FRANCHISING IN INDIA

Franchising In India

Franchising - The fastest Growing and ever changing Industry in India

Though at a nascent stage the industry has witnessed 30 to 35 per cent growth in the last 4-5 years

                                   Home to over a billion people, including a flourishing class of urban consumers possessing considerable amounts of disposable income together with the continued growth of the economy have strengthened India’s claim to be a viable and beneficial destination for a foreign franchisor. In the USA, almost a third of the retail sales come from franchised outlets, with sales of trillion of dollars while in India, the industry is few million.

                               An important aspect which determines the feasibility of any franchising business in a country relates to the class of consumers it caters to. India is a multi ethnic country with the second largest population in the world. Indian consumers have experienced the standard of services offered overseas and have sufficient exposure through media, which has further fuelled their expectations.

• There are approximately 1150 national and international business format franchise systems in India in 2007.
• Around 8 to 10 per cent Indian franchise systems have entered international markets.
• There are an estimated 70, 000 units operating in business format franchises.
• The growth rate in franchised units from 2005-06 to 2006-07 was 30 to 35 per cent for the last 4-5 years.
• Some 500000 persons are employed in business format franchise organizations.
• Franchising contributed less than 4 per cent to India’s Gross Domestic Product (GDP) in 2007.
• Annual turnover is approximately us$ 4 billion.

                         Almost every product or service has a market in India but sometimes, innovative strategies like “Indianisation” of its products and marketing techniques must be employed by a foreign franchisor to further access the sizable market of India. In a franchised business, over 90 per cent succeed. This success rate usually lures entrepreneurs with no experience but with a surplus capital and a will to succeed towards franchising. The franchisee benefits from a tried tested and proven business concept, which can dramatically reduce the chances of failure.

Franchising potential in India:

                               Though the Franchising in India is at a very nascent stage, but this industry has clocked the growth rate of 25-30 per cent, the second fastest growing industry. Organized retailing though only at 6 per cent of the retailing, will take off in a very big way. The Indian middle class is slowly expanding and now buys consumer appliances with more disposable income. India offers lot of potential for the franchising community. Apart from Indians being very entrepreneurial, franchising as a way of doing business has been well accepted.

http://www.franchiseindia.net/

http://www.franchiseindia.com/ 

Chairman's Note

THE WORLD'S JUST GOT BIGGER!

Gaurav Marya
Chairman,
Franchise India Holdings Ltd.

 

 

                                   The “Franchise” in Franchise India 2011 show is growing year on year. We have endeavored to make your attendance at Franchise India 2011 an holistic Business occasion amidst all the “Opportunity”, “Knowledge & Advisory” & “Networking” intended for you. As a Prospective Franchise or Business Opportunity investor you can liasion with hundreds of superior Indian & Global brands and out of the box ideas. We have also made a concious effort to present such opportunities that will make their very first appearance in the Indian marketplace. As regards networking whether you want to buy a franchisee or franchise your business you will get every answer & meet every person who matters in this business during the course of these two days.

Franchise India 2011 is more than just a Business exhibition. Whether you are thinking of starting a business or you’ve started one recently or are in the early stages of enterprise growth, the show in its entirety will allow you take advantage of growing your Business initiative to the next level. Make the most of your time by exploring over 300 Business Opportunities covering over 75 industries showcasing services, products, and information for initiating or expanding a small & mid size bussinesses.

Learning from highly relevant conference & workshops on Entrepreneurship, Franchising, Retail & Licensing. Attending the free Fran Talk seminars to get quality advice to start up or grow a business

• Networking & getting free legal advice at IFA Lounge
• Explore the leading master franchise Business Concepts from overseas
• Global experts will also be running workshops for franchisors and future franchisors
• Get your business idea qualified for VC or PE funding
• Please stop by at our Franchise India booth where our Matchmaking team can assist for your one – to- one tailor- made meetings with exhiibting brands.

I congratulate you on taking your step towards initiating your business dream and coming to the Franchise India Show.And last but not the least, I would like to share the Franchise India Mantra, for you to evaluate all the business opportunities in three pronged mechanism of Information – Evaluation – Negotiation before you make your final choice to invest in a New Business.
HAPPY FRANCHISING