How to expand in How to expand in Hungary? Hungary? Presenter: Presenter: Tibor Kőrösi Tibor Kőrösi CEO of J.PRESS, board member of the Hungarian CEO of J.PRESS, board member of the Hungarian Franchise Franchise Association Association www.franchise.hu Franchise business Franchise business in Hungary in Hungary
How to expand in Hungary?. Franchise business in Hungary. Presenter: Tibor Kőrösi CEO of J.PRESS, board member of the Hungarian Franchise Association www.franchise.hu. Important facts about Hungary. Area: 93,000 km2 Population: 10 .005.000 - PowerPoint PPT Presentation
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How to expand in How to expand in
Hungary?Hungary?
Presenter:Presenter: Tibor Kőrösi Tibor Kőrösi CEO of J.PRESS, board member of the Hungarian CEO of J.PRESS, board member of the Hungarian
Franchise AssociationFranchise Association
www.franchise.hu
Franchise business Franchise business in Hungaryin Hungary
• Area: 93,000 km2
• Population: 10.005.000
• GDP (2009): 93 billion EUR
• Main cities: - Budapest 1,712,210 inhab.
- Debrecen 207,200
- Miskolc 169,226
- Szeged 169,731
- Pécs 157,680
• Strategic geographical location
• Member of EU
Important facts about HungaryImportant facts about Hungary
Fan chart of the GDP forecast Fan chart of the GDP forecast HungaryHungary
Hungarian franchise-networks by sectors Hungarian franchise-networks by sectors
Services (50)
Clothes (46)
Food (31)
Health & Care (30)
Retail (29)
Business Services,Consultancy (28)
Real estate (25)
Restaurants (23)
Education (22)
Miscellaneous (18)
Furniture & Decoration(16)
Cars (13)
Hotels (6)
Sport (4)
Around 350 franchise-networks are operating in Hungary, with more than 18000 franchisee.
MembersMembers
50% of franchise systems are based on Hungarian ideas and owned by Hungarian companies as well. The other 50% are international licenses and coordinated by either subsidiaries of international companies or Hungarian companies owned by Hungarian master licensees.
20% of all franchise companies in Hungary are member of the Hungarian Franchise Association.
The activities of the HFA have three major scopesThe activities of the HFA have three major scopes
• The first and the most important one is to provide the possibility of ethical franchising by influencing and controlling all regulations connected.
• The second one is to extend the knowledge related to ethical franchising thru regional conferences in cooperation with country chambers.
• Last but not least, the Association helps to meet franchisors and franchisees, and in relation to this we do market organizing activities as well.
Which are those industriesthat would have good potential in Hungary:
- brand new and interesting products and services
- low investment
- home-based franchise
- services sector
- e.g.: café, accessories
Peculiarities of the Hungarian Market - I.Peculiarities of the Hungarian Market - I.
Peculiarities of the Hungarian Market - II.Peculiarities of the Hungarian Market - II.
- proper measure of franchise-fee- tailoring the business model and assortment to local needs- continuous assistance is expected- registered trademark- cultural differences- correct adaptation of the concept to the market- foreign brands are unknown to Hungarians
Negative example:
- Wendy’s, Quick, Dunkin’ Donuts didn’t take the local peculiarities into account, and had to retreat.
Tips and suggestions about entering the Hungarian market, mistakes to avoid: