Seeing the growth and demand of international brands in Indian market, India’s wellness entrepreneurs are willing to take international brand’s franchise. Here is few tips from industry expert for wellness entrepreneurs.
Introducing a globally renowned brand to Indian marker is no kids play. The entire process requires a lot of fresh brand building and promotional activity to educate and lure local consumers.
Due diligence in defining your strategy ahead of time, while setting realistic goals and gaining a solid understanding of your target audience, will help you make a good first impression in the market and as you know, it's the first impression that counts, here is some essential tips from ,Istayak Ansari, Director and Co - founder Lloyds Luxuries Ltd who has brought London-based Truefitt & Hill, one of the oldest barber shops in the world to India.
Here are 5 recommendations to bring a global brand to India.
1. The brand you are bringing to India should be Unique and have Proven Business Model in more than one country.
2. A growing chain is always preferred over a stagnant chain or one facing the growth or closure of outlets. Last 5 years expansion by the company will reflect where the company is headed.
3. The support and technical know-how provided by the franchisor.
4. Flexibility of the franchisor to tweak and adapt the model for the Indian market to make the business viable.
5. Once we are convinced on the above four points, then we proceed to commercial negotiation.
Key points in a Master Franchise Agreement that need to be negotiated, keeping viability and profitability in mind are as follows:
- Master Franchise Fee
- Royalty per store payable to franchisor
- Number of outlets to be opened during the agreement period by master franchisee.
- Tenure of the agreement.
- Renewal fee
- Tenure of renewed period
- Termination by the franchisor
- Cost pertaining to support provided by franchisor
- Any things that need franchisor’s prior approval and timeline for the same to maintain smooth running of operations
- Protection of master franchisee exclusivity in the designated territory during the contract period
- The territories for which you take master franchise rights
Here, He can give tips or suggestions to wellness professionals who want to tie-up with international brands to make their entry easy in Indian market.
Tips to wellness professional who wants to turn Entrepreneur
1. Before you take the plunge, you need to have thorough knowledge of running a business involving all trade aspects. You have thoroughly researched the market and have the funding and business model in place.
2. You need to have like-minded and sound finance partners on board who are equally passionate about the business and have good experience of running a business. Do not oversell the bunnies concept to your partner. It does not work in the long run. Do not have too many partners.
3. Make sure you have enough savings to run your house and fund your business. Always keep in mind that new venture take time to stabilize and generate profit. In business, you need to have patience and passion to grow.
4. To create your own brand or take a franchise is a personal choice. I recommend, if you are well funded, create your own brand or take a Master Franchise rights for a territory. If you have limited funding, then it's always advisable to take a franchisee of a brand, which is well established and have a proven business model. The success ratio in a franchise model is more than 85 per cent.
This article is written by Istayak Ansari, Director and Co - founder Lloyds Luxuries Ltd as per his personal experience, research and studies.