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urbanisation 2018-10-09

How Urbanization is Bringing Opportunities for Franchise Business

Delhi is projected to become the most populous city in the world around 2028, according to new United Nations estimates, which said India is expected to add the largest number of urban dwellers by 2050.

By Senior Sub-editor
How Urbanization is Bringing Opportunities for Franchise Business

The 2018 Revision of World Urbanization Prospects produced by the Population Division of the UN Department of Economic and Social Affairs (UN DESA) and said that 68 per cent of the world population is projected to live in urban areas by 2050, which currently is at 55 per cent.

Earlier this year, Amazon claimed that it saw a 235% annual growth in tier II and tier III cities for a four-day promotion it ran.

A huge population is moving out of rural area and many rural areas are urbanized due to the growing demands of needs, business and most importantly for creating opportunities.

Here are some of the points which show that urbanization and franchise business are directly proportional to each other:

New Business Opportunities:

The big brands and big companies have identified that tier-II and tier-III are the potential areas to expand, which can only be done via franchising.

In order to expand their brand name, to every corner of the country, these brands offer huge number of business opportunities for the local people.

Create Job opportunities:

A huge chunk of the rural population moves to the cities, in need of a job. If franchisors are ready to expand in rural areas, the population does not have to leave their houses and roots; they can get enormous job opportunities in their locality.

A franchisee cannot be run single-handedly and one cannot afford to invest alone in running it, this is where job opportunities and mutual benefits come into play.

Education:

The rural population is seen to be dislocating from their houses to provide better education to their children. So now the education franchisees have identified their demands rising in the tier-II and tier-III cities.

A lot of preschool franchises, skill development franchise are keen to open their franchisees in these places for their growing demand and cheap real estate.

 

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