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May. 31, 2017

Seven lessons to learn from overseas expansion panel discussion Kansai Gaishoku Business Week 2017 Specialized Seminar “Law of victory that has been seen from success and failure cases of China × Singapore × Indonesia”


I participated in the seminar of the above-mentioned title.
It was an hour and a half talk battle between Mr. Masaki Suzuki vice president of the “Kora” and Mr. Koichi Fukami president PrunZ.
There were scenes that I laughed in spite of myself.

■ China
Mr. Suzuki advanced to Qingdao five years ago and started from three joint venture companies.
It was going smoothly, but a few years later, a big issue came out about the right of developing areas.
Not only the logo, but also the miso soup of the essence was imitated as the same taste while not knowing.
Moreover, although we paid construction fee such as interior at the same time with advance money, they did not correspond properly such as later maintenance etc.
→ Lessons Learned 1: Since China is made up of local human relationships, we must deeply understand it before expanding there.
→ Lessons Learned 2: Construction fees in China and other countries should not be paid in advance or paid at once.

Mr. Fukami focuses on Guangzhou. He seems that there is considerable potential growth as it is in alignment with Hong Kong.
A business model that finds investors and dispatches shop managers and cooks.
→ Lessons Learned 3: China has a considerable advantage in griping a special "person", that is, operation.

■ Indonesia
Mr. Fukami expanded to Jakarta five years ago.
The congestion is worst in the world and he spend for 4 hours in the car from the airport to his shop, so he couldn’t charge the smartphone and he also experienced to loose all means of contact.
Currently there are no inheritance taxes in Indonesia he usually realizes that the level of wealthy people is out of the common.
There are rich men who ask for an overnight party with an extraordinary budget.
Staff’s personnel expenses are also attractive part . . .
→ Lessons Learned 4: In Indonesia, staff talk about each other's salary, so if you cannot explain the contents of the difference by position, it becomes a source of trouble.
→ Lessons Learned 5: In Indonesia, prepare for traffic jam and put it in the schedule time of the day.

■ Singapore
Mr. Fukami fulfilled a shop opening in a place where anyone in Singapore admires.
It seemed that everything is going well but I fitted into a big pitfall in the fourth year when renewing a contract for continuous two years after the first contracting of three years.
In Asia, the power of developer is tremendously strong.

→ Lessons Learned 6: Singapore is "easy to get started, but it is a difficult place to continue," and you might be necessary to consider it as a showroom.
→ Lessons Learned 7: In any countries including Singapore, you should be careful of the contents of the contract. Especially the condition of "returning to it as it was” may cause a trouble.
It is a little frustrating not to write all (laugh)

I was impressed by the stories of the two persons that they overcame the big challenges and proceeded forward.
Today, it seems to have a big wave of shortage of people especially in the field of service industry in Tokyo.
If it becomes 2000 yen / hourly payment, it may be that there are other movements such as New York and Singapore, that is, services such as catering services and advance reservations by third parties other than the F&B industry. But the last person laughing is a runner that will win the smile of the customer saying "Thank you for the meal".

JIFA (http://jifa.or.jp/about/) is an organization that the two persons started to focus on in order to share such challenges while getting through various walls.
I will pay attention to the activities of JIFA in the future.

Written by Lika Nakanishi from Franchise Japan