Food and Beverage Jun, 29 2015

What's the taste of the future for Aussie brands?

Indian market has been piquing the interest of international brands since time immemorial. US brands have largely dominated the F&B industry in India. However, Australian brands are not far behind. Let us browse through these brands that have fast tapped

By Rashi Mathur, TFW Bureau
Feature Writer
What's the taste of the future for Aussie brands?

According to India Food Service Report by the National Restaurant Association of India (NRAI), Indian food service industry is worth US$ 41 billion and is expected to grow at the rate of CAGR 11% and reach US$ 68 billion by 2018. The Indian market is highly large and diversified. For any foreign brand to be successful here, local networking and knowledge is highly important. The best way forward is to partner with enthusiastic entrepreneurs from the local Indian market, region wise to ensure stabilisation and brand growth. That is primarily the reason why most of the international brands have opted for franchise route. In Indian market Australian F&B brands have a lot of demand. These F&B brands can flourish very well in India if the right franchise methodology is followed. 

Cookieman had forayed in the market on a joint venture with the Australian counterparts for India and has also taken the master franchise route for South East Asia. The Chocolate Room has also chosen master franchise route for entering the Indian market. Last year Di Bella re-entered Indian market via master franchise route. Lord Of The Fries is another Australian brand that has forayed in India via master franchise route.

Establishing an International brand in India

In order to establish an international brand in India, the franchisor should uphold the same international standards set by the brand in India also. The quality and service should be maintained as these two things are important for brand recognition. In India, international brands have a lot of demand and expectations to which the franchisors need to stand true. Location is the foremost consideration for any international brand. Brand view and prominence plays a key role in the stabilisation and growth. Also customising the brand to local taste is also an important factor determining success.

From Australia to India

Drifting away from the concept of fine dines, Australian brands have opted for cafes, lounges, gourmet restaurant  and kiosk formats in India. Explaining about the brand’s advent to India, Anupam Saluja, Chief Executive Oficer, Australian Foods India Pvt. Ltd says, “India has always been a biscuit eating nation.  Biscuits are found in every household as a morning or evening snack option to go with the beverages. About 150 to 300 grams of biscuits are consumed on a day to day basis. At the time when Cookieman forayed into India, there were a few major Indian brands who were premier in the biscuit Industry in India. Cookieman’s concept of fresh baked cookies was the first in India and it is this very concept which has made the brand successful in the market.”

Master Franchisee as a selected route

Talking about the immense potential Indian Soil offers and preferred franchise model to operate through in India, Clovis Young, Director, Mad Mex, Australia
 says, “We believe that a master-franchise partner brings the brand to life as he has the same passion and vision to grow and expand the business in the region. And the more active the master-franchisee, the more successful is the business in the region.” 
Another Autralia-based brand, Franchised Food Co offers a bouquet of F&B sub brands and is keen to make India foray. On expansion of this brand into India, Stan Gordon, Founder & Managing Director, Franchised Food Co, Australia says, “We are looking for a franchisee partner who is honest, passionate, has acceptance for our brand and has resources and lots of industry expertise as we see a lot of potential.”

The deterrent of lack of franchising law

In India there is no standard franchising law. In Indian market franchise industry is not at par with the other countries because of this reason. Owing to this, most of the brands are not showing much interest in adopting franchise route. To make up for this, a brand must put some user friendly terms and conditions so that there exists cordial relation between the franchisor and the franchisee to bring about smooth co-ordination.

Related: Savouring success with local taste

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