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Dec, 02 2015

Cool & considerable trends that will supersede

In times of great upheaval in entrepreneurial ecosystem, the very foundations of business format franchising is undergoing changes that will transform industries and companies. The emergence of earth new business trends redefines the way business is condu

A Sunshine Business

Solar brands franchising in India:

* Madhuri Solar * Solar Basket * MF Energy * King Sun * Anu Solar * India Solar Solutions

Depleting resources and increasing power shortage are making more and more people opting for greener method of solar energy. Solar market in India, which is expected to create a lot of job opportunities and avenues for investors, could be worth billions of dollars over the next decade. The sector is also seeing fast reliance on franchising with demands growing immensely for the green business. Brands are also coming up with innovative and new solar energy products to cater to the society. Though, still the market is fragmented and much needs to be done to give life to the industry, which is soon going to be the next big thing. Presently, it's more of a business to business concept as the material directly goes to the client from the manufacturer and there is less scope for dealer, distributors or franchisees. However, things are changing and in the coming time, more investor, government and industry participation is expected to be seen.   

*Investment to open a franchise solar energy outlet starts from as low as Rs 2 lakh & goes up to Rs 50 lakh & even more.

*The total solar industry is estimated at about Rs 400 crore and is expected to touch 18.7 million by 2022

What does the solar sector need?

•    Better installation and service to boost dealers, distributors and franchisee network  
•    Government-sponsored loans
•    Manufacturing incentives from government
•    Strong association

What's going good for the solar sector?

•    Prices are going down, thus, demand is increasing
•    Indian solar manufa-cturing companies are self-reliant
•    Chinese ones are losing faith among people for lack of quality  

Diagnosing dividends

No treatment starts without any reports of the diagnosis. With rising awareness and easy availability of diagnosis brands in India, the diagnostics industry is growing exponentially and better than the overall healthcare industry. To boost their expansion, brands are tapping the pan-India market by partnering with franchisees. From metros and tier-I cities, the brands are tapping tier-II and III cities as well.

Growing market

The medical diagnostics market in India is projected to grow at a steady rate of about 15% and is likely to reach INR 401.9 billion by 2018 from INR 200 billion in 2013.

A last few years have seen entry of number of organised diagnostic brands. Dr Lalpath Labs, SRL Diagnostics PVt Ltd, Thyrocare Diagnostics Pvt Ltd are among the major players who have a wide presence in the country.

Why franchise partner?

*Helps to optimize and maximize the resources
*Helps reach out to tier-II and III towns and overseas

Investment
Minimum investment to run a franchise diagnostics centre starts from about Rs 2 lakh with area of around 200 sq ft

Who are preferred franchisees?

•    Have capital to invest
•    Have local expertise to offer quality services
•    Anybody with pathology expertise, accreditations, scale and spoke model, marketing and sales support, technical support, customer care

Tech set go

Since, a brand cannot be present at all key locations in less time and needs a large workforce as well, thus, this has given a birth to the technology franchise industry. Any individual with a basic knowledge of technology can operate a franchise centre. A large percentage of technology entrepreneurs are young in India and are fast expanding pan-India.
A person can take a technology brand franchisee with an investment of about Rs 50 thousand to Rs 15 lakh and above.

How does it work?

There are primarily two ways in which a technology franchise is given. Some of the franchisors train their franchisees under their certification programmes and create certified partners. And the other partners are resellers who buy products from franchisors.

RoI?

Technology sector offers lucrative returns on investment. A franchisee can expect around 70 to 100% returns on investment.   

*The IT-BPM (business process management) sector in India is estimated to expand at a CAGR of 9.5% to US$ 300 billion by 2020- India Brand Equity Foundation

Recycle reveneues 

Have you ever thought of making money out of scrape or electronic waste? I am sure your answer would be no. But, scrape or recycling businesses are in much demand and one cannot run out of money as the concept of recycling e-waste is completely new concept and is franchisable as well. These days, professional e-waste management companies are setting new benchmarks through innovative and environment friendly disposal practices.
They are also offering seamless integrated solution for e-waste management and thus creating business opportunities for prospective franchisees that are looking to invest low and make best of returns in business. A business opportunity is available for existing e-waste scrap merchants, kabadies, scrap dealers, service centres, retailers, graduates and under-graduates who are willing to enter the e-waste management segment.  

