In conversation with Franchise India, Nina Lekhi, Founder, Baggit shares her franchise model.
Please tell us about your franchising model?
Currently, Baggit is retailing through all channels, mainly large format stores, online stores, MBO’s, EBO’s (Both franchised and company run) and also through exports. Baggit is currently operating through 47 stores out of which 50 per cent are franchised. We are open for both COFO and FOFO model. Since expansion is one of the important ways to move ahead, selecting the right franchisee is vital to this business. We are looking for young entrepreneurs who have passion to start something on their own.
Presently, many global brands in this sector are entering into India. What’s your take on that and do you see it as a competition?
With the entry of international brands in India, there has been a huge gap which cannot be filled because of the competition in the fashion industry, especially in the bags and accessories sector. The market in India is becoming more organised and the market potential for branded players in this segment has augmented. The competition is within to live up to the standards and provide luxury at reasonable prices. In the world of fashion, our brand by virtue of being the largest selling bag and accessories brand competes with private in-store labels, global fashion brands and exclusive bag brands outside India. Baggit’s strength lies in delivering a product which is superior, in terms of functionality as well as design. The acceptance among all age groups and our large variety of skills helps us to retain and grow market-share.
What criteria do you follow for selecting franchisees on board?
The candidate should have the capability to invest, understand how important it is for the franchisee to make this business a success and also have the time to nurture the brand.
What kind of training and business support do you provide to the franchisees?
Throughout the year, we maintain brand hygiene and concentrate on creating brand experience for our customers. We also look at regular meets with our franchisees. Besides, we have a SOP manual which helps the franchisee to understand the standards we would want to maintain in areas of service, customer care, VM, HR, Marketing etc.
We also offer holistic support in terms of major ATL activities to geo marketing. We also regularly keep doing consumer interactions both online and offline throughout.
What are your expansion plans?
We have a plan to open 20 new stores by the end of this year. We are looking at expansion in Metros and mini Metros and then in tier II towns, and will gradually move to other smaller towns of India.
Investment: 20 - 25 Lacs
Existing outlets (company-owned +franchise): 47 operational (26+21=47)
Area: 300-500 sq ft
Breakeven: 2-3 years
Target cities: Metros and Mini Metros
Preferred location: Mall and High Street
Year of starting franchise operations: 2007 years back
Year of inception: 1990
Franchise model: COFO and FOFO