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Jan, 06 2018

SERVICE-BASED OPPORTUNITIES TO TAKE FLIGHT IN 2018

Crushing all your excuses to not starting your own service business today, we bring for you five potential markets to look out for in the coming year. A report by Zarafshan Shiraz

SERVICE-BASED OPPORTUNITIES TO TAKE FLIGHT IN 2018

With convenience riding the back of consumers, preference for faster and cheaper means to complete a task without compromising on the quality is now foremost. Successfully catering to this need is the coming year which will be abundant with such business service-based opportunities. This boom, which is constantly churning out entrepreneurs, is fuelled by the increasing disposable income of the growing middle class. Crushing all your excuses to not starting your own service business today, we bring for you five potential markets to look out for in the coming year. A report by Zarafshan Shiraz

Laundry and Dry Cleaning

The last 20 years have seen some exciting developments in retail laundry which otherwise had remained outdated. With this market in India currently standing at USD 76 billion, its USP lies in the overall focus on technology, quality and doorstep convenience – doorstep pick and drop services – which are also driving the overall growth. “The Indian laundry market is still heavily unorganised (up to 97%) and is largely controlled by close to a million mom and pop operators, traditionally known as dhobis,” says Arunabh Sinha, founder and CEO of UClean. “Overall, the industry should continue to grow at a healthy rate of 13% to 14% per year and would mirror the growth of the apparel industry,” he assures.

 

Franchising Facts

  • Total stores: 22 stores operational and 50+ signed up
  • Investment: Rs 19-20 lakhs
  • Expected return on investment: 70%
  • Area: 250 sq. feet.
  • Expected breakeven: 18 months.

 

Shoe Mending

Given the population of India, spending power and appetite for expensive branded shoes clubbed with a complete absence of professional cleaning and after-sales service, the potential offered by the shoe mending industry is immense. It is only expected to grow as people are never going to stop wearing shoes and as long as shoes get dirty and need to be fixed this service is going to be needed. Tapping into this new and emerging service industry, many players have developed a great business model through franchise. “Franchising is the best way to make this service widespread. Most other opportunities are over-crowded and some even saturated. This is a new and unique opportunity with limitless potential,” asserts Sandeep Gajakas, Founder, Shoe Laundry.

 

Franchising Facts

  • Total stores: 11
  • Investment: Rs 5-10 lakhs
  • Expected return on investment: 100%
  • Area: 250 – 300 sq. feet for workshop-based model, 400 sq. feet for retail + workshop model
  • Expected breakeven: 6- 9 months.

 

ATM Franchising

ATM franchising is an opportunity for people to fetch additional income with minimal or no efforts. “The USP of model lies in the fact that since the franchisee remuneration is based on the transactions at the ATM, the franchisee is always enthused by the idea of better returns with the increase in transactions as opposed to fixed rental in the traditional model,” explains K R Bijimon, Chief General Manager, Muthoot Finance. For ATM operators, he says, a sense of ownership gets dwelled in the franchisee with the very nature of the model, leading to a better performance that makes the model a win-win one. With the increasing thrust on digital payments, ATMs are gradually expected to evolve from pure cash dispensing machines to multifunctional terminals capable of supporting a gamut of value-added services like interoperable cash deposits, card-less withdrawals, bill payments, financial instruments like pre-approved loans and credit cards, insurance, etc.

 

Franchising Facts

  • Area: 30-40 sq. feet (shop in shop); around 60-80 sq. feet (counter ATM)
  • Expected breakeven: 100 plus transactions on a daily basis.

 

Car Washing

With an Rs 100 crore market held by the organised players and Rs 200 crore by the unorganised (small, standalone stores and roadside polishing stores), the car detailing industry is massive pan-India. “This has been brought about by awareness in the society where taking care of your asset has become the talk of the town and giving it a shine has become more of a style statement,” says Hiten Desai, CEO, The Silver Lining. In the organised market segment, people have the stores nearby their areas, offering a doorstep delivery service. Added to this is the experience of sitting in a good car which is clean, has no scratches and shines like new. According to Desai, this sector is estimated to grow to Rs 2,000 crore in the next five years.

 

Franchising Facts

  • Investment: Rs 10 lakhs
  • Expected return on investment: 133%
  • Area: Minimum 600 sq. feet
  • Expected breakeven: 1 year 4 months.

 

Pet Day Care

Almost 80 million homes in India own a pet, summing up to over 100 million pets in total. Their need to be kept clean, have a place to sleep and be cared for makes for a booming business. As of 2017, 65% of households in India own at least one pet, and the pet industry is made up of the products and services that keep these pets alive, healthy and happy – food, toys, daycare, training, beds, cages, medical services, and a lot more. While pets are found in households of all economic levels, high-income households account for about 60% of the total spending. “A number of trends are supporting strong growth in the industry and they show no signs of slowing down – namely, pet care and grooming, veterinary clinics, pet accessories and the pet food industry is booming year by year,” confirms Priya Poduval, co-founder of Peppy Paws.

 

Franchising Facts

  • Investment: Rs 40 lakhs
  • Expected return on investment: Minimum 10-15%

Area: 1,000 sq. feet.

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