*Presently, the market size of e-waste in India is of 3.2 million MT and expected to touch to 20 million MT by 2020. In terms of value, it is presently of Rs 25,000 crores industry which is expected to touch Rs 125,000 crores by 2020.

*An investment of Rs 7 to Rs 8 lakh would be needed to set up a scrape or recycling business. Franchisees can expect 50% return-on-investment within this business segment.

Brands: Eco-Recycling  Ltd that operates through its brand Ecoreco; GOBOL, a venture of Attero Recycling Pvt. Ltd

Fuelling profits

Have you heard of fuel stations entering into franchise business? No, then it will take you by surprise that fuel stations are now following the franchise route for strengthening their pan-India network. Fuel stations are now-a-days seeking franchise holders for managing their petrol pumps across the country. For instance brands like Essar Oil pioneered the concept of setting up retail outlets using the Franchisee-Owned Franchisee-Operated model whereby the franchisee leases his land to Essar for a period of 30 years and invests in setting up the infrastructure of the outlet. Essar, on the other hand, focusses on enhancing the franchisee's business by supplying high quality petrol and diesel and adding other profitable business lines including a lease rental on the land and sales commission, non-fuel retail options, and performance-based returns on our dealer's investment made to construct the fuel station so as to keep the franchisee's business viable at all times. In fact, the oil marketing companies are in talks with the government to allocate dealership  to anyone willing to open a fuel station within the country.

Quick facts:

India has about 53,000 petrol pumps with 95% of them under the control of state firms. According to 6wresearch, a market researcher, the total global market size for robotics in education is under $500 million.

Brands that are looking for franchisees in fuel stations include:
•    Essar Oil
•    Reliance Industries
•    Shell Retail India

Fast & casual returns

Fast casual food and beverage is a relatively fresh and rapidly growing concept positioned within the fast food restaurants and casual dining restaurants. It is technically the hybrid of the two eating concepts. It provides counter service and offers more customised, freshly prepared and high quality food than traditional QSRs in an upscaled and inviting ambiance. With minimum table service, the fast casual restaurants generally do not have drive-thru outlets. The category is fast growing with Indian, Mexican, Italian and American brands entering the Indian market.

Franchising in fast casual segment:  
•    Investment starts from about Rs 5 lakh and may go up to 1 crore
•    A franchisee can expect around 20 % RoI
•    Most  brands in this category prefer franchise route

What franchisees get?

•    Highest quality, tasty products
•    Professional sales, marketing and training support
•    Mutually beneficial partnership
•    Get all the right content

What franchisors get?

•    Franchisees provides the local connect
•    Helps in easy pan-India expansion

Factors driving fast casual concept

•    Consumers are looking for food solutions on the go
•    Higher disposable income and higher propensity for consumption and experimentation
•    Advent of foreign QSRs in India and easy access to world class food and services at an affordable price
•    Availability of multiple choices
•    Exposure to global culture and changes in the demographic profile
•    Seeking value for money and taste

Fast facts
•    Indian fast-food industry is expected to double in size between 2013 and 2016, to $1.12 billion (Economist Intelligence Unit)
•    Food and beverage sector is measured by 26% growth year-on-year

21st century education concepts

Education industry is one of the most profitable segments that has the capacity to drive profits for franchisees. It's a recession free business opportunity for getting best of returns on investment (RoI) in business. Statistically, RoI differs from brand to brand but if you are looking to invest low amount, then spending on portable labs or labs offerings K-12 classroom teaching through robotics training can turn out to be a profitable opportunity for schools and edupreneurs.
Portable labs are accessible and highly cost effective. The concept of portable science labs is new. It is expected that it will pick up pace within the education industry as educationists believe in incorporating new tools and teaching techniques to make subjects more interesting and allow access which further encourages students to perform experiments and participate in classroom.

