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Jun, 07 2014

Regional champs

India's renowned regional franchisors are primarily in the retail and food & beverage sector. Regional franchisors seem to have better success in their own regions, primarily driven by tastes and requirements, according to communities and cultures. Which

If you are travelling to Mumbai from Punjab, you would prefer eating at Mumbai's best outlet that serves region's delicacy rather than grabbing a McDonald’s burger. Regional brands have their own significance and hold a very special place for its local patrons.

Now spare a thought for companies  like Jumboking, Saravana Bhavan, Natural Ice Cream. They may not ring a bell in uptown India but these robust franchisors in their respective regions are the favourite brands for localites and are mounting their numbers to have a strong presence in their own region.

Indeed, as data from Franchise India indicates, western India has witnessed the maximum growth in the last three years. There was 40 per cent growth which franchisors have witnessed in the year 2013 compared to 37 per cent in the year 2012.

The Southern region has also seen a remarkable growth of 38% last year from 21 per cent in the year 2012. These figures indicate strengthening of regional franchisors in the south and also foray of other brands in this region.

Which sectors tops the priority list?

India's renowned regional franchisors are primarily in the retail and food & beverage. Regional franchisors seem to have better success in their own regions, primarily driven by tastes and requirements, according to communities and cultures. This has enabled local players to build strong brands over time.  Local marketing techniques, franchising business model and efficient supply chains help the brand become strong in their own regions, but when moving out of their own regions these established regional franchisors are still facing challenges.

Malls  a growth factor for regional franchisors

According to the latest report on the retail potential of Indian cities, from the real estate consulting firm of Jones Lang LaSalle (JLL) India, The seven major metro cities are Mumbai, Delhi and the National Capital Region, Bangalore, Pune, Chennai, Kolkata and Hyderabad. The next 13 emerging tier-II and III cities seeing growth in retail market potential and maturity are Ahmedabad, Chandigarh, Surat, Amritsar, Nagpur, Vadodara, Coimbatore, Ludhiana, Lucknow, Jaipur, Indore, Kanpur and Raipur. The report compared retail attractiveness of the top 20 cities for the years 2011 and 2013. Apart from Ahmedabad and Chandigarh attaining high retail attractiveness in 2013 as against 2011, Surat moved ahead of Amritsar in terms of retail market potential.

Many of the regional franchisors have agree to the fact that last five years the number of malls have almost doubled leading to opening of more stores. Malls are the chosen destination for retailers now. Almost all the brands into franchising are targeting malls for their venture. One can find various franchisees moving to malls from markets to cash in on the trends.

“Going to the malls is beneficial but it is about revenue sharing. If one is not getting revenue sharing, then it could be a coslty affiar,” comments Jagdeep Chhabra, MD, Chhabra 555 Fashions Pvt Ltd.  

Conclusion

In the following pages there are regional franchisors handpicked and also a detail about regional franchisors who are already national players. Whilst many of the regional labels are keen to make a national play, a few of the brands are still holding back their expansion limiting to their region only.

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