India has become the fifth most favourable destination for international retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail Development Index (GRDI). TFW magazine has dissected the retail industry a
Apparel clothing retail tops the priority list of potential franchisees. The Indian clothing and apparel Industry has an overpowering presence in the retail ecosystem of the country. Presently, it contributes about 14 percent to industrial production, 4 percent to the GDP, and 17 percent to the country's export earnings. It provides direct employment to over 35 million people.
The Indian apparel industry is estimated to be worth Rs. 3,270 billion in 2011-12 and is expected to grow at a compounded annual growth rate of 8.7 per cent till 2016. The apparel industry growth would primarily be determined by the increase in demand for readymade apparels in smaller towns, youth population and rising income leading to mounting fondness for branded apparel. TFW has cherrypicked the best retail franchisors in apparel industry based on the franchise performance in the year that has just gone by. Following are the enlightening opportunities fabricated for success.
Women’s wear retail will dominate in 2020
Category % share in total apparel market Branded USD Bn Unbranded USD Bn
Men 39 18 30
Women 42 20 31
Kids 19 05 20
Total apparel market 100 43 81
Siyaram's
Siyaram's was incorporated in 1978. It went on public in 1980. The company crossed the mark of Rs 500-crore turnover during the financial year 2008-2009 and achieved Rs 1,000-crore turnover in the financial year 2010-2011. Their module is highly viable for franchisees as it is a one-stop shop offering everything from fabric to apparel. With a strong brand presence and product innovation, Siyaram's is all set to expand its business even further offering booming opportunities to franchisees.
Siyaram's is planning to open outlets across India, particularly in all major cities with the population of five lakh and above. Currently, the company has 175 outlets. Out of these, 165 are franchisee run. Siyaram's is spread across a wide network of over one lakh outlets across India and manufactures 60 million meters of fabrics annually. In the last couple of years, they have opened a new outlet every eighth day on an average.
Franchise facts
Area: 1,000 sq.ft.
Investment: Rs 25-30 lakh
RoI: 35 %
Franchise units: 175
Expansion plan: 500 showrooms in next 3 years
Raymond
Raymond, a retail brand in the men's fabric and apparel category has been synonymous with quality, innovation and market leadership over the years. Established in 1925, Raymond is known for its superior quality worsted suiting fabrics, stylish apparel and inimitable service, The Raymond Shop, the retail arm of the brand, enhances customer experience with a touch of luxurious lifestyle.
Franchising since 1959, the Raymond is successfully operational in almost all the cities across India. The company believes that franchising model enables a brand to reach a large segment of the target market with a touch of global expertise and franchisee's localised flavor, extending the best of both worlds to the customers. Raymond aims to grow at a faster pace and achieve leadership position in every sphere of its operation to stand tall as the most preferred brand amongst all leading international and domestic brands.
W
W, a women's wear brand mirrors the new age Indian woman. With over 140 exclusive stores and over 600 touch points with leading retailers; W is a name to reckon with in the field of women apparel. The brand that firmly believes in the franchise model is all set for an aggressive expansion this financial year. Though they had started experimenting with the franchising model as early as 2005, they got into it in a big way from 2010 onwards. As of now, more than 70 per cent of their stores are run on this model. The experience has been very encouraging for them and today more than 50 per cent of their franchisees operate multiple stores.
Franchise facts
Investment: Rs 30-60 lakh
Area: 700-1000 sq. ft
Expansion plan for 2014-15: 60 new stores
Being Human
Owned by Mandhana Industries Ltd, Being Human is a brand that is already ruling the hearts of millions across the globe. The brand hopped on to the franchise brand wagon in 2013 and is now steadily growing by leaps and bounds. The profile of Mandhana Industries Ltd and Being Human clothing brand confers about the success of its franchise business. The brand has a huge number of brand loyalists as it is one of the only brands with fashion and charity as its USP and secondly it is backed by the Bollwood star, Salman Khan. The brand believes that franchising is critical for retailers to achieve exponential growth. The brand boasts of 30 EBOs in Asia including one in Nepal.
