The franchise industry is growing exponentially in today’s time; you can see every industrial sector is expanding through franchising. Competition is high, new companies are taking advantages of technology to increase productivity and profit margins. There are over 3000 brands actively present in Indian markets that offer franchise opportunities in sectors include food & beverage, retail, fashion, health & beauty, jewellery, etc. The industry is playing crucial in economic development as many get employment opportunities. Indian economy is highly depending on agricultural activities but over past few years, industrial development is also observed. People are willing to spend money and also desire to start own business. Franchise sector encompasses broad range of models, you can choose from different categories. For example, Connect Franchise is leading franchise consulting organization which has developed online portal where you can search different brands easily.
You should consider following things before investing in franchise:
- Financial planning: In today’s fast changing lifestyle it is quite difficult to retain customers for longer time period. While choosing any franchise brand check investment plan, current market value and also analyse company’s future planning. As per reports, every year dozens of franchise enter into Indian markets in order to fulfil customer needs and wants. Hence consistent innovations and marketing strategies are essential to make customer happy and satisfied.
- Brand value: People attract towards popular brand name. For example, if you are looking for fast food business then choose popular brand which has gained reputation in market. Do proper research and systematic market analysis before investing in any brand. Connect Franchise will assist in every single step, it provide cost-effective services, resources and customized tools.
- Marketing: In this competitive age, digital technologies are playing significant role. Organizations are focusing on digital channels such as SEO, social media, website, e-mail, etc. to promote products or services in local markets. You should ask franchisor about marketing and training support.
- Management: A successful business would only establish when your management skills will good. Several multinational franchise companies also assist franchisee in finding suitable location and help in management activities as well.
Franchise sector is mainstay of economy, Indian government is constantly analysing international markets but do not impose any specific laws over franchising. Massive opportunities are generating in India markets, global brands are providing wide range options to investors. On the other hand, domestic brands are also trying best to enhance productivity.
There are endless business opportunities when talking about food and beverage franchise segment. Over a decade, technological advancements have changed whole ecosystem and a play a crucial role in cementing economic condition of the nation. Global Market size has been gradually increased consecutively; new operators are basically focusing on latest trends and opportunities to establish highly competitive brands. Market is expected to be US $ 3 to 4 billion in 2017 and lots of employment opportunities will be generated.
Present market statics
Food – This sector is dramatically changes as per consumer preferences and choices. Indian is among leading exported and consumer of food items. While talking about unprocessed segment then 35 to 40 % market is dominated by organised players. Huge opportunities, fast-expanding market and growing technologies are reflection of massive demand for both processed and unprocessed food items. Food processing industry is of significant for economy as number of people depend for livelihood. Market is expanding at good rate approx. 20-30 %. Furthermore, government has shown great interest on organic farming to produce healthy food items.
Beverage – Urbanization, increased income and changing lifestyle is influencing growth of beverage industry in India. Coca-Cola, PepsiCo, patanjali, etc. are leading supplier of beverages. At this time, tough competition is offered by existing players but still there are massive opportunities for individuals who want start own business. Alcoholic and non-alcoholic beverages are segments which are growing extensively. Rise in awareness regarding branded products among consumers is good for international brands. In addition, coffee and tea market has witnessed high growth rate. Food and beverage sector is growing at rapid rate, you can start own business through franchising route with great acclaim. As per reports there are around 1000 franchise units are actively run across the nation.
Entrepreneurs who want to start own business should focus on franchise model if they are inexperience. Connect Franchise is providing amazing business opportunities as well as provide comprehensive support to establish new ventures. Food and beverage remain the biggest sector in terms of revenue generation and market size. Young generation is constantly demand for sophisticated services, best food zones and cafeteria. Before investing any brand analyse whole market share and then evaluate current market position and consumer demand. Ready-to-eat foods constitute a specific part of India’s consumption basket. On the other hand technology is playing huge role in establishment of franchises. Some of the companies provide best business models.
