International Brands Sep, 03 2015

Master Franchise guarantees more freedom and exercising of ownership for International brands

By Rashi Mathur, TFW Bureau
Master Franchise guarantees more freedom and exercising of ownership for International brands

The kidswear market which was initially under a vacuum has shown a tremendous growth in the past few years. Adding to the boom, Poney; a Malaysian kidswear brand has made a recent foray in India via partnership with Ajanta International. Rajat Kapoor, Master Franchisee for Poney and Owner, Ajanta International throws light on the growing market and the brand’s expansion plans.

Share some insights about the kidswear market in India.

The kidswear market stands at approximately Rs 95,000 crore including both the orgainsed and unorganised players. This also includes school uniforms, which is a big segment in kidswear market. The kidswear market has shown a speedy boom. The growth will continue for next three years and then the market will start stabilising. 

What according to you should be a preferred route for bringing an international brand to India; Master Franchise route or Joint Venture?

There is no fair comparison between the two. It depends upon the brand. However, Master Franchise guarantees for more freedom and exercising of ownership.

Do you sub-franchise further?

Initially we shall be opening our own stores. After launching two or three stores, we will start sub franchising as we are seeking pan-India expansion. 

What are your expansion plans?

By the end of 2015, we wish to have a minimum of two stores operational in the National Capital Region (NCR). We are targeting to open 25 stores in the next five years which will be a mix of company owned and franchisee-run. Our long term goal is to open 100+ stores. E-commerce is also in the pipeline.

What are your views on e-commerce?

Both the online and offline routes are equally profitable. An optimum mix of the two can enhance the profitability.

Brief us about the brand Poney.

Poney is a Malaysian brand dealing in casual and formal kidswear. It was founded with the objective of creating affordable and quality products for kids. It has 250+ shops and counters globally. It is one of the fastest growing brands across Asia and the Middle East. It has recently signed up with European countries as well.

What sort of training and support do you provide to your franchisees?

We render constant support to our franchisees through our team. We wish to provide them complete help at the time of store opening, so that any challenge that a franchisee might encounter is nipped off in the early stages of growth. 

Share a piece of advice for franchisees willing to take up a franchise of kidswear brand?

In the last five years, the market has seen a rapid transition. It is becoming organised. Expenses are no more a constraint if quality of the product is ensured. Hence, one should do a thorough research, take consumer feedback and then decide upon which franchise to take. 

Franchise facts

Area Investment RoI Breakeven
1000-1500 sq.ft  Rs 45-60 lakh 50% 12-18 months

Related: How International brands evaluate foreign model for the Indian market

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