franchising aspects Oct, 25 2010

Franchisors Cashing In On Festive Fervours

Festivals are here again. Retailers and franchisors across the nation are thereby, all set to maximise their profits by luring consumers with discounts, specials schemes and offers. Read on to know what franchisors are offering to the fairer sex this Karv

By Abha Garyali
Sub Editor
Franchisors Cashing In On Festive Fervours

Karva Chauth is celebrated with great fervour in India where in women fast from sunrise to moonrise for the safety and longevity of their husbands. Retailers and franchisors dealing in women centric products and services across the country plan their marketing strategies well in advance to lure maximum consumers and grab the biggest share of retail pie. The franchisors cash in on mostly from the festival belongs to the categories of traditional clothing, beauty services, jewellery etc. However, over the years, there has been a constant change in the consumers buying behaviour. The article highlights the factors responsible for this changing behaviour and what franchisors have to offer this Karva Chauth to maximise the profits of their franchise businesses.

Factors changing the attitude of consumers

Changing consumer behaviour can be attributed to various factors. As Shahnaz Husain, Managing Director, Shanaz Husain Group opines, “Celebration of festivals has seen changes during the last few years, due to consumerism, which has increased so much. Earlier festivals were more homely and on a lower key, but nowadays with people ready to spent, retailers offering their best, festivals are celebrated with great fervor.” Let us explore these factors:

Growing zeal to celebrate festival: With the increased popularity of Karva Chauth festival,  people across the nation celebrate this festival with great pomp and show.

Increase in disposable income: Another factor leading to the popularity of this festival is increased disposable income. Today’s customers don’t mind to spend few extra bucks to celebrate the festival to the fullest.

Geared up retailers: Retailers during this festive season use different strategies to gain maximum footfalls at their stores.  They offer special discounts, coupons and vouchers to attract customers.

Increased consciousness: With the rising popularity, women have become more conscious about their appearance.  Increased number of women visits beauty salons and spas to look their best of this day.

Role of franchising in festive seasons

Franchising has developed and is being practiced on a large scale. Mostly successful businesses employ the franchise route for growth and expansion. Moreover entrepreneurs also consider franchising a safer way to enter this business arena. This increase in brands has led to the majority of people preferring the branded products and services to non-branded stuff. Customers do not mind spending extra to get a branded product or branded services for themselves. Buying jewellery from the organised sector has picked up speed in the last few years. Customers go in for more reliable and guaranteed products offered by the established franchised brands. The same trend is followed in the beauty salon sector and the apparel sector.

Franchisors cashing in on Karva Chauth

Karva Chauth is one of the festivals when retailers are all geared up to gain maximum profits. Kaurva Chauth reminds the Indian women of the D-day when she had put in all her efforts to look her best. Cashing in on these feelings of Indian women, retailers and franchisors start planning different strategies few months before for the occasion.

Traditional clothing companies are the foremost in the list of categories offering special schemes for Karva Chauth. Supporting the above is Jitendra Madan, Managing Director, Kathak Fashion Mills said, “Karva Chauth has a special place in every woman’s heart. To make it better for them we are selling the traditional dresses like suits and saris on the factory rates, which are lower than the shop rates. This is done looking at the increase in sales during the period.”

Another category is beauty service providers. Though a woman is appreciated being beautiful at heart but to compliment her inner beauty are franchisors dealing in beauty salons and beauty supplies franchise services that too at discounted rates. Husain says, “Branded shops offer discounts and free gifts on purchases. Value added offers are there. Many products are launched just before the festival season, to cash in on the demand for various beauty related needs.”

Sonia Coutinho, Salon Head, Rakhi Sawant Beauty Lounge shares, “On account of the festive season starting from Karva Chauth to the wedding season, we have launched many new offers and packages for our women clients.”

Highlighting these she further says, “Women usually go for facials and spas on this occasion. Therefore, we have packages like Varvadhu Panchtatra Nikhar etc. Moreover designer mehendi is very popular. Therefore we have offers on mehendi as well.”

Benefits of special schemes

Though special discounts and schemes hold special significance during festivals for all the retail companies, but these marketing strategies hold special place in franchising business as well. Franchisors get dual benefits as their brands gain popularity with people preferring to visit only organised franchised stores due to trust and faith attached to them. Secondly, being impressed by the kind of products and services offered by them, customers prefer visiting them again to experience similar kind of services. Moreover, besides what franchisor has to offer franchisees at their level also provide various festive discounts thus enhancing the popularity of the brand.

Thus, with changing consumerism, franchisors are all set to gain a fair share of this festive season with their unique franchise concepts.

Related: Corporate executives exploring franchise prospects

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