Small towns offer a unique opportunity of a concentrated market, less competition, increasing disposable income etc.
It’s a common misconception that small towns are not favourable for franchise business opportunities. In fact, many small towns have showcased huge business potential because they offer a unique opportunity of being concentrated markets with less competition, increasing disposable income etc.
However, the success rate of your franchise depends on your chosen business idea. You need to conduct in-depth market research; gather information about the specific geography of the physical location; and scout for the business ideas that will work there. Here are some of the franchise business ideas that will yield you high profits in small towns.
One thing that people living in small towns are being more focused on is –education. Parents want to provide their child with the best education possible right from the pre-school age and are willingly spending more on the same. But, due to the lack of availability of good pre-schools, they have to either travel to long distance or compromise with what is available. Thus, starting a pre-school franchise will reap huge profits in small towns.
According to reports, the beauty, and cosmetic industry has proven to be nearly recession proof and it growing continually since the last decade. The salon industry is registering high growth from smaller towns and cities as well. With the growing influence of social media on our lives, people living there are demanding quality grooming & beauty services. Salon franchises generally come with a reputable & famous brand name, which tend to attract the attention of small town people, thus ensuring higher profits.
Small towns also aren’t as likely to have chain grocery stores as metro & bigger cities. You can consider setting up your grocery franchise, which sells a variety of food products & lifestyle products.
It may come as a surprise, but small town people are major buyers of jewellery, especially that of gold, silver and diamonds. This is because the people there think of it as an investment. Thus, when it comes to gold or diamond jewellery, people trust a credible name, ensuring good profits for your jewellery franchise. In fact, many brands such as Tanishq have already established their presence and are earning huge profits.
With 70 per cent of India’s population residing in either small towns or rural areas, pharma companies have immense opportunities to tap this market. Demand for generic medicines in rural markets has seen sharp growth. The market in tier II and tier III cities is highly unsegmented, thus creating huge opportunities for pharmaceutical franchises in these cities.