What's new in Bandung was the Info Franchise Expo exhibition. I took time to attend, all want to observe closely the development of the franchise world in Indonesia today.
As a business exhibition whose target is prospective business / investor, the exhibition itself runs well. In terms of visitors it certainly cannot be expected as much as a book exhibition or computer exhibition. But in my opinion, the attention of Bandung businessmen this time is quite good. And the potential of business people in Bandung is actually quite powerful. I see it from numbers only. The population of Bandung is only around 2.7 million people. But the savings are many. From last year's Bank Indonesia report, I saw third-party fund placements in Bandung banking that reached around Rp.72 T. Most were in the form of deposits (45 T) and the remaining savings. And this is mostly owned by individuals (almost 70%), not institutional. You can imagine how much potential the funds are still "parked" in Bandung. Indeed, the "rich man" of Bandung might be conservative. But franchise can be the right way to lure the funds into the business sector.
The franchise exhibitors were also quite complete yesterday. From the food sector there are Jesslyn Cake, Bread Story, Kebab Turkey Baba Rafi, Kebab Anya, Pisang Goreng P Man, Buana Burger, Andrew Crepes, Roti Maryam, C'lup-C'lup, Dobbi Burger to Ice Cream Campina. The most enthusiastic person I see is the Baba Rafi Kebab Turki booth. Maybe it's helped by the figure owner who is currently popular. The others are actually no less potential. Because each booth provides food samples, me and my wife and children who happen to be fond of eating all, immediately try one by one. In addition to the Turkish Kebab which is really good, I see the delicious and unique Maryam Bread (a kind of cane bread) has great potential. Besides C'lup-C'lup itself which made us surprised, because this skewer food turned out to be quite popular with visitors.
The range of investment value in this food sector is quite varied. The cheapest is Burger Buana which is only around Rp. 2.5 million. Kebab Turki Baba Rafi set a range of 40 million (carts) to over 100 million (cafes). Others, around Rp. 15 million to Rp. 29 million. For the cart model, I reckon that a reasonable investment is Rp. 15-17.5 million. Andrew Crepes was brave enough to set it up to Rp.29 million. A high investment in the food franchise is for bakery, given a more permanent and exclusive place, and a large stock value. Jesslyn Cake sets Rp. 200 - 600 million, while Bread Story even reaches more than Rp. 1 billion.
In the automotive sector, which is quite interesting to observe is AutoBridal. I really believe this car salon business is "not dead" because of the increasing trend of car ownership. Franchise fee of Rp. 75 - 150 million also still makes sense. Only the total investment range ranges from Rp.400 - 900 million in my opinion too large. Although now the Express AutoBridal and Motor packages are available, the investment can be cheaper. Autobridal also appears to be actively innovating. When snow wash has begun to be common, they have a colorful "ice cream" washing menu. But is that what car owners need? Honestly, I'm doubtful.
For the retail sector, AlfaMart is present offering investment patterns that I think are very reasonable. The investment is around Rp. 300 million. The business owner will receive the system, equipment and supply of goods. Tiered fee royalties depend on turnover. But I was very interested in the presence of K-24. Local pharmacy brand that is currently on the rise. The K-24 is quite brave with its 24-hour concept. The investment is also quite high, ranging from Rp. 500 million. My experience, drug margins are very thin. While many drug items are also very limited by time. With a high operational load because it is open 24 hours, this courage certainly requires exceptional inventory management capabilities to keep the cost of goods sold as low as possible.
There are also clothing franchises such as Edward Forrer (shoes) and Shafira (Muslim fashion). Both of them have an investment value of around Rp. 500 million. Both brands born in Bandung are both known to have good quality. Both of them are also famous as innovators in their fields. But Edward Forrer's product has a wider market with a reasonable price in its class. While Shafira with a fairly high price, the market is narrower (middle up Moslem), which today has a very wide choice. With the same investment, Shafira's pay back period may be longer than Edward Forrer.
Those who enter my watch list are actually high-tech businesses like Multiplus. Multiplus which offers one stop shopping for office / business needs must be acknowledged as quite attractive to consumers. This actually continues the success of various "photo copy" centers or always-in-demand document solutions in a big city. Especially with so many pluses, Multiplus is very promising. In addition there is a Java Net that offers the concept of an internet café. This is also interesting, because visitors are not only treated to an internet connection, but also a food menu like a café. However, the positioning in my opinion is not clear. Internet cafe visitors and café visitors are two different communities. Visitors to the cafe or game center are a community of young people who only need "bottled tea" as long as there is a fast and cheap connection. While café visitors who want to eat and drink, do not need very much with an internet connection. Even if you need an internet connection, many cafes now provide free wi-fi connections. Moreover, the investment value of Rp.345 (game center) to 700 million (café) is quite large. This is different from the Wiz Game & Internet Center which focuses only on game centers. Online gamers market is very promising, so the potential is huge. Although the initial investment of Wiz Game which reached Rp.350 million in my opinion is too large. Establishing a game center online is a low barrier to entry, so the competition will also be very tight. With the same funds, people can set up a faster and more complete game center next to your game center. From the Java Net group, there is also an opportunity to become a Micronics - distributor PC Dell outlet. This is quite interesting. Dell is a branded PC that has been very competitive lately. The investment is also under Rp. 200 million.
Besides that, I am interested in the field of Digital Imaging, which is currently advancing rapidly. Services offered include printing on mugs, pins, t shirts, to photo boxes. Dimage offers investment packages that are so diverse that we can design our own services that are suitable for our environment. The investment range is also quite light, from Rp. 4 millions to tens of millions. Thus, investors are easy to start a business and add services according to business development.
There are many more that can actually be discussed. In the education sector there are ILP, iTutor Net, Interkatif, etc. I am interested in Interactive child computer courses, which offer low franchise investment (total investment under Rp.50 million). In the spa sector there are Leha-Leha and Nakamura. Leha-Leha offers a more complete concept, including spas and beauty clinics. While Nakamura is only a reflexology massage. Nakamura's investment, which reaches Rp.250 million, is too high in my opinion for a reflexology business.
That was a glimpse of the info from the franchise exhibition in Bandung, which was just recently.
May be useful.