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THE 'CARTE DU JOUR' OF A RESTAURANT HAS SPECIAL DISHES TO SUIT THE TASTE BUDS OF YOUTH.
THE 'CARTE DU JOUR' OF A RESTAURANT HAS SPECIAL DISHES TO SUIT THE TASTE BUDS OF YOUTH. FOLLOWING THIS 'BENT TOWARDS YOUTH', APPAREL BRANDS, TOO, ARE DESIGNING AND CHANGING THEIR STRATEGIES TO LURE THE 'YOUNG AND HAPPENING'. BRANDS CATERING TO GENNEXT ARE PERHAPS EARNING THE MOST. BIG BUSINESS PLAYERS ARE OPTING FOR BRAND AMBASSADORS THAT CONNECT WITH THE YOUTH. SO, INVEST IN BRANDS THAT TARGET YOUTH, AS THE FUTURE LIES IN THEM.
INDIA tops the list of world's largest youth population. Youth comprises about 65 per cent of the Indian population. This implies a huge opportunity for franchisors, who are targeting the young. Having understood the youth power well, Indian as well as international franchisors are eyeing youth as a growth engine in the retail sector. According to a recent research, the total population of GenNext (13-24 years) is around 300 million and out of this, the total population of GenNext living in urban areas is around 29.5 per cent or 88.5 million. Interestingly, this category spends around Rs 3,000-40,000 per month. The youth spends mostly on food, clothing and accessories, entertainment and health and beauty.
The franchise community is going gung-ho investing in segments and brands that cater to youth. With such a huge market and high growth going forward, franchisors tend to be excessively youth focused. Therefore, it's the best time for entrepreneurs to take a franchise of a brand that targets the youth for high returns. Most franchisors believe that the success rate is the highest among youth-oriented brands, as youth is willing to experiment and appreciate a product or a brand. The uniqueness of this category is that they not only appreciate a product or a brand, but also like to make a lot of 'noise' about it.
Youth is the secret behind the success of Fastrack, an affordable fashion accessories brand only for the youth. “Fastrack was initially started as a 'cool' and trendy collection of watches by Titan. After receiving a remarkable response, the brand was separated and started as an individual business unit. “100 per cent of our collection is for the youth, as we offer irreverent designs at affordable prices,” says, Ronnie Talati, Vice-President & Business Head, Fastrack & New Brands.
As per GS Bhalla, Founder & CEO, Cocoberry: “With the youth contributing to almost 60 per cent to the brand's profit, Cocoberry is willing to experiment with new ideas and products. The young generation is getting extremely health conscious and Cocoberry meets their need of eating healthy without worrying about their waistlines.”
Hectic schedules and changing lifestyles have lead to the eating out habits of the youth population. About 60 per cent of Indians are below 30 years and have formed new appetites. The Chocolate Room, an Australian brand in India since October, 2007, is a unique F&B brand and has 42 stores across India. According to Vikas Punjabi, MD, The Chocolate Room, India: “Chocolate as a product is mainly for the age group between 4 and 35 years and we have special and attractive discounts and packages for them. Around 70 per cent of the income comes from youth.”
Another emerging food brand Cookieman has also designed its outlets in a way to give it a vibrant and youthful look, as they are majorly located in malls, which further helps them reach a large segment of the youth. Considering youth as their target audience, they have recently introduced youth-oriented gift packs. They also run 'Best Baker contests' focused at schoolchildren and Cookie Eating Contest focused at teenagers/college-goers.
Youth is the secret of franchise success
Now, the million dollar question is that why take up a franchise of a brand that targets youth? Brands that are targeting youth reap maximum profit share as compared to others, consequently these brands assure 100 per cent growth. All in all, the basic strategy of franchisors catering to youth is safeguarding their future by catching them young and creating brand loyalty right from the start. Therefore, it's perhaps the best time for entrepreneurs to invest in a brand that revolves around youth. The brands targeting masses have taken a backseat in the franchise fraternity, simply because the brands targeting GenNext relatively assure early break-even, high returns and more safe and sound prospects.
Why take franchise of brand targeting youth?