India`s economic growth is projected to expand at about 7 per cent in 2008 and 2009, before recovering to above 8 per cent in 2010 as world growth picks up, according to the Organisation for Economic Cooperation and Development (OECD). Consumers from the emerging markets have driven the bulk of sales in recent years, averaging around 23 per cent of the total figure from 2003 to 2008; in comparison, developed markets were flat or declining. By 2010, some 40 per cent of total luxury sales could be generated by BRIC market consumers. According to the Department of Foreign Affairs & Trade`s Country Economic Fact Sheet - 2007, UAE stood at second position with a total share of 9.8 per cent, with India sourcing 7.7 per cent share from Saudi Arabia on the export front. UAE is India`s principal export destination. India is Saudi Arabia`s principal import source. UAE is India`s topmost trading partner in the entire WANA region. UAE alone represents 70 per cent of India`s export to GCC countries. Indian exports to UAE account for 6 per cent of India`s global exports, as per the reports by FICCI (Federation of Indian Chambers & Commerce).

Laying the groundwork
Whenever a brand gets ready for an international foray, it goes through detailed research about the specific market, looks at the effective measures to identify the market potential for the company`s products and brands, while evaluating the competition, searching out the right partner to start the business and getting assistance from trade commissions and other government and private organisations made up merely for providing services to the foreign company that intends to set up base in the market with different trade system, government laws and divergent consumer preferences. The company must consider the best entry strategy be it master franchise agreements, licensing deals, joint ventures, marketing/distribution tie-ups or any other strategic alliances. Before importing or exporting the brand to the international market, one must pay due consideration to the target audience and understand the market environment. Moreover, the brand must embrace the local culture and reflect local significance in the services it provides to its customers. It is imperative for an international company to bring its global values to the new market, making sure, at the same time, to execute it in a local flavour.

Companies eyeing India
With regard to the changing global scenario, the liberalisation in economic policies and rising trade between the Middle East and India at this moment has transformed the investment climate in India radically in the last few decades. Investors all the way from the Middle East have zoned in on India as an investment destination. Followed by the changing consumer inclination towards labelled possessions, rising per capita income of the middle class, young population and the increasing English speaking class are few aspects that drive overseas players to come to India. Another major reason for entering the region is the overwhelming growth in the different sectors of the country.
Landmark Group, Hot Brands International, Joyalukkas, Emke Group`s Hypermarket, Abbasi Group, Jawad Group, Jumbo Electronics, Alghanim Industries, Nakheel, Flamingo, the Dubai-headquartered retail chain, Axiom telecom, Ajmal group, UAE`s leading real estate developer Damac Properties, Bahrain-based Devji Jewellers and Emaar Group are the companies that have already made their presence in India.
Talking about their entry in India, Kevin Draper, Head of International Markets, Hot Brands International (HBI) reveals, “HBI entered the Indian market in 2004 with its first franchise and corporate business outlets. Due to the growth in retail and planned development of shopping malls within India, the market was seen as one of the best growth potentials outside of the GCC.” Hot Brands International is currently operating in India as a private entity under Hot Brands Franchise Systems India Ltd.
FranExcel is one the leading franchise marketing, training and consultancy firms in the Middle East. Gareth Parry, Co-founder & MD, FranExcel elucidates, “Through our strategic partnership with Franchise India, we are able to target qualified potential franchisees across India and importantly, we are able to provide a high level of market knowledge, which is vital to the whole process.”
Joyalukkas, being one of the world`s most renowned jewellery chains, has 70 showrooms across the globe. Currently, the company has presence across GCC, India and London. Joy Alukkas, Chairman, Joyalukkas Group emphasises, “Joyalukkas has always placed the needs of customers at the core of its business and has continued to introduce a variety of products coupled with choice, quality and value. Owing to its superior quality services, Joyalukkas has maintained its popularity and preference among its customers both in India and abroad.”
Impact Retail is another Indian company which is setting up a chain of large format retail outlets for consumer electronics (CE) in India, under the brand name `Xcite`. The company has a franchise relationship with Alghanim Industries, one of the largest conglomerates operating in the Middle East. Impact Retail is promoted by Tony Jashanmal, a prominent retailer both in India and the Middle East. Talking about market research, Srikant Gokhale, CEO, Impact Retail reveals, “KSA Technopak is our consultant who carried out extensive research in order to understand the Indian market from the retail perspective about consumers, demographics and each and every city. We tried to understand what kinds of distribution channels there were, who the retailers were, what kind of strength and weaknesses they had and from the consumer perspective, what was lacking.” He further says, “In our own research, we found that there is no top shop that is offering different brands in one place, there is no element of service in these existing stores, design is completely missing -- so all these became our USP.”

