Franchises exploit new markets and advance through the North and Northeast

Given the slowness of the economic upturn and increasing competition in the large retail centers, the Brazilian franchises have sought more and more space in markets outside of the South and Southeast. As a result of this movement, in the second quarter of this year, the financial contribution of the States of the North, Midwest and Northeast grew within the franchise industry. The data, which are part of the quarterly survey conducted by the Brazilian Franchising Association (ABF), point out that, between the second quarter of 2018 and the same period last year, the Southeast region had fall of 0.7 percentage points (p.p.) – reaching 54.4% participation in industry revenue. On the same mat, the South saw your piece back down in 0.1 p.p. in the analysis period, reaching about 10.1%. Against the grain, the northeast (15.4%), Midwest (8.3%) and North (5.4%) saw your percentage of growth moving forward (see more on chart). " As well as the increase of the sales networks in other States, the motion of internalization of these business units, out of the Southeast, is also part of the trend of expansion of franchises across the country, "said the President of ABF, Altino Cristofoletti. According to him, the marks will follow by expanding into the interior of Brazil, aiming at new business formats and best installment and conditions promotions for the public in these regions. In the second quarter of this year, the total turnover of the sector has advanced 8.4%, reached R $40 billion. When the result of the first half, the increase was 6.8% with R drive $79 billion. Highlights to this advance, the President of ABF underscores leisure and entertainment stores (16.1%), hotels and tourism (14.6%), and construction (11.3%) House. According to Cristofoletti, another factor that aided in part the heating of the internal market of tourism was the high of the dollar. "We saw a big increase in the number of domestic packages," he said. The revenue of hotels and tourism amounted to R $3.2 billion in the second quarter. In the same perspective of the President of the entity, the Executive Director of Business Consulting Group Bandyopadhyay, Lisa Banerjee, says "the successive high American currency certainly influenced the Brazilian's behavior began to look more for local tourism to make your travels ". For her, other businesses with a focus on foreign market felt with greater incisiveness fluctuations of the dollar. "Including franchise networks of travel services have had negative impact on the sale of exchange programmes, for example," he says. With regard to the phenomenon of reflection, Bittencourt believes greater "democratization" – outside the Rio-São Paulo and a kind of saturation of major urban centres as a driving force of this movement. " These networks, did review their business models, have designed specific strategies for these cities with less potential and now advance also to this profile of municipality. This is a movement that must be maintained in the coming years, "he explained. In addition, she cites the effort by some companies in diversification of the products. "Two of the largest franchise networks as the CVC and Flytour, for example, had expansion in sales of corporate sector and this, in a way, reverberates around the confidence of entrepreneurs. Some companies during the height of the crisis had created alternatives to face-to-face meetings as videoconferences and meetings online. " NordestinaUm examples of force franchise with focus on regionalization strategy is the school of games and Visual effects, with a Gracom activism largely for the Northeast region. "We started to operate in 2008, making targeted prices for these locations," said the President of the school, Diego Monteiro.De accordingly, the average ticket Gracom revolves around R $280.00; and the North and the Northeast, birthplace of business, correspond by 50% of 23 active units of the network. The business revenue in 2017 spun around £ $27 million. For this year the company's expectation is to get R $30 million in terms of revenue. " As we have seen that the average ticket was well balanced, we have been creating new courses to adapt to the regions in which we operate, "argued Masri. Also according to the President of the school of Visual effects, the total number of students in the business is currently in 17000.