The advancement of technology and the rise of consumerism have fuelled the growth of the consumer durable industry in India. Franchising offers a profitable business opportunity in this industry to companies as well as aspiring entrepreneurs. Read on to k
The rise of the consumer class has increased the consumption of consumer durables in India. Consumer durables comprise of appliances (like refrigerators, washing machines, air conditioners, microwave ovens, vacuum cleaners and dishwashers) and electronics (TVs, VCD players and audio systems). The socio-economic changes across the nation have led to the creation of new markets and the expansion of the already existing ones. Franchising is a favourable mode of expansion to envelop the entire range of commodities under a brand umbrella. If you aspire to be a part of this growing industry, then franchising can help you fulfill your desire. Read on to get a hands-on knowledge of the industry to enter and harness maximum benefit out of it.
Contributing factors to the growth of consumer durable industry
The consumer durables market in India is worth Rs 25, 000 crore and has grown tremendously at a rate of 20 per cent in 2009-10. It is expected to grow at a rate of 30-45 per cent by 2012. The consumer durable industry is one such sector that experiences the introduction of new products on a daily basis. Innovation and customisation to address unique requirements of the Indian market will be highly rewarding for such a sector. There are few elements that project good growth in the near future and this is the reason why a number of companies are taking up the franchise route to expand their network across the world. The industry has come a long way and now hosts state-of-the-art products. There are few elements that project a good growth in terms of franchising business in the industry, which are:
Major players of the consumer durables industry
NEXT Retail India Ltd, Eureka Forbes, LG, Videocon Industries Ltd, Samsung India, Micro Retail Ltd (MRL) a wholly-owned subsidiary of Micro Technologies, Intex Technologies, Geek IT Stores, Canon and few more companies have adopted the franchise route to penetrate the Indian market. These companies are utilising new ways to make the most out of the ever-changing consumer demand. According to Sunil Mehta, CEO, NEXT Retail India Ltd, “After opting for franchising, we have become capable to expand our network rapidly and generate good revenue out of it. Franchising is the best available option for any company to expand its business.”
Requisites and leverages of franchising
Not just for the consumer services companies, franchising is a lucrative option for aspiring entrepreneurs to get started with a business proposition. All an entrepreneur needs to have is fervor for business and the fire to strive harder to succeed. As Mehta says, “We usually look at retailers with thrust of business and dedication. These are the prime key requirements to secure the franchise of NEXT Retail.” Besides this, a franchisee is required to have an area of 400 sq. ft to 1000 sq. ft depending on the scale of operations. As the customer demand is washing out the concept of exclusive stores of consumer durable goods, therefore, a franchisee needs to be financially sound to stock up lots of value-added offers and a wide range of products under one roof. Entrepreneurs with sales experiences and expertise in human management will be an added advantage to effectively operate the retail franchises.
On support and training front, a franchisee enjoys a number of leverages. S/he will be provided with all the required support and guidance to set-up the franchises and to run them profitably. Besides this, a franchisee also enjoys the marketing support. As Mehta says, “We provide them with advertisement and promotional support; offer periodic training and uniforms for the sales staff of all the franchisees to ensure smooth running of the business.” Apart from these, the franchisees are also offered IT support and training of the franchisees and their staff regarding the technical and behavioural aspects.
To summarise, one can say that franchise business is a good sector for prospective franchisees, as it offers a great chance to fetch good returns over investment. So, grab the opportunity by associating yourself with a popular brand and get started with your own business.