Over 43,000 franchisee establishments valued at USD 36 billion may be required by 2017 to meet the growing demand in the retail sector from the current base of 13,000 valued at USD 10.6 billion. Prospective investors seeking out-of-the-box business opport
The Indian retail industry is one of the fastest growing industries in India. As much as 40 per cent of the industry is organised and is covered under specialty retail. The retail industry as a whole right now is in the growth phase and for the next three years the annual growth rate is going to be about 35 - 40 per cent. The growth rate of specialty retail would be between 40 -50 per cent.
The retail industry is now not just limited to garments and footwear industry. It has risen a few notches higher in the retail world, all thanks to franchise revolution in India. This industry is a kaleidoscope of numerous sectors, starting from the retailing of luxury leather products to retailing of gadgets to organic food to fitness machines and many more to choose from, the scope is unending.
Take on retail franchising by experts
As per a recent report by KPMG, the organised retail (including Food and Grocery) is estimated to be USD 24billion in 2012, largely concentrated by retail franchisors in the apparel, consumer durables and food groceries space with around 80 percent share. However, India drives only about 2.5 percent of total retail sales (organised and unorganised) through franchise formats, as against nearly 50 per cent in the US, indicating huge potential for the market in future. Over 43,000 franchisee establishments valued at USD 36 billion may be required by 2017 to meet the growing demand in the retail sector from the current base of 13,000 valued at USD 10.6 billion.
Looking at the immense potential across the retail industry in India, new and unique concepts in this industry are booming. As per Sudesh Verma, Head, Green Gold Stores(Green Gold has all the products and merchandise of Chhota Bheem), “Franchising is a growing industry in India and has a long way to go. Opportunities in franchising is huge and so are the returns. In today's scenario India is poised to contribute to a large growth to the concept of franchising, we at Green Gold believes in this and looks forward to making a small contribution in the gigantic growth."
Whereas G Sankar, CEO, Reliance Footprint feels that there was a gap existing in the organised multi-brand footwear retail market and there was no footwear store that could offer so much choice to the customer under one roof and for all individuals of the family, be it men's, ladies, kids and for all occasion like formal, casual, party, home, sports, etc and across all price points. Therefore, they planned a “One Stop Shop” for meeting footwear and accessories need of the customer for all occasions and across all price points under one roof. After having a strong foothold and after going through different phases of change in the format they are now ready with investment friendly module and have just started looking out for franchisees.
Retail franchisors are thronging smaller towns and cities to find franchisees and local entrepreneurs. The last decade has witnessed a lot of new entrants and concepts in Retail. Such excitement in the franchise industry was never seen before. As per Bhaskar Bhat, MD, Titan Company Limited, “For Titan, franchise business model has a lot of significance as it has helped the brand grow and penetrate into smaller towns. Franchising has a bright future in retail.”
If you are seeking the right retail franchise or business to own; we have handpicked a few retail concepts that present a big opportunity. Brands which are retailing kids' products to fashionable shoes to confectionery items, technical products to unique F&B concepts to helmets and many more concepts. Explore the opportunities in the ensuing pages to learn more about how you can own a retail business with a proven business model.
Retail franchise concepts
Business at a brisk pace
Reliance Footprint is a multi branded (more than 50 renowned international, national and own brands) family footwear store catering to needs of entire family for footwear, accessories, foot care & shoe care products.
After operating stores for a few years, now, Reliance Footprint is ready with an investor friendly evolved model to partner with franchisee. Having run the model for more than 6 years now, the brand is confident that this model can travel and be franchised.
Reliance footprint operates with around 150 stores in 18 states and 84 cities. The brand is now planning to expand to top 125 cities that will include metros, state capital and tier 1, 2 and 3 class cities. Hence the opportunity is pan-India.
As footwear category has one of the highest share of organised Retail among all categories and growing at brisk pace. Reliance footprint format being unique to provide “one Stop Shop” to cater whole family footwear and accessory needs for all occasions and across all price points; has good opportunity for the partners. As per G Sankar, CEO, Reliance Footprint, “At Reliance footprint, we used most updated “Tools & Techniques” to meet the customer demands; work with the leading fashion & export houses for developing most fashionable products at competitive prices.”
