The India’s High Commissioner to Singapore, Jawed Ashraf, recently declared that India is seeking recognition of Ayurveda as a traditional medicine in Singapore. Let us understand, how Singapore is a viable market for franchisors to expand their Ayurveda b...
Ayurveda in India is a $20 billion ready market, which is growing at a very fast rate. It would become a $5 trillion market worldwide by 2050, states a report by Francorp. Having established a base in India, franchisors opine Singapore is a prime destination when it comes to expanding business overseas. Below are the reasons why investors find Singapore lucrative.
1. Indian population
About 7.4 per cent of the Singapore citizens comprise Singaporean Indians, making them the third largest ethnic group there. Abhilash K. Ramesh, Executive Director, Kairali Ayurvedic Group explains, “The presence of a large number of Indian origin people in Singapore has helped propagate a certain aspect of ayurveda into their lifestyle. Since, Indian brands represent true Ayurveda, they will be a perfect fit for the Singaporean market and will definitely be beneficial for the industry at large.”
2. Strategic importance
Albeit a very small market on its own, Singapore holds strategic importance for entry into the ASEAN region. “Most countries, especially Vietnam and Indonesia are extremely high-growth, untapped markets that are key areas for organic and natural products industry,” says Arush Chopra, Chief Executive Officer, JustHerbs.
3. Small, hence easy to tap
Singapore as a territory is not very large. Therefore, owing to its small size, franchisors can easily widen the reach of their brands there. Sharing a word on the expansion plans of Kairali, Abhilash informs, “We look at opening a maximum of two franchise centers in Singapore. We are open to discuss locations with potential partners. We are also seeking reliable partners for setting up distribution network and registering our products in Singapore.”
4. Government recognition a boost
Ashraf of the Indian High Commission also announced setting up of a cell for Ayurvedic medicine promotion in the High Commission, making it the 26th such unit across the globe promoting Indian traditional medicine by its embassies. “Ayurveda products should be given the same treatment as the Traditional Chinese Medicine (TCM) in Singapore,” said Ashraf.
This measure will be of great use as once the government recognises Ayurveda, insurance agencies can cover the treatments under its schemes. “This in turn will enable brands to cater to a wider target audience. Also more genuine products can be brought forward to the people of Singapore,” quips Abhilash of Kairali. Moreover, registering products and services with the government agencies will become a more simplified process.
5. Exploring digitisation
Franchisors might face the trouble of getting the right staff for operating their units in Singapore. Morever, high rentals of good locations in malls and high street are another hindrance. However, digitisation and e-commerce is a gateway for franchisors to spread their brand in a foreign land. Luxury beauty and ayurveda retail brand Sephora is associated with various franchise brands to provide digital aid. Arush of Just Herbs informs, “We work in Singapore and the rest of Asia through the digital arm of Sephora. We are exploring more opportunities in the region as we are very bullish about the appetite for high quality natural skin and hair care from the region.”