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THE LEBANESE FRANCHISE ASSOCIATION MAGAZINE ISSUE NO 9 | AUGUST 2018 FOREWORD the Future of Franchising and Retail: Embracing Innovation and the Lebanese 04 Spirit

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THE LEBANESE FRANCHISE ASSOCIATION MAGAZINE ISSUE NO 9 | AUGUST 2018 FOREWORD the Future of Franchising and Retail: Embracing Innovation and the Lebanese 04 Spirit THE LEBANESE FRANCHISE ASSOCIATION MAGAZINE ISSUE NO 9 | AUGUST 2018 FOREWORD The Future of Franchising and Retail: Embracing Innovation and the Lebanese 04 Spirit. BIFEX 2018 Retail in Lebanon: 07 Sustainability & Growth. THE LFA TOWN FESTIVAL 13 A Landmark LFA event. LFA ACTIVITIES News and Updates from The Lebanese Franchise Sector. @lfalebanon www.lfalebanon.com 18 CLOSER ISSUE No9 | PAGE 3 THE FUTURE OF FRANCHISING AND RETAIL: EMBRACING INNOVATION AND THE LEBANESE SPIRIT The recently-held LFA General Assembly (GA) elected a to delight customers from diverse cultural backgrounds new twelve member Board of Directors which, in turn, across the globe. It is, therefore, the duty of the LFA elected me as President. It is a privilege and an honor Board to enhance the growth prospects of franchising, for me to lead the association for the next three years in Lebanon and abroad. and to head a Board composed of dynamic creative, and knowledgeable men and women, who have either cre- To achieve our mission, the LFA Board’s road map for ated or successfully represented some of today’s most the coming 3 years will revolve around six axes: recognizable national and international brands. Advancing the interests of LFA members; I am also honored to work within a sector that has such Increasing and diversifying services to members; a high concentration of creative and knowledgeable in- Promoting franchise exports dividuals who, despite a challenging socioeconomic en- Solidifying relationships with strategic partners; vironment, have played a substantial role in the growth Attracting new members to the LFA of franchising and retail, in Lebanon and across the re- Creating synergies with ‘sister’ associations gion. For the successful implementation of this road map, the Despite the milestones achieved, I am also deeply con- LFA needs the energy and ideas of its Board as well as vinced that our potential for growth and innovation is of all its members through a meaningful and construc- still largely untapped and that this why the LFA board tive involvement in the Specialized Committees, whose and myself will endeavor to realize our sector’s prom- revitalization is a central objective of the current Board. ise, by working closely with franchisors, franchisees Finally, the LFA Board and myself believe that, with the and key stakeholders whose capabilities and resources responsibilities of leading an important economic or- can contribute to the progress of our sector. ganization come higher standards of professional and The franchise business model cuts across different ethical conduct, the two ingredients that will permeate sectors, from manufacturing, oil & gas, telecoms, to every effort we spend in the single-minded pursuit of fashion and services. Its reach makes it an ideal ves- our association’s interests. sel to spur change and bring about prosperity through With every success story we create as a franchise com- the modernization of business models and processes munity, with every flagship store and point of sale we that will ultimately lead to increased economic activity build, with every branch we open abroad, and every and to open overseas markets so our companies can Lebanese we recruit, we move one giant step in the di- compete globally, create added-value jobs and export rection of modernization and sustainable growth, and our products and the uniqueness of the Lebanese brand reinforce the socioeconomic fabric of our society, while and way of life around the world. cementing our reputation as a nation of achievers. After all, the ‘Lebanese” brand, its “art de vivre” and “Chic’” have already inspired the creation of numerous Mr. Yahya Kassaa inspirational brands that have demonstrated an ability Lebanese Franchise Association President CLOSER ISSUE No9 | PAGE 4 CLOSER ISSUE No9 | PAGE 5 The Lebanese Franchise Association (LFA) organized, on 18-19 April 2018, in the Seaside Pavilion, the 8th Edition of the Beirut International Franchise Forum and Exhibition – BIFEX, Under the High Patronage of H.E. the President of the Council BIFEX 2018 of Ministers Mr. Saad Hariri. CLOSER ISSUE No9 | PAGE 6 CLOSER ISSUE No9 | PAGE 7 BIFEX 2018 RETAIL IN LEBANON: SUSTAINABILITY & GROWTH BIFEX 2018 came at a critical juncture. Our economy is weak and has been frail since 2012. By the year 2018, the Lebanese will not have seen any signs of economic growth for 6 whole years. Most alarming, however, is that our economy shows no signs of moving towards growth and sustainability, despite the government’s in- tentions and interventions. Through the BIFEX platform, the Lebanese private sec- tor shed light on how companies can unleash their talents and innovative capabilities. The Forum demon- strated that the retail industry, and the brands it com- prises, is an important engine of economic growth, and