CEO, Reliance Footprint
“At Reliance footprint, we used most updated ”Tools & Techniques” to meet the customer demands; work with the leading fashion & export houses for developing most fashionable products at competitive prices.”
Footwear category is a high margin fashion oriented category with lots of scope for future.
Chhota Bheem, Bada Profits
Green Gold Store was founded by Green Gold Animation Pvt Ltd. in May 2011. The idea behind opening Green Gold Stores was to create a concept store where children can get all the products and merchandise of Chhota Bheem, Mighty Raju, Krishna Balaram, Luv Kush and Chor Police. Currently the brand has 30 stores operational across the length and breadth of India and a the brand is on an expansion spree. With more than 40 million diehard fans of Chhota Bheem, it was an obvious and a dedicated motive to create a lot of merchandise and products of Chhota Bheem made available under one roof. Hence the concept of Green Gold Store came into being.
Franchise business model has made the brand strengthen its presence. Via franchise route, the brand has been able to launch 30 franchise stores across the country in two years. The franchise route has helped the brand to get established in the retail segment as a serious player and also helped to reach to a million fans of Chhota Bheem.
For Green Gold, the right proposition is to pitch and get like-minded individuals who wants to grow along with them in promoting the wide range of products and merchandise that the company has introduced in the market. Also they are seeking individuals who genuinely like Chhota Bheem.
India is poised to contribute to a large growth to the concept of franchising, Green Gold believes in this and looks forward to making a small contribution in the gigantic growth.
An offbeat business!
Pondicherry based Offbeat apparels started their journey way back in 2002 with a view to make unique, designer quote T-shirts and other useful stuff like key chains and bags for the Indian market. Offbeat has a full fledged designing and copy writing team endlessly developing and designing new concepts. The range of funny, catchy and inspiring T-shirts are proving to be a rewarding business prospect for franchisees. With the advancement of technology, retailing has become much easier and this has promoted the growth of many brands. Mangal Kothari, MD, Offbeat says: “Franchising has helped us improve the visibility of our product. For franchisee selection, we mainly go by the interest shown in our products and the location.”
Currently, Offbeat has 10 stores operational and is targeting tier I & II cities for expansion.
Offbeat sells catchy ideas and designs on T-Shirts, ladies bags shopping bags, key chains, and mugs etc. The ideas are such that they appeal to the entire family.
There is immense scope for aspiring franchisees in an apparel business. If you have a passion for designing and ideations, Offbeat is the opportunity for you. The scope is large as a franchisee can open store in a Mall or even Airports and Resorts and since the operations are very simple, a franchisee can spread to multiple locations for expansion.
Business of Delightful returns
Crepe word originated from France and became famous in Japan from Takeshita Street in Tokyo. In India Crepe Delights was formed to blend Indo Japanese food with Indian and Japanese ingredients and served according to the Indian taste. It is perfect for people who love to munch on the go. Being an Indian and hardcore Punjabi food lover, Rajat Kapur, Director, Crepe Delights, brought this concept in India. He says: “The love for food made me dig into trying new cuisines and that's how we started with this Japanese chain. The brand surely offers a lucrative franchise opportunity. The Indian food industry is estimated at $48 billion in 2013. This is projected to grow at a rate of 11 percent over next five years to reach $78 billion in 2018. Food services industry is set to grow for many years to come, given the rising disposable incomes, a greater population of younger people, the growth of consumers in smaller towns and the widening exposure to new cultures and cuisines besides an increased propensity of eating out.”
After the launch of its first outlet, now Crepe Delights is planning to expand via franchise route in all the Metro cities.
For expansion of its network, the brand keeps an eye on what competitors are doing. Creating awareness with right marketing strategies has also been their focus.
Rajat Kapur, Director, Crepe Delights
”The love for food made me dig into trying new cuisines and that's how we started with this Japanese chain.”
Franchisees can prosper by taking our franchise. It is a unique, low investment concept with quick RoI. An epicure with good managerial skills can own franchisee rights of Crepe Delights.
Business of green profits
Love for food, and focus on health motivated Areva Lifestyle Products Pvt. Ltd to venture into the business via franchise route. The brand was incepted to offer help in overcoming lifestyle issues related to hypertension, diabetes etc through retailing the right type of food and healthy products. Areva's first outlet was opened three years back and received overwhelming response from the customers. Today company has opened four stores via COCO model, and foresees the growth happening through the franchise business model. The company has launched its retail business under the brand name Jaiveco, promoting healthy lifestyle.
