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Jun, 15 2012

Make money, the videshi way

What's common among McDonald's, United Colors of Benetton and Cartridge World? Well, they are the crème-de-la-crème of the global industry and are here in India, fuelling growth and momentum to the Indian franchise industry.

MANISH Chandra, a 40-year-old cloth merchant, has dropped the idea of heading overseas this summer. After trips to Canada, around the US and across Central Asia, this year, he said, he was not keen to stray too far from his business, concerned by the additional expense caused by the plunging rupee and due to the availability of a plethora of international brands in the Indian lap.

With the booming Indian franchise industry, international brands have been offering a colossal room for revenue to franchisees. Global brands seem to be in a hurry to cash in on this boom by opting to ink deals via the franchise format. Now that these global brands smell success in all sectors like F&B, Fashion, Specialty Retail, B2B, Services industry, etc., there is an opportunity for brands across the world to explore the Indian franchise boom.

India is on the radar of international brands offering growth and room for revenue; therefore time is right for international brands to hit the Indian platform. Looking at their entry a decade back, there is a sea change in number of brands then and now. From brands across every category, still the F&B sector tops the priority list of franchisees followed by Fashion and Lifestyle, Specialty Retail, Services and so on.

Pitted against a stubborn Indian palate, lifestyle and taste, a majority of international brands have revised their menus, styles and presentations as per Indian standards.

Significance of Indian market

For international brands, India as a market is extremely strong. This is because it is a developing and emerging market and industrialists strongly believe that it will continue to grow. Citing the importance of the Indian market, the spokesperson of Dunkin Donuts says: “The Indian market is very important to us as there is a strong demand for what Dunkin' Donuts has to offer in India and beyond. The Dunkin' Donuts value proposition high quality food and beverages served in a friendly, fast environment at a good value -- is important to our guests in India and worldwide. We are confident our consumers in India will embrace Dunkin' Donuts' traditional core menu featuring coffee, espresso-based drinks and donuts, along with locally influenced menu items.”

Opportunity across the length and breadth

The number of international brands present in India is huge and the fact that new entrants explore the Indian business arena every year is a signal of strengthening of confidence among international brands that India is now a golden bird for them. They have realised it is now one of the significant markets that they cannot overlook for long.

After witnessing success through the franchise route many brands have plans to spread its presence across India. A Dubai-based beauty and spa brand, Aura Thai Spa, entered India in 2010, and launched seven spas across Mumbai in a span of one year. Today Aura has signed franchisees for Mumbai, Pune, Delhi, Goa, Allahabad, Varanasi, Kanpur, Lucknow, Kolkata and Hyderabad. By the end of 2012, it is looking forward to having over 35 operational units in India. The company plans to expand its presence in India primarily via franchising.

Hallmark, another renowned international brand into gifts and greeting sector, began franchising in 2011 and is now swiftly growing its presence in India. Currently, its distribution network is spread across 50 cities, including retail presence via 13 own and seven franchisees. A potential investor seeking partnership opportunity with the brand needs a total investment of Rs 20 lakh (approx.) and an area of 500-800 sq .ft. The brand is targeting 20 franchisees by December 2012. In the next five years, Archies plans to expand the Hallmark chain to 100-plus stores in India.

‘On the Cover’ section of June issue will offer you opportunities that have already made their name across the globe and now you will have a chance to have them in your kitty. Associate with the international giants and reap profits by taking your business to a new scale.

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