is well-placed to play a major role in the hoped-for eco- nomic revival of the country. OPENING CEREMONY The Forum presented the new ideas, technologies and The BIFEX opening ceremony was well-attended, as usu- innovations that Lebanese and Arab companies will al. Ministers, high officials, private sector organization need to enhance their competitive advantages. This heads, the Lebanese business community, and interna- also helps Lebanon to move forward and reclaim its tional business delegations attended. prominent position as a hub of business, commerce, tourism and culture. The main speakers were: Mr. Yahya Kassaa, President of the Lebanese Fran- chise Association Mr. Mohamed Choucair, Chairman of the Lebanese Economic Bodies Mr. Charles Arbid, President of the Economic & Social Council H.E. Mr. Avedis Guidanian, Minister of Tourism H.E. Mr. Saad Hariri, The President of the Council of Ministers, represented by H. E. Mr. Raed Khoury, Min- ister of Economy & Trade CLOSER ISSUE No9 | PAGE 8 CLOSER ISSUE No9 | PAGE 9 Liz presented a series of visual creative /store interior projects, implemented at Liberty and discussed their BIFEX 2018 influence in creating a single concept department store and brand. She concluded by saying that our world to- PANELS IN BRIEF day, in fashion and design, is a blend of lifestyle and it is important to connect these senses visually in the right way for the brand. Most importantly, as modern consumers, Liberty clients need to feel at home. 'BUILDING POWERFUL BRANDS velop in unimaginable ways. KERB has been at the fore MARK SHAYLER, “COMPANIES WITHOUT A BRAND of this shift in London’s food culture – going from hobby PURPOSE WILL NOT SURVIVE”. to collective to robust business with multiple strands and growing opportunities. In the context of a shifting Mark said that the most successful companies have a social and economic landscape, Petra discussed the or- clear purpose, a clear “why”. The world is changing and ganization’s business model as incubator of new talent, the way we interact with brands is changing too. We food innovator, legitimizer of this ‘informal economy’ align with brands we believe in; we align with brands and vital addition to the city’s cultural wellbeing. that stand for something. This presentation will look at why purpose matters, what happens when you get it MARC DE SPEVILLE, “BACK TO THE FUTURE OF FOOD wrong, and how you can find your brand purpose. It’s a RETAIL”. funny and provocative presentation. Mark spoke of how food retailers are struggling to keep up with the change in consumer trends and growth of new channels, notably online and limited assortment discounters. This is perhaps not surprising given that 'FUTURE GROWTH DRIVERS' supermarkets have not really changed much since the KARL LILLRUD, “NEW RETAIL AND HOW TO CHAL- first self-service store was opened over 100 years ago. LENGE E-COMMERCE” His presentation introduced truly innovative high-tech Karl discussed how retail stores need to understand and high-touch innovations to help grocers take the what they are up against I order to survive. The chal- bigger, bolder steps necessary to ensure they not only lenge is not e-commerce but actually consumers and survive, but also thrive in the future. consumers’ expectations. He suggested that, in retail, keep your friends close but your enemy closer. By understanding the possibilities for e-commerce and learning about the many challenges they struggle with Karl said retailers need to learn how to fight back, how 'PARTNERSHIPS & COLLABORATION' to challenge and keep their customers. The fight for EDWIN STRAUSS, “HOW TO TRANSFORM INSIGHTS customers is something that has existed since the be- INTO STRATEGY AND SUCCESSFUL IDEAS“ ginning of time. Every product sold has to find its buy- Edwin explained how to apply the principles of Design er. Success or failure depend on what products sellers Thinking, to combine work in research, design, art present to consumers. and technology to foster innovation, develop business LIZ SILVESTER, “LIBERTY THE CONCEPT DEPART- strategies and raise awareness to contribute to a more MENT STORE” sustainable future with companies and brands that put 'NEW CONSUMERS people at the centre of their strategies. & CONSUMPTION PATTERNS' Liz spoke about Liberty London, the world famous black and white department store. Liberty is unique because PETRA BARRAN, “KERB STREET FOOD – A NEW BUSI- Edwin also introduced innovative ways in a digital it has not only always been a department store, but also NESS MODEL FOR A NEW ERA” world with all its opportunities, and went over the a brand in its own right. As Head of Creative for Liberty, many obstacles why insights are often not used in the Petra described how, since 2009, London has seen an it has been Liz’s challenge to connect both the multi most profitable way based on a wrong understanding explosion in ‘new wave’ street food, buoyed by the Crash branded department store with the own-brand Liberty and inefficient processes. of 2008. Spaces, changing consumer patterns, social London‘s core identity, its print, English heritage and media and a rising DIY culture, helped the industry de- diverse cultural collaborations.
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