Retail Aug, 31 2015

Master franchising is the buzzword in retail

By Beny Sachdeva, TFW Bureau
Master franchising is the buzzword in retail

236 Nike stores, 52 Levi’s stores & 82 Lotto stores are operational under the umbrella of SSIPL across 99 cities in India. In an exclusive interview with Franchise India, Atul Madan, President, SSIPL talks about the skills a master franchisee needs to posses to run a successful franchise business.

Which all brands are there in your kitty?
We have master franchise rights for a few of the leading international retail brands in India. We operate 236 Nike stores, 52 Levis stores & 82 Lotto stores pan-India. The latest addition to our franchise retail portfolio is Clarks, which we started in 2014.

How has been your journey as a franchisee?
It has been a remarkable journey. We started our journey with Nike &opened our first store in 1998 at New Delhi. With over 17 years of organized retail experience and established partnerships with leading global brands, we bring in a lot of experience and expertise on the table.

What do you think is the most significant aspect in franchise model?
In retail franchising, choosing the right partner is the most crucial factor that a company looks for. Therefore, it makes sense for brands to partner with master franchisees, who have the capability and infrastructure to manage a chain of stores.  Master franchising is the buzz word as franchisors find it difficult to work with individual investors/ partners to operate their franchise stores.

Any comments on real estate as a challenge in running franchise stores?
In our business, right location makes the difference and that too at the right commercials. SSIPL is known to possess some best locations in the most important high-street markets and malls across the country. We operate in over 100 malls and more than 170 high street markets across the country.

How significant is franchising model in today’s world?
It is extremely significant. Franchising is a key model for scalability.  For any brand to grow big, to expand & to achieve the desired scalability, franchising plays an important role.

To be successful in franchising…
One should not compromise on the basics and build a fundamental organization / business model and always work very closely with the franchisor to echo the brand ethos & brand visionfor a successful venture in the long run.

Role of technology in retail…
Working in retail industry without technology support is not practical. We were the first ones to implement AXAPTA software, which is the most pinnacle ERP solution for the retail industry by Microsoft. In retail, technology has to be an enabler than just a support function.

Related: Toddlers crawling towards lucrative returns

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