Believing that franchising for sure helps brand expand its reach, Areva is focusing on north India for expansion followed by western region. The cities for roll out in north India includes Delhi/ NCR, Chandigarh, Jaipur, Lucknow, Agra, Jallandhar, Amritsar, Ludhiana, Ferozpur, Bhatinda, Ambala, Kanpur, Banaras, Jodhpur, Udaipur, Dehradun, Roorkie, Mussorrie, Haridwar, Meerut, Modinagar and many more. Areva is seeking franchisees who are excited about the concept and are passionate.
Areva is offering low investment and low effort business model that requires constant update as well as patience. It also strategizes of setting communication through self-help-group and media to spread awareness. Not only this, the brand strongly believes its franchisees as mentors and guides for the consumers.
With increasing demand of natural and organic goods, Areva prefers women entrepreneurs as its business partners as they are well connected to the concept of nutrition and family care.
Morarka Organic Foods
Flourishing biz, organic way
Morarka Organic Foods Limited is the outcome of Corporate Social Responsibility program set in 1994 by Gannon Dunkerley & Company Limited to make farming more remunerative for small and marginal farmers. It was with a vision to provide the front end linkages to the farmers. The motivation was to offer consumers, adulteration free food and to become a market linkage support for the farmers. In the beginning, when established retailers were not confident of organic food product demand in India, the brand found many well meaning entrepreneurs who were upbeat about this as a future business. This was the time when Morarka decided to roll out the distribution and retail via the franchise route. The 'Down To Earth' brand of Morarka brings on table complete portfolio of Indian kitchen grocery.
Morarka Organic Foods Limited has already spread out to over 300 cities across India. The chain observed that even small towns with Rs 2-3 lakh population have also been able to sustain one franchisee store. The franchisees need to have retail space, small investment and network. Over and above this, the franchisees must believe in organic as a philosophy, must have the faith in the credibility of organic methods and above all must be willing to communicate with the consumers.
Currently, the brand is having a good business and is looking forward to have brighter future for aspiring entrepreneurs who want to start their own business with low investment. Morarka is trying to evolve a new level of consumer satisfaction in food category with grocery items.
The franchisees through retail enable the test marketing, product portfolio development and consumer education. In the past also all three have contributed in establishing the brand 'Down To Earth' as the first organic food brand in the minds of consumers.
Chatar Patar Foods
Taste success, the tangy way
Owned by Chatar Patar foods Pvt Ltd, Chatar Patar is known worldwide for its Golgappas Known as Gapagap its signature product. Chatar Patar is envisaged as a chain of eateries that serves hawker style Indian street food that is standardised, yet customisable, giving extensive width within its scope of products that is hygienically prepared and served. Chatar Patar will expand its business operations through franchise model that is simple to own and operate, with a very small investment. Prashant Kulkarni, Founder and Director, Chatar Patar says: “Pani Puri has the biggest market than any other street food in terms of numbers. We want to get associated to dedicated franchisees across India and world.”
Currently, Chatar Patar has 11 franchise outlets operational across India. The brand has plans to take the taste of Pani Puri to all parts of the country. Chatar Patar has already received various enquires from Dubai, Tehran, Nigeria and London.
Indore based Chatar Patar plans to make people more aware about their concept. People are surely getting attracted towards the business opportunity in selling “Pani Puri”.
Founder & Director, Chatar Patar
“Pani Puri has the biggest market than any other street food in terms of numbers. We want to get associated to dedicated franchisees across India and world.”
The parent company researches and brings innovation to the industry and products. Chatar Patar is a business option that can be started with a very low investment free of any hassles. The brand seeks passionate people as its business partners.
Gizmobaba is an innovative gadgets/gizmos brand. Gizmobaba deals in unique products that are not available easily, and works on bringing the latest gadgets to the Indian market. The brand started out in late 2011 when a small pilot was done and product sourcing and backend work began.
Gizmobaba.com was formally launched in September 2012. It started franchising in October 2013.
It was during his several visits overseas, especially to the U.S., that Alok Chawla, CEO, Gizmobaba realised that there existed a huge latent demand for innovative gadgets and gizmos in India and nobody was trying to address it. Hence, Gizmobaba was born.