Those, who are passionate about modern educational techniques, will pave a way for niche concepts like robotics training to bolster profits. It helps in making k-12 classroom teaching more interactive and has the potential to drive profits for franchisees in many ways.

For setting up portable labs and training facility for robotics training, the investment starts from Rs 85,000 to Rs 25 lakh. The franchisee gets payback within a span of six months to two years. And, in nano labs business, one can get 30% RoI.

Aroma of tea cafes

Though coffee chains rule the roost but if we talk about the Indian market, tea is undoubtedly the favourite drink and a staple beverage for one and all. As India has rediscovered its love for tea, the market is now brimming up with exclusive tea cafes, lounges or bars that are offering a unique business proposition to the prospective franchisees. So far, the tea industry in India has not been explored well hence, it holds a huge growth potential that needs to be tapped fully.

Brands that are offering franchisable opportunity to the franchisees are:

   Wagh Bakri Tea Lounge
•    Tea Trails
•    Chaayos
•    Chaipatty

* For opening a tea café, an investment starts from Rs 25 lakh to Rs 30 lakh onwards. The franchisee gets 40% RoI in tea café business

* According to data from Euromonitor, the packaged tea market in India is estimated at a yearly Rs 12,600 crore and expected to reach Rs 17,600 crore by 2019.

Clean profits in car wash

The Indian car market is growing at around 10% annually. It is estimated to be the fifth largest in the world by 2025 and will have the highest number of cars by 2050. Thus, car wash brands have a huge scope in this sector. Car wash service is likely to exceed $27.4 billion by 2017 globally. The growth is due to ever-rising sales of cars and secondly because people prefer a professional solution for best results in the shortest possible time. In India, it is just at the threshold of picking up. Of late, the car wash industry has gone hi-tech adopting sophisticated high impact pressure jet wash technology. The fragmented industry is fast turning into a professional sector with a huge demand coming from metro, tier I, II and even smaller cities. A look at past few years shows rising number of specialised car wash brands coming in and franchising to spread their operations pan-India.

Quick facts

•    Indian car market to be the fifth largest in the world by 2025
•    Car wash service is likely to exceed $27.4 billion by 2017 globally
•    Around 80% are unorganised players
•    Most of domestic brand thriving, foreign players are also expected to come in a big way in the near future.
*    For opening a car wash outlet, a franchisee requires an investment which starts from Rs 5 to 50 lakh and above

Car wash brands offering franchising:

•    Exppress Car Wash
•    Autozspa
•    Carzspa
•    Speed Car Wash
•    Auto Maxx
•    The Car Laundry

E-commerce on the run

E-commerce industry in India is growing tremendously and franchising in e-commerce is another sector which is attracting a lot of investment. Having an omni-channel presence has become the core strategy of many brands as it helps them to offer convenience to customers anytime or any where around the world. Considering the pros of franchise mode, purely e-commerce brands have lately entered the offline space with the launch of their exclusive stores in top cities of India. Interestingly, these brands took the franchise way to set up their physical stores. The industry has a lot of potential which is why it has a presence on both the avenues. E-retailers are hopping on franchise bandwagon.

Morgan Stanley expects the size of the Indian internet market to rise from $11 bn in 2013 to $137 bn by 2020 and market capitalisation of these internet businesses could touch $160-200 bn from  $4 bn at present.

E-commerce labels that took franchise route are:
•    Firstcry.com
•    Lenskart.com
•    Caratlane.com
•    Fab Furnish
•    Craftsvilla
•    MakeMyTrip
•    Car Trade

Hair is the booming business

Hair” is an opportunity in the entire beauty business. Whether its hair restoration franchise, express hair salons, hair blow bars, hair salon training academies, hair beauty retail, opportunity in this sector is growing by leaps & bounds. The salon business is a high margin business as even if a brand subtracts all the major expenditures covering staff, property lease, electricity and equipment even then one can earn 40 per cent in the business of hair beauty salons.
Business partner requisites to start a hair restoration/ hair salon express franchise. A potential franchise partner must have good local contacts/network, belief in ideology of the company, long-term commitment to grow with a brand and also must invest time to grow the business.

