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Dec, 03 2014

Make a mark in CDIT retail

With the continuous inflow of disposable income and the advancement of technology, the need for various Consumer Durables Information Technology (CDIT) goods is increasing in India.

According to recent reports, the total CDIT retail market is worth Rs. 137,750 crore and is growing at 19-21 per cent. It is expected to cross Rs. 231,696 crore by 2017. Modern retail is estimated at 23 per cent of this total market and is expected to grow by 28 per cent. Let us browse through the opportunities.

The niche retailers are becoming aware of the fact that for the growth and expansion of their business, technology implementation is a necessity. Integrated application forms the need of the hour in order to drive the growth of the business and give it an edge over competitors. Imparting adequate customer service and operational functionality is their main objective for delivering customer satisfaction. No wonder technology adoption is on the rise!

Moreover, consumer durable goods do not quickly wear out. They serve the need and purpose by yielding utility over a long period of time. CDIT sector has luring returns attached to it as modern retail heavily functions on technology and electronic goods, kitchen appliances, home furnishings and leisure equipments are the main demands of every individual.

CDIT business model must focus on targeted customers. The integrated operating model must be constructed around critical make or break moments with the customer, namely, pricing of inventory, sales team facilitation, store layout and transactional fulfillment. Services like home delivery, home installation and after sales services encourage brand success as they fulfill customer expectations.

TFW brings to you a list of top notch brands in CDIT sector.


Lenovo is a US$34 billion personal technology company and PC supplier in the world and an emerging PC Plus leader  serving customers in more than 160 countries. Franchising offers many benefits to build a retail brand. Franchisees across the country help us take our products to the local market. Currently, Lenovo has over 1400 franchise stores. It is seeking expansion in tier II and III cities.

Franchise facts

Area: 350-500 sq.ft

Breakeven: 9-12 months

Brand presence: 1400+ units

Philips Lighting India

Philips Lighting India is the leading provider of lighting solutions in the country. Close to 90 per cent of Philips Lighting India's revenue come from products and solutions which are designed and manufactured in India for the Indian market. With 30 per cent market share, Philips currently leads the lighting market in India. It recently inaugurated its sixth Light Lounge in Bangalore. Based on franchise model, the Light Lounge is an experience zone offering a diverse range of more than 800 world-class home decorative lighting designs and concepts from Philips. Rahul Taneja, Business Head  Consumer Luminaires, Philips Lighting India, says, “Lighting is a key business division of Philips and we remain committed to strengthening the business with growing retail presence across all important cities in India.” Philips Electronics India Limited deals in different kinds of consumer durables in the national market.

Franchise facts

Brand's presence: 100+ Light Lounges 1200 Light Shoppes

Expansion: Pan-India

UniverCell Telecommunications

UniverCell Telecommunications was one of the first players in the market to organise the mobile retail segment. “We believe in innovation and rolling out new initiatives that focus on customer satisfaction. The innovation started with UniverCell LIVE and the launch of UniverCell SYNC aims at helping customers understand better in this age of smartphones,” says Sathish Babu, Founder, UniverCell Telecommunications. The opportunities in tier II and III cities has driven the brand to go for franchising.

It decided to choose franchise route for exploiting the surging demand of smart phones in the country and enhancing the shareholder value by geographic expanding of the brand. UniverCell plans to roll out 700 more retail stores by the next fiscal year. This will include 500 flagship stores and 200 franchise stores. The brand has entered Mumbai and by the end of this fiscal year it plans to enter cities like Delhi, Ahmedabad and Surat in an attempt to take its presence nationally by expanding widely in the tier II and tier III cities in the South, focusing more on West and North India.

Franchise facts

Area: 800 sq. ft

Investment: -

RoI: 40%

Breakeven: 2 years

The MobileStore Ltd

The MobileStore Ltd is a one stop telecom solution shop that covers all aspects of telecom retail including retailing mobile phones to service providers, mobile phone accessories and even warranty, theft insurance and after sales service like mobile repairs.

“We have our supply-chain, marketing and goodwill in place, which are the three most essential elements needed for franchising,” says Himanshu Chakrawarti, Chief Executive Officer, The MobileStore Ltd

The MobileStore presently has over 700 company owned units and over 90 franchise stores. The brand has been franchising since July, 1987. By the end of 2014, it aims to have 125 franchisees.

Franchise facts

Area: 200-400 sq. ft

Investment: Rs. 8-10 lakh

Franchise units: 90+

Breakeven: 2 years

Sangeetha Mobiles

Sangeetha Mobiles offers mobile phones, tablets, accessories and operator products. Established in 1974, it has carved a niche for itself, with a distinguished reputation for providing quality products and innovative retail solutions. Sangeetha Mobiles Pvt Ltd. also celebrated 40 years of its existence. It has not just introduced the country to many lifestyle products that have defined different eras but also revolutionised the retail sector with a host of marketing innovations.

Franchise model gives entrepreneurs control over their own business under the canopy of a successful and powerful brand. Based on proven concept, it is a fast track to success. L Subhash Chandra, Managing Director, Sangeetha Mobiles says, “Franchise route offers a win-win model for the local entrepreneur and also gives a faster reach for the brand.”

Sangeetha Mobiles aims to open over 300 outlets this year. The brand aims to tap rest of India other than South.

Franchise facts

Area: 500+ sq.ft

Investment: Rs.10 lakh

Breakeven: 1 year

Dell India

Dell India has been among the fastest growing technology companies in the country. An engine for Dell's global growth, Dell India is a strategic component of Dell's transformation into a true IT solutions partner and a trusted IT advisor, focused on end-to-end offerings.

Dell has made an effort to take not only technology but also technological awareness to tier I, II and III cities. Dell currently has 250+ Dell exclusive stores in over 140 cities across India and is hoping to increase the count to 400+ by the end of FY 2015.

People are buying mobile phones, washing machines and kitchen appliances online. Nine per cent of the respondents said they always buy from an e-portal as it gives them best deal and best product. Consumers are wooed by discounts or free gift items. 19 per cent of the people say that they buy CDIT products frequently, and 57 per cent say that they buy them occasionally.

Consumer Electronics and  Durables Categories by Highest Selling

  • Mobile Phones
  • Camera
  • Kitchen Appliances
  • Music Players
  • Computer and Mobile Accessories


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