicators even point to greater difficulty in getting into the job market. The demand for people under 30 is in almost the entire franchising market.

“In recent years, many digital franchises have emerged, in the geek, entertainment and even food market, with themed cafeterias and/or partnerships with famous characters, who have a great fit with this audience”, he highlighted.

Expo Franchising ABF resumes trade show

To mark the face-to-face return with an emphasis on the business hall, Rio de Janeiro will host the Expo Franchising ABF, from this Thursday (11) until November 13th, at the SulAmérica Convention Center, in the city center.

About 200 brands will propose opportunities for entrepreneurs with an initial investment ranging from R$4,000 to a little over R$2 million. The organization’s expectation is to generate R$ 100 million in business and receive 22 thousand visitors.

Among the new brands in this edition are Love Gifts, My Cookies, Prudential do Brasil, Le BonTon, Clínica da Cidade, Cleaning with Zelo, Mané, among others. Veteran franchises also present their news, such as Billy The Grill, iGUi, Maple Bear, Spoleto, Espetto Carioca and Yes! Languages ​​course.

Founded in 2016, in Campo Grande (MS), the American-style biscuit brand, MyCookies, restructured itself and achieved results during the pandemic.

During this period, it jumped from 25 to 70 units in nine states, perfected packaging, renewed delivery logistics, invested in the launch of exclusive products and inaugurated a new factory with greater production capacity to keep up with the pace of openings.

The CEO and founder, Natalie Pavan, believes that the time is ripe to continue the expansion of the brand, which began with the sale of cookies made by her own recipe at school doors.

“We bet a lot on delivery and it worked. We make the entire menu available for delivery. We created special sales and packaging actions so that the cookies arrived warm, without losing their texture and always prepared with great care and love”.

In addition, the entrepreneur highlights the bet on the Rio de Janeiro market. Rio de Janeiro is fundamental to our expansion project, as it is a state that we have not yet entered and we see as very promising, especially the capital. In this sense, Expo Franchising ABF Rio will be a great opportunity to generate business and local partnerships”, comments Natalie.

On the other hand, CVC, one of the largest travel operators in the country, present in more than 600 cities, with more than 1,200 stores, will take the opportunity to present its new brand, in a digital and sustainable format, which comes with a new concept of Shops. Anyone visiting the stand during the fair will be able to see a replica of the concept store, recently opened in São Paulo.

“Rio de Janeiro is an extremely important market for the company – it is among the top 5 packages issuing markets and has more than 140 CVC stores”, announces Daniela Bertoldo, director of B2c Business at CVC Corp. “Our expansion plan in the region, which starts in 2021, is expected to open 35 new stores in the next 24 months.”

CVC will bring to the fair new products and promotions that are part of the Black Friday campaign and are already on the air. The operator also highlights that the city is one of the most sought after destinations during the holiday season, and should have a strong summer season for the joy of all the tourist industry.

Reference: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular