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Research 2010-04-04

India: successful platter for foreign franchisors

With India emerging as a potential market, the heat is already felt by the international brands. A lot of foreign brands are entering the Indian market through franchising to gain their share of profits. Read on

By Abha Garyali Sub Editor

Due to the rise of massive business opportunities, the international brands have made a beeline to the Indian market. The international brands are foraying at large to the Indian market to enjoy heavy profits. This trend which started long back has recently gained momentum. One of the main reasons is the relaxation of trade policies by the Indian government. Earlier, it was not viable for international companies to enter the Indian markets. Nevertheless, with the government relaxing its trade policies during the 90s, the in-route of these companies have become easier. Moreover, the increase in the disposable income among the middle class and rising awareness for the international brands are the leading factors for the entrance of the global brands. Another prominent reason for this is the craze for international brands and labels among Indians.

According to the survey conducted by ‘The Franchising World’ (TFW), magazine, Top 25 international brands from different sectors were identified. The article based on the study, can help the prospective franchisees and master franchisees, compare the various franchise opportunities and select the most viable one after learning its pros and cons.

Let us find out the dominant international sectors which have tasted success in India but still have lots to offer to the consumers.

Dominant sectors

The survey identified 25 international brands from different sectors. Find below the dominant sectors and the reasons behind their success:

Food and beverage (F&B) sector: With the majority of youth in India, it is no wonder that F&B international brands are the most dominating sector. Youngsters, both males and females, like to spend time and relax in the coffee bars, ice-cream outlets and fast food restaurants. Another reason is the increasing disposable income, especially among the middle class. Moreover, most of people now prefer to eat out regularly, is also leading to its success.

The F&B sector tops the list of international brands with 12 players. These include:

  • Coffee and juice bars (beverages): Coffee bistros like Gloria Jeans Coffees, The Coffee Club (Australia based companies), and Café Jubilee which started in Victoria, Gozo Malta offering wholesome delicious traditional Mediterranean food are included in the list of most successful foreign café bars. Jus Booster Juice, a Canadian brand which entered India through its master franchisee-Brand Calculus is also included in the section.
  • Ice-cream parlours: The ice-cream brands include Baskin Robbins with its 375 outlets in 81 cities of India and Swensen’s which has recently entered India after experiencing great success in US, Thailand etc.
  • Fast food restaurants: The fast food restaurants like Chicking, Pizza Hut, Marry Brown, Subway and The Pizza Company are the top international franchising brands in the country.

Apparel brands: The apparel sector comes second in the list with top three players. With the majority of youth preferring trendy and fashionable stuffs, the apparel sector is sure to grow in the coming years as well. The prominent players like Levi’s available in 110 countries and with 180 franchised stores in India and adidas, sportswear apparel with 600 stores in 170 cities pan India are included in this sector. Kitsch, launched by TSG Group in 2008 is a multi brand luxury retail boutique which offers and promises its franchisees to grow with them is another brand in this section.

Education and training sector: With the rising MNC and call centre culture, the need of management training is felt high in the country. Crestcom International, a management training centre entered India to address these needs of the youth. Moreover, training and education centres for children like Aloha India, and UCMAS, are also included in this category.

Few other sectors: Other players and sectors included in the top 25 are Re/Max, a real estate brokerage, Sign-A-Rama, a graphic design company, Samsonite South Asia Pvt. Ltd, a famous and well established travel goods company. Besides these Cartridge World, cartridge recharging company, Nokia, telecom player, Best Western, hospitality player, Contours International and Meditravels, health, beauty and fitness centres also come into the category of globally renowned players. All these brands and sectors are guaranteed to grow in the coming years due to their unique and innovative concepts. With the awareness of brokerage firms, graphic designs, health, cartridge refilling and telecom industry, all the above sectors are guaranteed to bring in profitable results for franchisees. Moreover, the increase in travelling has led to the use of luggage carriers and hotel industry.

Entrepreneurs aspiring to take up franchising can think of partnering with the global players to gain maximum returns in the franchising arena.

Comment
sunil anand 03, Feb 2010 at 06:40 AM
good informative artical
Anshu 04, Feb 2010 at 10:56 PM
Do you have options for home-based franchisee..or other models where a retail outlet space is not required. In other words, where only Storage space is required (something like warehousing only)....Can reply back to anshukaul05@yahoo.co.in Thanks Anshu
vinod kumar 05, Feb 2010 at 12:27 AM
i am instersted for send me more details
Geetha Murali 05, Feb 2010 at 06:33 AM
Please let me know the types of franchise available that may be home based ones.
THOMAS JACOB 05, Feb 2010 at 06:42 PM
I would like to start home based franchisee business. Can you give most suitable suggestion and details of the same. Regards THOMAS JACOB
jasbeer singh 09, Feb 2010 at 05:25 AM
I would like to start home based franchisee business. Can you give most suitable suggestion and details for Industrial hardware supplier items
AMIT ARORA 12, Feb 2010 at 08:24 PM
I would like to start a home based franchise. please give me details about available franchise.
shaibatul hamd nadeem 13, Oct 2010 at 09:28 PM
I am 59 yrs yrs and have about 32 yrs exp. in marketing in FMCG products. Now iam based in Nagpur since 1997. Prior to this, i was in kolkata and was in charge of 5 States-WB. BIHAR, JHARGRAM, ORISSA AND ASSAM. In Nagpur iam work as a Manager in Pvt.Organisation. Iam looking for work from home which will give me a reasonable income.Please contact me.
Pijush Das 25, Oct 2010 at 11:09 PM
I am interest you are business
venkat 12, Nov 2010 at 09:21 PM
sir,t I have computer,net connection, 2-3 extra rooms space in side house, in a high posh locality of chennai metro. only i can't invest lakhs of rupees, but bank gurantee can be given. with this facility, ley me know the opportunities for home based franchise/business.
Anoop Kishore Bhatnagar 13, Nov 2010 at 03:20 AM
Dear Abha, Please give me more tips on Home Based Business. I am planning to one very shortly. And Please........please do not start anything in the name of RS.
Dinesh Saili 29, Dec 2010 at 02:20 AM
i am working with a NBFC and want to set up business for my wife who is MCOM and very keen to start some business. we ready to invest money depending upon opportunity but would like to start initially as home based enterpreneur. Pls suggest if something is possible under these limitations..
haresh 29, Jan 2011 at 12:39 AM
Hello sir, I bussess man My bussess all over india base ok i franchisor help to more people contec ok.
sanjay Itkyal 02, Feb 2011 at 08:15 PM
I would like to now more about homebased franchises
Rahul singh 09, Apr 2012 at 09:54 AM
i m interested to get the home based business franchisee which provide me great benefit if i operate that business plz suggest me some good opurtunities.
jayashree 13, Apr 2012 at 07:48 AM
Hi, i have a dream to become of the best enterpreneur in biz industry and would like to even manage family responsibilities. Presently i am working with a private firm and earning around Rs.70,000.00 per month. Can you please suggest any home based franchisee opportunity that will earn me the same or more profit on monthly basis. I have my own independent home with a vacant pent house, i also have laptop with internet connection.
Uttia Majumdar 20, May 2012 at 04:00 PM
I am interested in taking up home based franchisee. Can you please give me information on such franchisee opportunities.
Vidya 29, May 2012 at 05:44 AM
Hello, I have a website and would like to take up a franchise and operate from the comfort of my home. Pls suggest some excellent opportunities which will give me good profits on monthly basis.
ANIL KUMAR VATS 22, Jun 2012 at 03:51 AM
I AM INTERESTED IN HOME BASED FRANCHISE BUSINESS .PL GIVE MORE DETAILS
dominic basu 10, Jul 2012 at 05:34 PM
please give more details about home base business via e mail.
sujith us 17, Jul 2012 at 02:53 PM
I would like to start home based franchisee business. Can you give most suitable suggestion and details of the same. Regards sujith kerala
sanjoo 19, Jul 2012 at 10:13 AM
iam intrested in this bus.. so plz give me detail via email...
abha pandey 21, Aug 2012 at 02:15 PM
Let me know i would like to start home based franchisee business or low investment franchise can you give me most suitable suggestion and detail of the same regards abha pandey
Harsh Kulshrestha 18, Jan 2013 at 08:56 AM
MXF is one of the best and easiest Home Based Business worldwide to earn $100 again and again.Call me for more details.
anvekar 23, Nov 2013 at 06:27 AM
Pls email me home based franchise and any low investment franchise. Computerbased thanks.
Jaiganesh 23, Apr 2014 at 02:37 PM
I would like to work in part time home business which will fetch me some good returns. I can 15-20 hours for a week. Please email me if there is any suitable home based internet business. Thanks in advance
Ajay Kumar 25, May 2014 at 12:22 PM
I have my own space , large enough to start a business, i am interested in home based franchisee , kindly guide me through this .....!
sunil 15, Jan 2015 at 02:17 PM
I would like to start a home based business. can anyone suggest me a good one.
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