Franchise facts
Area: 1000 sq ft
Investment: Rs 70-90 lakh
RoI: 15-20%
Total No. Stores: 30
Expansion plans (in numbers): 5 stores by 2015
Chhabra 555
A name to reckon with in the apparel industry, Chhabra 555 has been following the tradition of providing distinctive products at the most reasonable and same prices at all its retail showrooms across the country. The product line of Chhabra 555 includes the entire gamut of Indian ethnic wear for women including sarees, suit dupattas, lehangas and fabrics.
Chhabra 555 opted for the franchise route in 2005. Its growing popularity among the customers inspired the brand to expand its network of outlets. With 58 franchise outlets and two company owned units, Chhabra 555 is present across 25 cities in the country. The brand aims to reach 100 stores in the next five years, looking for high footfall places as preferred locations.
Franchise facts
Area: 1500 sq. ft
Investment: Rs 40-60 lakh
Franchise units: 58
Expansion plans (in numbers): 70 franchisees by December 2014
The Arvind Store
The Arvind Store is buoyant about tapping franchisees with right attitude, a strong customer orientation, a maturity to build long term relationships and a stable financial position.
The Arvind Store sells fabrics, readymade brands (Arrow, US Polo and Flying Machine) and tailoring services. It is a menswear destination store with fabrics straddling cotton, linen, wool and other blends and readymade brands that cover a formal, casual and evening lifestyle. The brand is currently having 73 + franchise and 50 company-owned outlets. Arvind store has a FOFO (franchisee-owned and operated) and COFO (company-owned and franchisee operated) model. In this fiscal year, the plan is to add 14 more stores in its network.
Franchise facts
Area: 1,500 sq.ft
Investment: Rs 50 lakh
RoI: Upwards of 18%
Franchise units: 73 +
Wills Lifestyle
Wills Lifestyle, ITC'c sub-brand presents a complete fashion wardrobe that complements every facet of one's personality be at work, recreational time, during parties and for those special occasions. Incepted in the year 2000, the brand offers a tempting range of designer wear, work wear, relaxed wear, club wear and fashion accessories. Wills Lifestyle comes with four exclusive range of designer wear that includes -Wills Signature, Wills Classic, Wills Sport and Wills Clublife. Wills Lifestyle has jumped into the arena of franchising. Let's find out what lucrative avenues they have in their kitty for the potential investors..
With 90 plus outlets across the country, the brand is making its roll out by adopting franchise business model of operations.
Franchise facts
Investment: Rs 50 lakh
Area: 1200-1500 sq. ft
Units: 90+
Franchise units: 20 +
Expansion plans: Pan-India
Manyavar
Manyavar started out in 2008 and is known for its wedding wear with its wide range of sherwanis, kurtas, Indo-western wear, party wear and accessories. The brand recommends franchise model for expansion as the business needs local partners for retailing. With aggressive expansion plans, the brand aims to capture 35 per cent of the market share five years down the line. Manyavar envisages the men's wear segment to show maximum growth in the organised apparel industry in the years to come.
Manyavar plans to open 10 flagship stores every year in metro cities and wants to reach 600 EBO's by 2016 from its present 325+ EBO's. The brand is present in Dubai and Sharjah and wants to further expand in the UAE. Also, after marking its presence in Bangladesh, it wants to tap the Sri Lankan, Nepalese, US and UK market.
Franchise facts
Area: Flagship stores-above 2500 sq. ft,
Investment: Rs 20-50 lakh
RoI: 25% and above
units: 325+
Expansion plan: 600 EBO's by 2016
Van Heusen
Launched in India in 1990, Van Heusen is yet another success story from the Madura Fashion & Lifestyle stable. The brand operates under license to Madura Fashion & Lifestyle in India and South East Asia. A premium lifestyle brand, Van Heusen assiduously follows the company mandate; fashion for the corporate world. The brand's target audience is the successful, sophisticated, erudite, multi-faceted professional.Van Heusen also addressed the needs of a younger consumer and a changing lifestyle one who had disposable income and the attitude to go with it. The Van Heusen range is modern, minimalistic and timeless. It is distinguished by its high quality, and its relevance to the times, neither too edgy nor too futuristic.Van Heusen aims to be a complete lifestyle brand.
Franchise facts
Inception since: 1990
Area: 1,000 sq.ft
Investment: Rs50 lakh
Total no. of units: 257
Presence in cities/states: 112 cities/ 26 states
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