Gizmobaba plans to open 20 franchise outlets in the first year, and then scale up based on earnings and lessons learnt in the first year. “We have just started franchising. We are still in the process of signing up our first few franchisees. But there is lot of scope for franchisees. The online segment is growing fast. Electronic gadgets form the single largest category of online purchases after travel. Visibility in shelves will drive offline growth, as the conversion of window shoppers to impulse purchase is extremely high,” says Alok Chawla, CEO, Gizmobaba.
Innovation at affordable prices is brand's USP. Every month Gizmobaba launches 4-5 new products. Though they can all be globally categorised as gizmos, each product is unique, and addresses a different need.
From a self stirring mug to shuttle cock with LED Lights to 3-colour temperature control bath shower to an alarm clock that starts running to wake you up... the list of innovative products at Gizmobaba is exhaustive.
Design your profits
Sonotech is a premium chain of android smart phones and unique accessories outlets that came into being in the year 2004. The brand started franchising this year itself.
Sonotech has been selling hi-tech medical equipments like colour-doppler, ultrasound machines, patient monitors, x-ray machines etc. for the last 10 years to hospitals/doctors. The brand has now ventured into the android phone and accessories market.
It has one company-owned outlet in Nagpur and more than 10 franchisee owned units in Raipur, Bhopal, Indore, Aurangabad, Ahmednagar, Nashik, Latur, Parbhani, Solapur, Nanded, Amravati, Akola, Chandrapur and Gwalior.
From smart phones to I-Care Senior phones to innovative music players to unique lap top bags and mobile gears; Sonotech offers a wide range of special products under one roof and at affordable prices.
The brand offers high ROI for entrepreneurs associated with it and has Geeta Basra as its brand ambassador.
The brand firmly believes in the franchise model as it sees a big opportunity in fast growing smart phone market.
The brand offers franchise opportunities in different formats for a franchisee fee ranging from Rs 4 lakh to 80 lakh.
Sonotech aims to take the number of its franchisees to 20 by December 2013.
Five years from now, the brand envisions itself in the bracket of top three companies in this segment.
Promising high RoI to its investors, Sonotech expects average business of Rs 30 lakh from its Sonotech Platinum Hub (one of its franchise models).
Steelbird Hi-Tech India Ltd
Gear up for head gear
Steelbird Hi-Tech India Ltd (SBHT) is a flagship company of Steelbird group of industries in India. SBHT is one of the oldest manufacturers of helmets, pannier boxes and auto accessories in India. Currently, the brand offers 25 helmet models and 8 Pannier Box models, each having on an average three to nine colour variations and different decals, which means we have around 800 product variants. SBHT offers wide variety of open face and full face motorcycle helmets like safety helmets, ski helmets, bullet proof helmets, grand prix racing helmets, integral helmets, jet helmets, off road helmets moto cross helmets etc in different sizes from XXS to XXL catering to all customer segments viz men, ladies and kids. Steelbird Helmets is known for its world class standard and quality. So far, the brand has established vast distribution network in different countries.
Commenting on how franchise model will further help the brand to extend its reach, Rajeev Kapur, MD, Steelbird Hi-Tech India Ltd, says: “Our brand is niche for the quality customers. Today, helmet industry has changed as youngsters want safety, style and trendy products. We will be launching Steelbird accessories soon to get the added advantage. Apart from metros, our focus is also on expanding our reach to B and C class towns as well.” Coming over to their expansion plans, the brand will be spreading its wings by opening 200 exclusive Riderz Shoppes pan India.
Moving ahead, Steelbird intends to be Rs 500 crore company by 2015, with a vision to be known as the Asia's largest selling ISI helmet brand.
MD, Steelbird Hi-Tech India Ltd
“We will be launching Steelbird accessories soon to get the added advantage. Apart from metros, our focus is also on expanding our reach to B and C class towns as well.”
Steelbird Helmets is known for its world class standard and quality. So far, the brand has established vast distribution network in different countries.
