28 October 2021 - Aleevar’s Managing Director Yap Far Loon is privilege and honour to speak at Franchise International Malaysia 2021 (FIM2021) Exhibition & Conference between 14 and 16 October 2021 organised by Malaysia Franchise Association (MFA).
Aleevar shared imminent novel sector of Plant-based meat, Cultured meat, Telemedicine and Home care opportunities in Franchise industry as we are approaching COVID-19 endemic period.
The Next "Normal" Sector report is available and please click here.
What are the effects that shape the Next “Normal” Sectors?
Covid-19 pandemic brings tremendous impact to the world and its effects are observed in various sectors which include predominantly in Food and Beverage (F&B), education, retail and health care. The shift to next normal has continue to shape our lives from studying and working from home, dining at home, telemedicine and home care. Unknowingly, the practice of new normal by societies has expedited businesses to adapt to these new changes and innovate to stay relevant.
Office and shopping complex occupancy falls in pandemic
Offices, malls in Malaysia may turn emptier with shift to e-commerce, flexi-work arrangements. Between 4Q2019 and 2Q2021, Malaysia’s Shopping Complex drop to 76.6% (minus 2.6%). Klang Valley office occupancy rate fall to 73.1% (minus 5.1%) from 4Q2019 to 1Q2021.
From Pandemic to Endemic - Living with COVID-19
Malaysia joins Southeast Asia’s living with COVID push with restart of interstate, outbound travel. Malaysia new COVID-19 average daily cases hovering at 6,000 where cumulatively where majority of affected people are home quarantine. People are learning to self or home care.
The emerging opportunities
(A) Plant-based meat
Plant-based meats are essentially plant-derived products designed to closely resemble the physical appearance, taste, texture and structure of their original protein. These protein-rich products are mainly sourced from plant and/or fungi. Plant-based meats are categorized into meat, dairy seafood and egg. In the early days, Carl’s Jr, an American fast food restaurant, teamed up with Beyond Meat in December 2018 offering customers with plant-based meat menu at their restaurants nationwide. Meanwhile, Nestle is offering plant-based alternatives to eggs and shrimp on October 2021 as the Swiss food giant expands its menu in the growing vegan market.
(B) Cultured meat
Cultured meats are meat produced from cell cultures of animal cells. The categories for cultured meat include chicken and beef. One of the food tech pioneers brand Eat Just chicken announced collaboration with Singapore 1880 restaurant in December 2020 by serving cultured meat delicacies to the customers. As the market on cultured meat begins to expand, the world’s first lab-grown meat factory opens in Israel as efforts made to scale up its operations in June 2021.
Telemedicine is a remote delivery of healthcare services namely contact, care, advice, reminders, educate, intervention, monitoring, delivery of physical care / medicine and remote admissions. Asia telemedicine services include diagnostic treatment, follow up and drug delivery. The notable brands for telemedicine are DoctorOnCall and Speedoc.
(D) Home care
Home care is health care or supportive care provided by a professional caregiver in the individual home where the patient or client is living, as opposed to care provided in group accommodations like hospitals, retirement or nursing homes. Home care is also known as in-home medical care. The demand of home care has been heightened with further with the rise of home quarantine and, care of aged society who are aging in place.
In-home medical care focuses on several service delivery areas for seniors such as helping with illness recovery and medication delivery, physical therapy - from surgical recovery or quality of life maintenance, general support - housekeeping to meal preparation, transportation and errands, cognitive training to keep seniors mentally engaged and prevent isolation. Example on a promoted franchise format in Singapore includes Nurse Next Door
The meat market and disruption in the food industry
Vegetarianism is the practice of abstaining from the consumption of meat (red meat, poultry, seafood, and the flesh of any other animal).
Globally in 2018, 5% of population (380 million) is vegetarian and 3% is vegan (227 million) where highest vegetarian population are in India (20%~33%), Vietnam (10%),China (4%~5%) and Thailand (3.3%).
Conventional meat market is predicted to drop from 2025 at USD1 trillion to USD720 million by 2040. Meat alternatives could disrupt a multibillion-dollar global industry as the plant-based meat expected to grow from USD120 billion to USD450 billion in 2025 and 2040 respectively. On the other hand, it can be seen that cultured meat will grow to USD630 billion by 2040.
Telemedicine and home care market size
The global telemedicine market size was valued at $40 billion in 2020 and is estimated to reach $431 billion by 2030, growing at a CAGR of 25% from 2021 to 2030.
Globally in 2030, 1 in 9 people (11.7%) in the world will be over the age of 65 - Up from 1 in 11 (9%) in 2019. That has intensified demands for home care as the population continues to age. The demand for home care, or for options for people to be able to age in place at home, will continue to increase.
What’s next during Endemic for Franchise Sector?
In Jun 2020, MFA has shared “Challenges ahead are cash flow, talent loss, damaged or outdated inventory, working capital, consumer priorities, supply chain disruption, inflation and legal matter”
The challenges ahead that Franchise sector will face and consideration to be undertaken are
1. Lead and demonstrate effective Leadership in COVID-19 endemic
Franchisor to communicate with their franchisees, with open communication and be transparent about concerns and nuance on challenges across changes due to COVID-19 across their franchisees network and encourage collaboration.
2. Create brand awareness and differentiation
Business brands need to experiment new product and novel services to complement existing business. In addition, to explore to expand in areas are not as well-known to venture out new target market including providing omnichannel marketing and delivery option to the last mile.
3. Advisory on Financial Viability
A franchisor to continue not only to assess earnings are needed to survive but consider temporary investments for example retail to consider outdoor seating in the case on walk in customers.
4. Bring Forth Relief to Franchisees
Franchisors to consider reducing the royalty rates to support franchisees on case to case basis or strategic reason
5. Continues Communication between Franchisors and Franchisees
Communicate strategy and guidance at all level are needed and known to promote mutual relationship between franchisors and franchisees from the top minimise confusion and isolation at franchisees’ end
6. Realising the Importance of Public Relations
Franchisors to take priority concerns on consumers’ and employees’ health and stay up to date with changing legal operating requirements that nurture the business to maintain a positive image and not only relying basic legal or statutory guidelines.
Our full insight in pdf on The Next "Normal" Sector is available and please click here. For any further inquiries or clarifications, please do not hesitate to contact us via firstname.lastname@example.org.