The franchise industry in India is estimated to be at $47-48 billion and is poised to rise in the future even more. Read on...
McDonalds – an American fast food company is as familiar to us Indians as any other Indian brand like MDH. This is because the famous foreign brands like McDonalds, Kidzee, Lakme` look at India as one of the biggest markets for their business and are opening their franchises in every nook and corner of India.
However, the country is still considered to be at a nascent stage when it comes to franchising asthe franchise industry in India is estimated to be at $47-48 billion, which is poised to rise rapidly in the future. So, what exactly is pushing the growth of the franchising industry in India? Read on to know…
India: The Biggest Market
Being one of the fastest growing economies of the world, India attracts many foreign brands to itself that are looking for earning great revenue. With a huge population and diversity among the cultures, India is a place where entrepreneurs can get a room for experimenting with the audience. The franchise model works across diverse fields like food and beverage, beauty, healthcare, education, and many more, thus allowing a greater number of companies with varied products and services to set up a successful franchise business across the country.
Privatisation in Sectors
With the privatisationof almost each and every sector in the economy, consumers do not have to rely on a single service. For aspiring entrepreneurs, privatisation has come as an opportunity for companies to explore their potential and also for those who wish to enter the periphery of the Indian market. As privatisation happened, there is now more scope for business people in the country and hence the concept of franchising also got home in the Indian economy. People are now actively taking up franchises of bigger brands and successfully living their dreams of entrepreneurship.
Demand for Franchised Business
The demand for franchise-based businesses is exceedingly rising for various reasons. The increasing unemployment has played a big role in increasing the number of aspiring entrepreneurs. As people are becoming more and more aware of the concept of franchising in India, the demand for franchised businesses is increasing.
First Time Entrepreneurs
As first time entrepreneurs, it is daunting for anyone to start a fresh new concept as there is so much risk involved. As the franchise business is considered to be low-failure business model, first time entrepreneurs in India often opt for franchise business in comparison to starting a business afresh. As per recent reports, about 35% of Indian franchisees are first time businessmen, contributing substantially to the growth of the sector in India.