Everyone seeks a profitable business format which has the benefits of selling in a high traffic area to targeted customers, with low-cost market entry and lease term flexibility, all in a small area; and Kiosks offer exactly the same
For any retail company looking to expand their presence or an entrepreneur looking to venture into the retail industry, starting a Kiosk is a remunerative business opportunity.
Everyone seeks a profitable business format which has the benefits of selling in a high traffic area to targeted customers, with low-cost market entry and lease term flexibility, all in a small area; and Kiosks offer exactly the same.
A retail kiosk (also termed to as a mall kiosk) is a store operated out of a merchant-supplied kiosk of varying size and shape with lighting and decor that complement the mall and design features, which is typically enclosed with the operator located in the centre and customers approaching the vendor across a counter.
The use of kiosks in a retail setting is quickly gaining popularity in the global market as many retail brands are adopting the strategy of using kiosks to increase revenue. Some of the examples are Baskin-Robbins, Dominos, Dunkin Donuts, Jawed Habib, The Body Shop, Cafe Coffee Day, Ferns N Petals etc.
The retail industry in India is worth $410 billion currently of which about $20 billion in modern retail, which includes malls and chain stores. Kiosks make about 2-3% of modern retail at present according to industry estimates.
Here are the following reasons why retail Kiosks is the best business opportunity in less investment.
Starting a business requires huge capital, and if the business fails, one has to face huge losses. So, Kiosk is a great opportunity for aspiring entrepreneurs to experiment with their idea before taking it to a larger scale. A kiosk also enables you to get live feedbacks about your brand without having to spend too much money in initial days.
Any budding entrepreneur, who is looking forward to venturing into the business world but is constrained due to lack of capital, can opt for Kiosks format. Since Kiosks are a smaller version of a retail store; it requires less capital than the traditional retail store. This is mainly because a kiosk demands less area and human resource.
Another major benefit of a kiosk is that it offers great flexibility. Given the smaller size of the store, one can act faster to the emerging market trends and changes. A kiosk business also offers you the flexibility to move to a different spot within the mall if the current one isn’t generating enough business. Moreover, kiosks are also easy to maintain.
Kiosks are generally located in the central location of a mall. It gives to prime access to your target customers who are already shopping. Kiosks generate high footfall without spending a huge sum of amount. You can also locate your kiosk near a bigger retailer whose customer base is your target, for instant and effective exposure and sales.
For an already established business, kiosks are a great way for aggressive expansion. Since it’s a small format business; it is a relatively inexpensive way to expand. One can strategically place their kiosks in malls in different cities with low investment.