Is it a good idea to take the retail business franchise in India….?

• It’s Food, Clothes & Houses, where people spend their earnings.
• India 5th largest country in terms of consumer capacity and retail destination
• India has a substantial consumer base along with an increase in the purchasing power
• The Retail market is growing at 12% per annum

In India, franchising acceptability is growing by the day and it has a fairly conventional industry spread. There are various franchising options available in the market but it depends upon a lot of factors such as industry growth, government policies, tastes and preferences of the target market and particularly, the capital and risk you wish to take.

Franchising in India

 In India Approximately 600 franchisers, close to over 40,000 franchisees, with an annual turnover anywhere between Rs.8000-Rs.10, 000 crores spread across industries like education, retailing, professional services, health care, etc.

Initially, the education sector is dominating the Indian franchising scenario, although Retail is fast catching up. In India franchising in the retail sector, grew initially in the apparel & footwear segments and continuously developed to cover a wide variety of sectors including food, consumer durables, jewellery, books, home decor, etc.

Opportunity in retail

India, which has a developing working class of more than one billion people, is currently situated as a major force in the global economy and prolific ground for investment in retail and business development. There are a lot of opportunities in Retail Franchise in India. The Retail sector contributes nearly 10 % to the GDP of India and around 8 % of the employment.

Among the emerging and developed nations, India's net retail sales are quite significant. India's retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanization, and attitudinal shifts. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent.

Some key trends in India

The main key factors of organized retail in India are

1-Increase in per capita income which in turn increases the household consumption

2-Demographical changes and improvements in the standard of living Change in patterns of consumption and availability of low-cost consumer credit

The way ahead

The Indian retail sector is undergoing a metamorphosis; modern stores, shopping malls, and multiplexes are emerging across the country. This transformation, along with the increasing purchasing power and changing lifestyles of people, particularly of the growing middle-class, has spearheaded the franchising movement in the Indian retail sector.

Benefits of retail franchising

Brand Recognition

The most important reason for zeroing in on a franchising business is brand recognition and recalls it enjoys with the people. Opening a franchise accompanies the selling power of a known brand. So, when the potential the client sees your new franchise area, they as of now have a familiarity with the brand and products and know exactly what to expect.

Huge market base

The demography of India is ideal for conducting business through the franchising model, particularly in the retail sector. Clubbing this with the expertise of people in the local market makes the franchise arrangement a great proposition.

Summary

The Retail industry has been witnessing consistent growth over the last few years and is expected to grow more in the coming years. There are various types of franchising opportunities in the retail market that are open today.

International lifestyle brands have great plans for expanding in the Indian retail market want to launch its product in India because of the wide market, powerful economy, multilingual culture, and low labour cost. This could be an extremely promising opportunity for investors interested in starting a business in the retail segment in India. Getting the chance of The retail franchise could be the wisest decision that can enable you to get benefits for a lifetime.

Address: Unit No.450, Mastermind One - IT Park, Royal Palms, Aarey Colony, Goregaon(E), Mumbai, Maharashtra 400065

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for start ups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides PhD fellows, business plans, DPR preparation.

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