FRANCHISING - HDB SHOPHOUSES

Abstract

Overheads have gone through the roof, there is not enough manpower and cash. These are problems that continue to plague local HDB retailers, making it particularly difficult for them to grow. The HDB retailers are trapped in a vicious circle: they are unable to offer employees competitive wages because business is slow and profit, poor; and this in turn makes it difficult for them to upgrade to become more productive. This study focuses on franchising as a possible solution to rectify the current situation. It consists of three parts. The first part discusses about the current retail and HDB retail market. In the second part, the author attempts to examine the franchising trend in Singapore. Finally, the findings of the franchising activities in the HDB retail market are analysed and discussed. The findings show that besides helping HDB retailers to upgrade, franchising can be a much preferred method for them to venture into overseas market. The fact that the government has "put its full weight behind franchising" is regarded as the main growth in Singapore, and with this level of official interest, support and guidance, there is every likelihood that this island state will be a model for franchise development by the end of the century.