Indian labels enter Middle East
With Middle East-based franchisors showing keen interest towards the Indian market, Indian franchisors too are keen to start off their businesses in this region. The reasons for setting up business in the Middle East market are manifold. After establishing their strong foothold in their own country, companies look at the international markets to bring the brand closer to the consumers globally. It is often said that India`s growing middle class has been playing a chief role in the economic development of the UAE over the last 35 years. According to the Embassy of India, Abu Dhabi, UAE, the present strength of the Indian community residing in the UAE is estimated to be around 1.4 million, about a million of which live in Dubai and the Northern Emirates and the remainder of about 4 Lakh in the Emirates of Abu Dhabi. Another aspect is the huge demand for their brands among the Indian Diaspora which is contributing equally in achieving complete value for money.
Jawed Habibs, Group of Tea Companies,, Dabur, VLCC, Blossom Kochhar, Kimaya, Barbeque Nation, Bikanerwala, Welspun Retail, The Great Kabab Factory (TGKF), Encore Hotels, Career Launcher, Monte Carlo, Bharti Teletech, Bharat Hotels Limited, Hidesign, Gitanjali, Dosa Plaza, Voltas, Koochie Play Stations, Ruff Kids, Season`s Furnishings, Bombay Dyeing, M&B Footwear, Gatsby Collection, Gini & Jony, Impact Retail, Lilliput, Arvind brands, Raymond Apparels, Ranbaxy Laboratories Limited, Eureka Forbes (EFL) a part of Shapooji Pallonji Group, Asha`s, Kaya Skin Clinic, Kambala Hospitality Pvt. Ltd, Shahnaz Group of companies, Barista, Revolution, Voltas, Kewal Kiran Clothing Limited, The Professional Courier, Reliance Money, Bengaluru-based Casa Picola, Thomas Cook and Turtle are some of the Indian labels that have gained success in entering the Middle East-based countries.
Talking about the market research for going abroad, Parag Desai, Wagh Bakri Group of Tea Companies explains, “First of all, we had visited the UAE, Oman to meet various prospective distributors and understand the overall market trend of the tea industry. During our visit, we had brought many samples of various brands of competitors from the Middle East and had evaluated the same at our most modern in-house laboratory to match all the technical parameters, i.e., taste, flavour, aroma, appearance, etc.” After launching the brand in the market, the company realised that movement from the shelf was low due to the lack of awareness of the brand; therefore, the company brought in media agencies and started TV ads on leading news channels immediately with high frequency to create awareness.

Franchising opportunity
The escalating entrepreneurial strength within young Indians has been victorious in attracting international franchisors to India. The franchising industry has been witnessing a tremendous response from the world`s best franchisors. Apart from the Middle East, Indian franchisors too are extending their businesses in the country. Middle East-based franchisors that are enthusiastic to do business with Indian franchisors can take assistance from FranExcel which provides advisory services and assistance for both Middle East-based and global franchisors looking to enter the Indian market. Besides consulting firms, trade commissions also play a significant role in providing information about the Indian marketplace. The Indian franchising industry on the other side has also been successful in spreading its presence to newer markets. According to a press release issued by News Distribution Service, India is set to become the fifth