Typically, commercial and residential construction accounts for 40 to 50% of spend on home improvement in India, owing to the increased urbanisation.
How often does the thought of improving the condition of your home cross your mind? All of you might have a different take on this question depending on the maintenance cycles of your houses, but the main point is that we all think of it at a certain point of time. This is the reason why people invest a huge chunk of their incomes on home-improvement services at least once in a year.
Typically, commercial and residential construction accounts for 40 to 50% of spend on home improvement in India, owing to the increased urbanisation. The statistics suggests that the industry holds enormous potential at present and will continue to do so in the near future, alluring entrepreneurs to take a glance at this booming market.
Since past few years, home improvement services/franchises are gaining a tremendous traction from consumers as the paradigm has largely shifted from unorganised sector to organised one. So, what’s the reason behind this surging growth?
Here are three reasons as to why a home-improvement franchise is worth investing.
Increased Income of the Millennials
The population of baby boomers (born between 1944 and 1964) still dominates the home improvement spending, but the increased income levels of the millennials allow a majority of millennials to invest in the home-improvement services. The main reason behind this is the growing level of urbanisation. According to statistics, urban India accounted for 31.2% of population in 2011, which had substantially increased from 27.8% in the year 2001, adding up over 25 million urban households in the decade. With this, the demand for new housing as well as upgrades to the existing urban infrastructure is driving the home improvement service market.
The increased homeowner equity has also allowed millennials to feel rich enough to put their money into improving their homes.
Big Makeovers make Big Businesses
Home makeover services are one of the most demanded services in the home design market in India. Home makeover services could be a range of services such as painting, remodelling, false ceilings, kitchen renovation and many others. The rapidly changing behaviour patterns of consumers because of the influence of factors like urbanisation, cosmopolitan culture, customisation, and theme-based interiors, are pushing the growth of this sector.
The business model of a home makeover services as matched with today’s trends is picking up the pace and is a lucrative option for businessmen of this age.
Franchising gives Bigger profits in Small Investment
With a creative lens to picture the best version of a home, a lot of people start their entrepreneurial venture in home improvement business. Though the business could be started independently, taking a franchise comes up with additional benefits such as proven model, brand recognition, high margins etc. A home improvement franchise could be started in a minimal amount. The typical range of a home makeover franchise in India is Rs 35-55 lakhs for an area of about 500-1000 sq ft. This makes it a more lucrative model for budding entrepreneurs in the field.
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