The International Monetary Fund recently reported that India is expected to retain its current status as the world's fastest growing economy for the next several years.
International brands are keen on exploring Indian market, particularly small format brands emanating from cleaning industry. Let us learn about the opportunities in store for the investors.
International brands in cleaning industry see India as a flourishing market for their business. Cleaning franchise business involves reduced costs for investors because of the mobile nature of the business. The franchisees can even run the business out of their home instead of a dedicated business space.
Maid2Clean, a UK-based brand renders domestic cleaning service by providing a fully vetted, reference checked and insured cleaner, who delivers professional cleaning to suit individual needs at the customer’s home. Another brand Chem-Dry, based in Logan, Utah renders carpet cleaning services by using hot carbonated extraction, which is a drier process than steam cleaning. It also offers encapsulation, a process to aid commercial carpet cleaning; upholstery cleaning and pet odor removal.
Metros are the target locations
The brands are targeting large cities as these are high-growth areas. Chem-Dry is seeking Regional Master Franchisees in Bangalore, Mumbai, Delhi, Bengaluru, Ahmedabad and Hyderabad, as for the brand its business services are needed the most in these areas and Chem-Dry carpet cleaning franchise would be successful here. Maid2Clean is looking for Area Developer Investors in India in the next few years. Mike Hanrahan, Managing Director, Maid2Clean said, “The Area Developer Investor shall interface with Maid2Clean in the UK for ongoing support, training and business development and create brand awareness in India. He/she shall utilise the company knowledge to create strong margins with repeat customers. With the support and back up of an experienced UK senior management team, shall create brand awareness to be recognised for quality and commitment to service.”
Hurdles on the way
The main hurdle the brands find is that the business sector has yet to fully recognise that smaller companies can offer best practices and best pricing on meeting the commercial and domestic cleaning needs in India. The brands are on the lookout of Area Developer Investors who would purchase territory license to launch the brand in India and localise it in the region, or Regional Master Franchisees who would market the brand and sub-franchise it further across the territory.“Finding the right quality of Area Developer Investor is challenging. We are unable to find people with successful background in business, strong ethics, good communication skills, articulate, tenacious and hardworking,” says Mike Hanrahan, Managing Director, Maid2Clean. According to Chem-Dry, finding right local partner is the drawback for the brand to prosper in India. Joseph Manuszak, Director of International Development, Chem-Dry says, “The local business person who understands the local market and can marry our brand with their consumer’s needs is important. Each day with over 10,000 cleanings we know well that our continued growth relies on the back of meeting our customer’s needs and exceeding these needs.”
However, if the brands render operational support, assistance for marketing launch and audits, and with India promoting ‘Swachh Bharat Abhyan’ in full swing, these challenges are no barrier in the growth journey international brands in India.