Following last year\u2019s trends, the growth rate for new vehicle sales remain under pressure as cash-strapped consumers are keeping their vehicles for longer periods before they replace.<\/p>\n The result is that the fleet of cars on South Africa\u2019s roads are getting older and more units are moving out of their maintenance and service plans, said\u00a0Bezuidenhout.<\/p>\n “South Africans therefore need to service and replace parts at own cost \u2013 making the auto services franchise group particularly favourable. Further growth opportunities exist for franchises to effectively market their competitively priced products and services as a viable alternative to dealerships.”<\/p>\n She further highlighted that even\u00a0if the economy shows unexpected recovery and growth, the auto services franchise industry will still thrive as higher disposable income will see a new wave of entry level consumers who will replace those customers who upgrade their vehicles to new ones under maintenance plan.<\/p>\n <\/p>\n South Africa’s telecoms franchise sector is dominated mainly by the four large mobile networks – MTN, Vodacom Cell C and Telkom.<\/p>\n While all four have come under fire\u00a0from regulators for high data costs, this industry continues to grow, said Bezuidenhout.<\/p>\n “This upward trend is due to the growth of customers accessing the internet from their mobile devices: 61% of South Africans access the internet from their mobile phone and 80% of them use mobile data to do so. This industry will continue to enjoy high levels of growth providing the costs of data can be adequately addressed.”<\/p>\n Another supporting segment to telecommunications is cellphone and other device repair services, she said.<\/p>\n Much like the automotive industry, aftermarket repairs is becoming more favourable – people are repairing rather than replacing their mobile devices.<\/p>\n Within the device repair space there is increased competition from independent service providers who are often seen as more accessible and affordable.<\/p>\n However franchise service providers will still stand a cut above these as they have existing relationships of trust with customers because of a wider network of franchisees and thus footprint.<\/p>\n This is supported by the fact that purchases from their stores come with product quality guarantees as well as a stamp of approval from the brands themselves.<\/p>\n <\/p>\n “This industry continues to see positive growth \u2013 even acting as a driver of job creation as its entry level requirements are generally lower than that of other industries.”<\/p>\n However it also presents an interesting paradox warned Bezuidenhout.<\/p>\n “Even though consumers tend to cut down on so called \u201cluxuries\u201d when they have less disposable income, people still strive to spoil and pamper themselves. The change is seen in what their hard-earned money is spent on.”<\/p>\n “For instance, rather than going to a spa, a woman will choose to get her nails done. That way, she still feels she is treating herself, but at a fraction of the cost.”<\/p>\n Unsurprisingly the building and construction industry has seen a downtrend in recent year due to its direct link to the poor economic climate.<\/p>\n As a result, planned renovations and construction work is typically put on hold.<\/p>\n “Maintaining quality and investigating ways to lower costs is essential for franchises in this sector to remain competitive and attract customers. Evaluating and adjusting procurement practices can be one way to do this,” said Bezuidenhout.<\/p>\n “An important factor to also consider is the location of where the store is being opened. Building franchises specifically, perform much better in areas and suburbs where newly built complexes and houses are rife because home owners are more likely to undertake work on their homes.”<\/p>\n Another area of potential growth she noted, relates to franchises that contract independent or informal builders and handymen.<\/p>\n “By up skilling and training these workers, they can be integrated into the service and building industry\u2019s supply chain thus creating more jobs and growing the industry.”<\/p>\n <\/p>\n “Eye care is a necessity and is typically supported by medical aids.”<\/p>\n “Consider though if financial difficulties cause consumers to cancel their medical aid memberships, then franchises in this industry will begin to feel the pressure more keenly. It would become critical for these franchises to revert to more affordable solutions to attract customers.”<\/p>\n “Private schools and colleges are mushrooming for the simple reason that South Africans are looking to provide their children with skills that make them more employable.”<\/p>\n “Growth is therefore expected to continue in this field. After-school support however is not seeing the same levels of growth (i.e. additional educational classes for maths and science).”<\/p>\n “Although there is currently still demand for these services, there is not as much growth as in the private college space.”<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/01\/car-engine-e1484815550688.jpeg\")
<\/a><\/p>\n
\nTelecommunications<\/strong><\/h3>\n
<\/a><\/p>\n
\nBeauty and Cosmetics<\/strong><\/h3>\n
<\/a><\/p>\n
\nBuilding and construction supplies<\/strong><\/h3>\n
<\/a><\/p>\n
\nEye Care<\/strong><\/h3>\n
<\/a><\/p>\n
\nEducation<\/strong><\/h3>\n
<\/a><\/p>\n
\nUtility services<\/strong><\/h3>\n