The goal of international franchising is to achieve worldwide expansion. Speaking at SBM ITB discussion, Nilamsari Sahadewa, the founder and director of business development at Baba Rafi, said franchising could be a wise strategy to increase long-term and future income.
According to Nilamsari, franchising and licensing is one approach to entering the international market. Baba Rafi has developed its market internationally through this strategy.
International franchising is conceptually about permitting foreign business owners to open a franchise. However, the initial phase of starting an international franchise can be challenging and requires some strategy.
Before we can develop a business, said Nilamsari, designing products relevant to the market and choosing segmentation are the two most important stages to do. We must first measure its potential by developing a successful business model at the local level.
The local market must be stable and ready for global expansion. We also need to form an international team or division to manage the international business. Then, deploy a research team to identify local differences in cultural and behavioral aspects to improve the target market approach.
Furthermore, to make the franchise more attractive in the global eye said Nilam, we can use several strategies, such as taking part in franchise exhibitions, Instagram and Google ads, and sponsored promotions. In the era of digitalization, businesses also need to be globally active on social media, thus these channels can be used to highlight the advantages of our franchise and attract potential buyers.