In a conversation with TFW's Beny Sachdeva, Aloke Banerjee, Director, Marketing-National Textile Corporation Limited, talks about pros and cons of operating via the franchise model and what it takes to be a successful franchise professional.
Cite any example of a franchise failure.
A Rosebys master franchisee opened 32 stores in Andhra Pradesh and he had to shut all his stores because the franchisor was not doing well. This was a case where franchisee had put in more than 100 % but was not supported by the franchisor.
Take us through your professional journey.
I have been working for more than twenty years. I began my professional journey in the year 1992 as I got my first professional break at Tata Tea and spent good 10 years of my career. After that I moved to Britannia and was developing the business for their brands Maska Chaska, Good Day etc. In the same company then I was shifted to Bombay Dyeing to restructure the business development. Having a brilliant experience under the guidance of experts at Britannia and Bombay Dyeing, I switched over to S Kumars and then to Rosebys. In my current role as Director of Marketing at National Textile Corporation Limited, I am glad to look after the brand Indian Republic. NTC plans to set up more than 300 retail stores under the new brand over the next two years. Initially, the Indian Republic brand will offer only menswear, but in near future the brand will have a complete range of apparel, including womenswear.
What according to you are skills needed to be a successful franchise professional?
= The significant aspect of franchising is the support offered by the franchisor to the franchisee.
= A thorough know how of the business, so as to be able to critically and analytically judge the feasibility of the project and possibility of success in the venture.
One strategy that helped you creates a successful franchise network?
Trust and relationship with the franchisee are the keys to strengthen your franchise network.
What major hurdles have you faced while building a franchise network?
There are challenges in every business. According to me, a franchisee must understand that a business always takes time to get stable. Year one and two a franchisee has to struggle and depending on the business he starts getting returns at least after two years. In franchising business model the most challenging aspect for the franchisor is when the franchisee starts losing interest in the brand, it can be disastrous.