Research Apr, 02 2010

A spark for spanking new franchise concepts

With franchising gaining universal appeal, new concepts and companies are making an entry into this arena. The article highlights the unique concepts adopted by a few existing and debutant franchisors that have gained huge popularity. Read on

By Abha Garyali
Sub Editor
A spark for spanking new franchise concepts

Entrepreneurs aspiring to venture into franchising are more open to take up novel and innovative concepts to attain profitable margins in this highly competitive market. Moreover, taking up a franchise from a budding franchisor offers more flexibility to the aspirants in terms of territory allocation, negotiation with franchisors and many more advantages. Below mentioned are a few brands and sectors that foresee a huge potential in their concepts…

Franchise debutants

Last year witnessed numerous debutants entering into the arena of franchising. Most of these entrants adopted unique concepts in franchising to succeed. These franchisors are undoubtedly new in the franchise business but have led the way to new opportunities that have the strength to be the pioneers in years to come. An interesting feature of the debutant brands is that most of them have been launched by the existing players of the industry. For example, Reliance World has started the unique concept of Marketing Franchisees, and NIIT launching NIIT eGuru which is based on a unique comprehensive range of solution for schools.

The survey carried by The Franchising World (TFW) identified 20 debutant franchisors. Most of the debutant franchisors offer unique and innovative business concepts that help them stand out and attract aspiring franchisees. Not to say that all the debutant concepts are new, few among them are from the list of evergreen sectors which are based on tried and tested concepts.

Evergreen sectors

These are the sectors which have a universal appeal and are highly profitable. Education and vocational, F& B and Apparel brands are a few segments included in the category of the evergreen sectors.

Educational and vocational brands: With the awareness of the importance of being professionally qualified, the need for educational and vocational courses is on the rise. Moreover, the increase in the number of working mothers has led to the growth of pre-schools and play schools across the country. New franchisors have adopted the already proven sector as the safest route to success. NIIT eGuru, a comprehensive range of solutions for schools started by the franchise giant NIIT, occupies the top position in the debutant category. It comprises of ‘interactive classrooms’ for teachers, ‘Math lab’ and ‘IT Wizard’ for students. Zee Institute of Creative Arts (ZICA), an animation training institute is also included in the category. Indiacan, a vocational training institute has also proved to be successful in the franchising arena. The pre-schools include new brands like I Play I learn and Brats and Cuties.

F&B sector: In India, a large section of the society is found to spend a major part of their income on eating out. F&B occupies a prominent place in the evergreen franchise sectors. The sector includes novel and unique concepts as well as some already established concepts. Daily Bread started by Britannia Industries Ltd is a new concept of bakery franchise and is expected to have a successful future. Kaati Zone, a quick service restaurant has also come up with its main dish of Kaati rolls. A new brand in the fine dining category is Khyber restaurant, which has recently taken on the franchise route to be globally renowned.

Apparel and accessory brands: With an increase in number of working class and increasing awareness among fashion conscious youth many debutant franchisors have made an entry into this section. Kathak Fashion Mills, ladies ethnic wear company started in 1995 has recently taken the franchise route to seek popularity pan India. Latin Quarters, fashion apparel brand has also been included in the debutant category. Jewellery, considered as every woman’s best friend has also been included in the evergreen franchise sectors. Nirvana Diamond jewellery which originated in 1987 but started franchising in 2009 comes in the debutant category.

Fresh concepts

This category includes franchisors with new and fresh franchise concepts. Ayurvedic health care, automobile services, telecom and service franchising, courier and logistic services, Laptop repair services etc occupy this category.

Telecom and service franchising: Reliance World, a nationwide chain of retail stores of Reliance Anil Dhirubhai Ambani Group (R-ADAG) has recently started the unique concept of Marketing Franchisees (MF). The MF will market Reliance World’s products and services directly to customer’s home.

Ayurvedic healthcare: With the rise of health related problems, people are becoming extremely conscious about the side effects caused by various medications. Ayurvedic healthcare with the vision of providing complete healthcare without any side effects is gaining popularity. Birla Kerala Vaidyashala, a joint venture between Yash Birla Group and Kerala Vaidyashala, started franchising in end of 2008 and has been well accepted by the clients in India.

Logistic and travel franchise: Booking train tickets, bus tickets, air tickets is no more a hassle as travel solutions has become easier with the coming of DTDC Plus Point, a one stop solution for all kinds of services. Travel and tourism franchise has also gained remarkable appeal among the Indian franchisors. Travo, a compete travel and solution provider company has made a debut in this sector.

Laptop solution franchising: The laptop sale and retail has increased in the markets. Club Laptop has recently evolved in this category.

Other new ventures like Identiti, a designer manufacturer of personalised gifts and accessories has made a debut in franchising. Pidilite has come up with its unique ideas of craft, paper craft and fine art, which is being well accepted by its clients and customers. The Spice Club, a specialty store incorporating food items, essential oils, bathing soaps and other important accessories has also made in-roads into franchising.

To conclude it can be said that already successful concept of franchising has more to come its way with all the debutant franchisors, their unique concepts and their brands.

Related: Post budget reactions

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