According to India Pet Care Market Analysis by Type, Forecast and Opportunities, 2016-2021, pet care market has grown with a whopping CAGR of 26.21% during 2011-15 and it is forecast to grow with a CAGR of over 17% during 2016-21.
Owing to the love for pets, the utterly untapped industry is gaining recognition with multiple pet stores being opened in Tier II & III cities. Along with other developing countries, starting a pet franchise is forecasted to be a lucrative offer in India as well.
According to statistics from the Franchising Association of India, franchises currently account for only 2 percent of retail revenues in India compared to almost 50 percent in the US. However, that 2 percent is growing at a fast pace, and the implications point to astounding market potential.
Pet Franchising: Where & Why?
Starting and running a pet franchise company is a low investment and high-profit franchise. Running a pet franchise does not require high educational degrees, expensive machinery, or costly furnishings for the outlet. Moreover, these outlets do not necessitate malls and high street location but work better near residential areas. As it is more convenient for people to drop and pick up their pets.
Moreover, it offers the right opportunity for people who want to work with pets. Having a franchise will provide the security of an established business structure, training and extra support, and enable franchisees to get on with the business. Therefore, starting a pet franchise would give beneficial results to franchisors as well as franchisees.
ScoopyScrub's Sanjeev Kumar is of the opinion that a franchise model serves better, as it is cost-effective and profitable. "I truly believe that a franchise model is the way forward for expansion. There is a sense of ownership amongst franchisees – and all you need to do is provide them with the knowledge, training and equipments which are needed to run the franchise.”
Let’s take the Risk
It is true that multiple stores enhance visibility and help in brand creation, but one must carefully examine the cost before investing. The biggest challenge of managing multiple stores in India is the infrastructure cost which includes rent and setup cost.
Just Dogs, another player in the industry, has significantly catered to the pet needs in servicing and grooming, since its inception. One of the proprietors of the brand, Ashish Anthony, Founder says: “There are several pet franchises that offer only a few services and products; but why restrict your business, increase the risk of failure and struggle financially in the ramp-up period or even wait for years for a return on investment?”
Pet franchise business is the next big thing which assures guaranteed success. Yes, the Pet Business is here to stay. For the pets is not only the companion for pet lovers but have also become their style statements. Nothing better than making a business out of your passion.
According to Ashish, “Reaching an exclusive clientele requires a good brand image to thrive in the business. Those trying to start the business can get into it from low investment, but all you need is the passion for dogs, the rest we will teach. Anyone, who is a pet lover, can take up this business.”
Opportunities for growth exist in several new areas of the pet industry, particularly when it comes to dogs. Exciting avenues await entrepreneurs interested in joining the pet industry.
“In the age of doing innovative businesses and startups, it makes sense to be a part of a chain which can share the right know-how and the correct SOP’s as the chances of failure drastically reduces with experience and the sharing of best practices”, said a dedicated Ashish, Just Dogs.
Sanjeev Kumar, ScoopyScrub added,” It is far more profitable than the conventional model of opening branches in different localities.”
Future of Pet Franchising
The pet franchises are certain to become the ultimate way for fast-living, high-spending modern couples and families, who would love to own a pet but not worry of it being alone all day.
“With the 5th largest population of pets in the world ( around 28 million pets ) and yet the penetration of the organized sector being around 7 % you can just fathom the scope this business has”, adds Anthony Ashish, Founder, Just Dogs.
The business needs to have people who have the know-how to guide it in the right direction.