Business Categories
Aug, 14 2017

Asset Light Business Model: A New Trend

Asset light business model helps companies move faster and, in the long term, make them more sustainable. Here are the few trends in the following segments:

Asset Light Business Model: A New Trend

FOOD AND BEVERAGES

Lately all major F&B players are working on a low-capital intensive model rather than investing heavily in the infrastructure development and in interior, set up, decor and furnitures like QSR outlets, kiosk and cart models. Brands are now creating smaller and low investment models for deeper and faster penetration. Also, the major advantages of these low-cost kiosk and cart models are the brands saves on to heavy capital investment and also high operational cost in terms of paying heavy rentals for a much larger area.

RETAIL

In the retail segment, there exists a low investment opportunity either through a distributor model, where the investment is only for the stock deposit and a warehouse at a low rental place, or shop-in-shop model, where an investor is either taking up a space/counter space and a branding wall for stocking in a outlets designed by a third person. So, a distributor model or a shop-in-shop model is ideally a low investment model, where the investor need not invest in setting up the infrastructure or furniture or fitting.

EDUCATION

In the education sector, new business concepts are coming up in the e-learning sector, which are low-capital intensive models with minuscule investment. Also major brands are eyeing for tie-up models, where the education and services are imparted at the physical infrastructure set up by other partner, which could be a preschool, K-12 school, or a college.

HEALTHCARE

Though healthcare is a capital intensive industry, where a huge capital is required for the set up, especially, machinery and equipment, there exist a low investment model as well in the form of collection centre’s for pathology labs, where an investor can start the business with as low as Rs 5-7 lakh.

SERVICES

The service sector is full of low-cost investment opportunities like business associate model or courier services. A business associate is like a business development partner, who is just passing on the business or lead to the brand without getting majorly involved in the operations or products. The investment for a BA could be as low as Rs 10,000-50,000 for the registration purposes and the person can start operating the business at his comfort or from a small office set up.

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