Fast facts:

Area: Around 400-500 sq.ft
Investment: Around Rs 15-50 lakh

Factors leading to demand
•    Increased urbanisation
•    Rising awareness
•    Growing disposable income
•    Rising aspirations

Huge market On the basis of revenue generated, TechNavio's analysts forecast the Professional Salon Care market in India to grow at a CAGR of 27.07% over the period 2014-2019.

Celebrity–backed fitness brands

Have you ever thought, what is common between Mahendra Singh Dhoni and Virat Kohli? "they both are cricketers” you are abolutely right but; the other thing they share in common is that they both have ventured outside their comfort zones to give wings to their entrepreneuail dreams. Besides having a successful career in cricket, they went beyond and carved a niche in the world of business by launching their own brands. Both the sport celebrities have launched their brands Sportsfit and Chisel lately and are exploring franchise model to strengthen their presence across India.
These days, celebrity backed businesses are in. Besides having fame and fortune, celebrity-based businesses have direct reach and huge fan following around the world which makes it possible for the brand to fetch profits their way. The brand enjoys footfalls and franchisees get better returns on investment. If you’re looking forward for a money spinning opportunity then, hopping on celebrity backed businesses, will be the right choice for you.

•    Franchisee conversion for fitness brands backed by celebrities is 15% higher as compared to other franchise chains.
•    Celebrity association with the brand makes it possible for franchisees to be profitable in a quick span.  

Brands:

•    SportsFit by Mahendra Singh Dhoni
•    Chisel by Virat Kohli
Celebrity backed franchise fitness centre starts from Rs 1 to 3.5 crore

Kids’ fitness

Franchising in kids fitness brands is booming. 75% franchisees in kids fitness sector are women. With changing lifestyle and eating habits coupled with disposable income, more and more parents are becoming conscious of fitness of their kids. This has led to the mushrooming of several brands which are focusing on developing skills, mind and fitness of the tiny tots. The brands have several fun-related activities related with music, dance, different ball sports, early physical education, pre-gymnastics classes and so on to take care of the fitness of children.

What age is ideal?

Some brands do this activity for kids between the age group of 6 to 16 but some even start from age group of 2 to 13 as well.

Investment for franchisee?

With an investment of about Rs 3 to 20 lakh, one can run a franchise kids fitness/activity centre.

Quick bites for franchisees
•    Try to tie-up with nearby schools
•    Open a franchise centre in an area which has a good population of kids Choose kids’ fitness franchisor
•    SportyBeans
•    JumpBunch
•    My Gym
•    Jymka
•    Kindergym

Fast bucks @ ease of home

26-year-old Reema had to quit her regular MNC job after marriage due to few reasons. At that moment someone suggested her to hunt for good business options that can be operated from home. After months of searching, she settled down on a business of tiffin and lunch services from home and is fetching handsome money now. Many of us are tired of our regular jobs but cannot find the right opportunity for ourselves. The rising competition to earn and desire to be financially independent has given a rise to equal business opportunities for both genders. Franchising is on a rise in work from home industry.

Indore-based Khilonewala is a toy Library which rents Toys, Games, Books, CD’s, VCD’s and Outdoor games to kids of age group between 1 to 12 years since 2011. It’s Founders Abhishek Jain and Bharat Jain inform Franchise India “Khilonewala Library can be opened from home and leading to very low operational costs. In Khilonewala, we need to deal with parents only and need to explain the concept to them by telling various aspects of our library and how we operate. Space required for starting library is only around 150-200 sq.ft”

The investment is as low as Rs 2.25 lakh and can go upto Rs 3.75 lakh depending on the city type and population.
A franchisee can earn anything between Rs 30,000 to Rs 1,25,000 depending upon the number of members serviced in your territory.

 

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