Biz of Befitting profits
A decade old, Salzburg based HYPOXI® GmbH, boasts of being the world market leader of targeted body shaping equipments. It has thousands of users on five continents, in over 2000 studios and more than 40 countries that rely on the HYPOXI-Method®. In India, Hypoxi has made its presence with its flagship store at Ahmedabad as a unit of Polad Group of Companies. Founded by Dr. Norbert Egger, in 1997, HYPOXI® is a combination of naturopathic treatment with exercise that not only offers a new impulse to the body shaping sector but to the investors in the fitness industry via its franchise business model.
The health care and wellness Industry is a fast growing sector in India. Within this the fitness segment is experiencing healthy growth rate and is vastly underpenetrated compared to several developed and developing countries in the world.
Since this unique Hypoxi method is acknowledged in more than 40 countries around the world with 2000 studios, the company is now banking heavily on franchisees to increase its market share in the highly competitive health and wellness industry in India. The brand is targeting more than eight outlets by the end of 2013, and 20 by 2014, focussing on cities like Mumbai, Pune, Nagpur, Bangalore, apart from Rajkot, Surat and Baroda.
For its franchise studios, HYPOXI® is looking at retailers and first time entrepreneurs who would like to explore an aggressively growing health, beauty and wellness industry. The brand is keen to make inroads in the hospitality sector and tie-up with like-minded players who are ready to invest in the health and fitness industry. It offers a model which returns a great return per annum and the breakeven can be achieved between eight to nine months depending upon the cities, and the capex return is possible in less than 18 months. The company also supports the franchises in their marketing strategies.
HYPOXI® supports its franchises in the entire business process that provides security and a competitive edge to the franchisees.
Do up your gadget & trade
The brand Skintice, which comes from the house of SSK Digital Fashion, is a collaborative venture started by industry professionals with a vision to enhance customers' digital lifestyle.
Skintice offers customers a unique platform for designing personalised mobile skins and covers, within their own localities through a kiosk model, by leveraging the cloud server technology. The product concept, which is already very popular abroad, is fast catching up in India as well.
The mobile accessories market stands at Rs. 1000 crore growing at 100 per cent, faster than the mobile market, which is growing at 60 per cent. Mobile accessories are becoming more of a fashion statement, going beyond their basic functional utility. Skintice views 'personalisation' as the key trend that would gain prominence in time to come.
The brand promises comprehensive support to its franchisees, technological support, software updates and marketing support for brand building.
Its USP lies in providing innovative solution for design and production of gadget skins on-the-spot as well as option for online ordering with a kiosk pickup delivery option.
Skintice offers a huge database covering over 700 devices and thousands of designs.
At present, Skintice has 15 outlets across the country. Skintice aims to add about 100 franchise outlets to its portfolio over the next year.
“We started our franchise rollout in the beginning of the year and are looking at scaling up with the launch of our website,” says Sanjay Sachdeva, CEO, Skintice.
Add glamour to your bathroom business
Leading Australian bathroom and sanitary ware brand Caroma recently launched its range of ultra modern and water efficient sanitary ware in the Indian market. Owned by Clayton Ceramic, the brand entered into a franchise agreement with Delhi based, Starmerc Infratech. Caroma forayed into the Indian market via franchise route and is proud to be Australia's only manufacturer of sanitary ware, operating state-of-the-art facilities in Wetherill Park (NSW) and Norwood (SA). Their facilities combine the latest technology and automated robotics to produce market-leading water-saving products. Reliable, continuous supply and the flexibility are just a few of the benefits Caroma offers.
Caroma has started with Delhi first and then plans to move on to the other major metros like Bengaluru, Mumbai, Chennai , Hyderabad, Kolkata in the next 12 months. In India, Caroma plans to open 50 showrooms within a year.
Caroma has a strategy well devised to focus only on the middle to high-end market in India. CS Chen, Managing Director, Claytan Ceramic Australia says: “The Sanitary ware in the international market is a much organised sector compared to the Indian market. We would like to bring such franchisees on board who will represent Caroma at par with international standards. We will expand via statewide franchisees and district wise distribution.”
MD, Claytan Ceramic Australia
“The Sanitary ware in the international market is a much organised sector compared to the Indian market. We would like to bring such franchisees on board who will represent Caroma at par with international standards. We will expand via statewide franchisees and district wise distribution.”
Caroma franchisees can exploit this money-spinning opportunity and make their business stand out. A Caroma franchisee will get all the technical and marketing