World Franchise Expo 2019
January 3rd ~ 5th, 2019
COEX Seoul Korea
The 'World Franchise Expo (WFE)' is the most extensive, ongoing franchise industry exhibition in Korea. WFE exhibits biannually, once at COEX in Seoul and once at KINTEX in Gyeonggi province. This year was the 50th WFE.
Categories: Franchises were presented in five categories:
● Foodservice franchises
● Non-foodservice franchises
● Retail for franchises
● Service for franchises
● Facilities for franchises
In 2018, the WFE attracted
● 200 exhibitors
● 37,628 visitors (More than 40% from Seoul)
Entrance to the 50th World Franchise Expo
The primary target for the show is individuals interested in opening a franchise. WFE holds seminars to explain strategies to successfully start a franchise and provide other crucial information regarding the franchise industry. Compared to other exhibitions we have attended, the exhibitors were very enthusiastic, aggressively introducing their service/products on the first day of WFE. Listening to the exhibitors, we felt the urge to start the perfect franchise business.
● Foodservice Franchises
Foodservice franchises were most widely represented at the WFE. There were all different types of fast-food businesses such as pizza, street-food, noodles and seafood, and Korean barbeque. Even though the café market in Korea appears over-saturated, coffee focused franchises were attracting attendees.
● Entertainment Franchises
The non-foodservice franchises were primarily focused on entertainment such as PC bangs (Cyber-café), board game cafés and other entertainment franchises. Many of these franchises also provided food to boost revenue. One interesting concept was the study café which provides a small space to study and rest.
● Retail Franchises
Retail franchises were targeting new businesses and franchise headquarters to extend their sales.
● Services for Franchises
Services were mostly related to real estate. There was an agency that not only provides franchise consulting but has partnerships with franchisees to provide a franchise experience to allow potential franchisees to experience operating a franchise before making an actual investment or startup.
● Facilities for Franchises
There were a few facility related booths such as Samsung seeking local distributors for air conditioning and similar products.
● One-Person Business
Walking the show and observing what booths attracted the visitors, it appears that a major trend was towards self-employment opportunities. With the rise in unemployment (driven by a sudden increase in minimum wage and stricter employment laws), self-employment opportunities seemed to have a much stronger appeal than in past years.
● Challenges & Opportunities:
Even though the exhibition is called the World Franchise Expo, it seems to be very locally focused. The webpage was entirely in Korea with no English introduction. Also, Korean franchises generate their income not from royalties but by adding a margin to products or profit generating logistics services. The World Franchise Expo will help to understand the franchise environment in Korea and provide an opportunity to meet a potential Korea business partner.
Jacob at lsh@ircconsultingkorea.com
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