Interview with Syed Imran Ahmed, Business and Energy sector analyst
PAGE: Tell me about yourself, please.
Syed Imran Ahmed: I have more than 18 years of work experience in the fields of marketing, marketing research, and marketing communications in leading local and international companies. Currently, I am the Head of Advertising, Publications, and Events in SSGC, in charge of campaigns, events, content development, and digital media. In addition, I have taught as an adjunct faculty at leading business schools in Karachi. I am also a frequent contributor to leading daily newspapers and magazines, including Pakistan and Gulf Economist, while creating content for the official company social media pages.
PAGE: PSL has become a substantial brand. What is your take on it?
Syed Imran Ahmed: Definitely, Pakistan Super League (PSL) has assumed the importance of being arguably the biggest sporting event of the country. Like all big sporting leagues around the world, PSL’s commercial footprint has grown with every edition. Reportedly, PSL’s brand value and assets have crossed the $330 million mark, given the incredible the event enjoyed in every town, city, and village of Pakistan and elsewhere, as well as the bevy of international cricketers who compete in it. They are quite clearly the virtual who’s who of international cricket. The current league is being represented by 8 teams, with Peshawar Zalmi topping the list of the team with the highest brand value.
Every year, the sale of new franchises as well as the re-auction of the already established squad is a vital event in itself and a headline in sporting news, with franchise sales going into billions of rupees. In addition, international media rights too see a massive increase every year, a clear indicator of the unstoppable success of the mega event. In addition, domestic broadcasting and streaming rights are easily sold at premium rates, given the popularity PSL enjoys among the TV audience. If this is not enough, corporates zealously grab title sponsorship despite an exorbitant price tag, since they see the mega event as a major investment opportunity. All these are major commercial growth drivers that clearly prove that PSL is one of the most sought-after sporting events in this part of the world. PSL’s market position remains robust among global T20 leagues, generating millions annually in revenue.
PAGE: Fast food franchises are expanding rapidly. McDonald’s, KFC, Pizza Hut, Gloria Jean’s, Hardee’s, Burger King,etc., are household names in Pakistan. How would you comment on it?
Syed Imran Ahmed: I totally agree. Pakistan is a huge consumer market for the fast food industry. With a consumer base constantly increasing and represented by a rising middle class with impressive purchasing power and a growing youth population, Pakistan has established itself as one of the world’s leading markets for fast food businesses and internationally renowned franchises. Interestingly, fast food industry sales are growing at a healthy rate annually, despite local inflation, socio-economic issues confronted by Pakistan, as well as the changing geopolitical scenario. The mall culture, too, has encouraged the growth of fast-food franchises, as all top fast-food businesses are conspicuous by their presence in every food court. Quite clearly, cumulative annual revenue for global brands in Pakistan runs into billions, and this market is projected to grow in the coming years, despite tough competition from the local food chains.
The fast food industry has seen a phenomenal growth in Pakistan, especially since the last twenty-five years, due to growth drivers including the changing demographics,which is dominated by millennials (Generation Y), Generation Z, and Generation Alpha. This is the group that prefers varied time-saving fast food options,with convenience being the key. For them, fast food is more than just an eating experience as it represents a good time with friends and family. This has resulted in brand loyalty among the customers who look for convenience and entertainment when it comes to purchasing fast food products. In addition, the rapid fast food business has also seen the rise of the phenomenon of “Glocalization”, where the franchises have successfully adapted by modifying menus to suit local taste buds.
The franchising business in Pakistan will continue to see significant growth, with experts predicting a “quantum growth” over the next decade due to an ever-expanding middle class, high consumer spending despite a challenging economy to grapple with, and increasing urbanization. With revenues running into billions, the fast food franchises easily invest in huge ad spending through a creative and varied blend of ATL and BTL activities.
PAGE: Experts reckon a quantum growth over the next 10 years in the franchising business. What is your perspective on hotel chains?
Syed Imran Ahmed: The hotel industry in Pakistan is experiencing significant growth, with the hospitality market projected to reach more than $5 billion in revenues by 2026, according to some industry experts. This growth is driven primarily by increasing domestic tourism, rising demand for luxury accommodation, and international chains entering the market and expanding their footprint.
The growth in the hotel industry and franchises in Pakistan has been fueled by rising investment, expansion of chains of top local players such as Hashoo Group and Avari Hotel, along with the entry of newer chains. In addition, hotels have been continuously working on premium services with increasing focus on high-end luxury hotels and branded residences to meet the requirements of affluent local and foreign travelers and tourists.
The hotel industry has also been boosted by high occupancy rates in recent years, especially after the COVID-era dip, following which the industry rebounded, with average daily rates and revenue per available room witnessing remarkable increases. Domestic travel too has surged despite challenging socio-economic conditions, with Northern areas and urban centres such as Islamabad and Lahore being favourite venues for local and foreign tourists alike.
Big hotel chains in Pakistan offer luxury, strict safety protocols, and consistent amenities while catering to elites and business travelers. Conversely, their direct competitors which include local motels, provide affordable, accessible, and localized experiences for tourists and road-trippers across the country.
PAGE: The role of multinational companies (MNCs) is significant in the economy of Pakistan. MNCs have gotten a robust foothold in fashion, wellness, retail, and services segments, including Levi’s, Nike, Adidas, Next, Mothercare, Mango, Hyper Mart,etc. What is your standpoint in this regard?
Syed Imran Ahmed: Multi-national Companies (MNCs) act as key drivers for Pakistan’s economy by injecting foreign direct investment, generating employment, boosting tax revenues, and introducing advanced technologies and management practices. In the case of FMCGs and services, they enhance quality standards, improve supply chains, and introduce competitive consumer marketing, despite causing increased competition for smaller local firms.
MNCs bring necessary capital to stabilize foreign exchange reserves while supporting manufacturing and service sectors. They create numerous direct and indirect jobs, often providing better training and working conditions compared to local firms. In addition, MNCs in sectors like FMCGs (fast-moving consumer goods) significantly raise local quality standards and introduce global product varieties, enhancing consumer choices. In addition, they bring in advanced technologies and manufacturing processes, and in doing so, accelerate the modernization of local industries.
MNCs surely have a major impact on specific segments. In the case of the FMCG segment, companies drive innovation in food safety, supply chain logistics, and marketing strategies while setting high industry benchmarks. On the other hand, local companies face tough competition when it comes to ensuring high and consistent quality and standards.
International brands have also influenced the shift towards structured retail, focusing on superior customer service, brand management, and organized supply chains. On the other hand, the Service Sector (IT and Finance) MNCs contribute significantly to the development of IT, finance, and telecommunications, while supporting Pakistan’s digital transformation.