Have you ever thought that health and beauty franchise sector will be vital most-demanded in present time? People are giving significance to health and beauty products for remain healthy and fashionable. The market is burgeoning and is expected to generate billion dollars revenue in coming years. From cosmetics to hair care products, ayurvedic to modern medicine products, each and every product has its own importance. Spending on health and beauty products have been gradually increased due to high demand. For instance, people these days are more concerned about their appearance and want to look beauty, willing spend large amount. Both and men and women show great interest in visiting salons to maintain their looks. To remain healthy many people invest in fitness clubs or centres membership. If you want to join these fastest growing sectors then no other route could better than franchise.
- Purchasing power – Things are changing instrumentally, spending on daily routine activities has been rapidly increased. For example, in salon normal hair cut is around INR 100 to 200 and if want special services then cost would rise. Women and men’s grooming products are costly; from normal face lotion to various makeup items continues to produce.
- Recession proof – Individuals will never stop buying beauty and health products. In recent years, expenses on massages, hair treatments, skin care, etc. is exponentially amplified. Hence it is one of the most profitable sectors to invest, you can earn lots of profits as needs and wants are endless.
- Globalization – Western culture is impacting Indian societies a lot. Young generation is demanding branded products, sophisticated services that means there is abundant opportunities for beauty salons, skin and hair care professionals. Indian population is about 1.2 billion, second most populous in the world, massive business opportunities will be created in forthcoming future.
- Modern lifestyle – As population get older they will need modern-day healthcare like physiotherapy, massage therapy, acupuncture, etc. In addition, youth is focusing mainly on fitness centres and exercise classes to remain fit and fine.
These are few of the fundamental reasons for rapid growth. This booming industry has been regarded as fantastic way to generate huge revenues. If you want to start a salon or a fitness centre then find a franchising opportunity. At present there are several brands that offer lucrative franchise opportunities as well as provide assistance in training & marketing. A new career waits for you.
Thinking to start a business is always a difficult task as you’re not an experience contender, the real battle starts when you decide for specific industry, sector and geographic location to set up new business. You need to consider different points such as strategic planning, finance, risk involvement, ROI, breakeven point, a brand name, products or services, target market, etc. A team of experience professionals is substantial for assortment of marketing and operational activities. Without team efforts it is quite hard to achieve desired goals and objectives in limited time period. For over two decades, market condition has been changed a lot. Technological advancements and automation plays important role to commence new projects in competitive marketplace. Any type of business demands systematic market research, you need to know what customer demand and how you can meet these demands in that specific region or location.
Hence, franchise business is best way to penetrate local markets if you don’t want to spend much time in above mentioned points. A franchise is cost-effective and proven track for passionate entrepreneurs who want to invest in different sectors. Following points that you should focus are:
- Competition in market
Before investing in any franchise, you should analyse different companies that offer good profits margins and provide extensive training and marketing support. It is essential to circumspect whole market for developing products or services.
- Latest opportunities – Indian marketplace is already highly complex, thousands of franchise units establish in all corners of the country. Always focus on major requirements of people and then develop search for best opportunity.
- Be passionate – A successful business is only established when you’re passionate to bring revolution in present scenario. Prepare an effective action plan to implement strategies in practical world.
- Feedback – Take feedback from customers on regular basis for further progress. Additionally, you can conduct surveys or online questionnaire to get consumer views on current market position.
Franchise business is always profitable as well as money-making. You can’t depend on franchisor for everything; improve your own entrepreneurship skills to make effective changes which are good for business in coming future. To have a victorious business, it is fundamental to concentrate on latest trends and market condition. In addition, you can also make of advantage of franchise consultants for choosing best brands that offer amazing services. Connect Franchise is leading franchise consulting organization that offer cost-effective as well as quality services.
The Indian food & beverage franchise sector faces challenges due to constantly changing choice and preferences of consumers. This segment is fundamental for economy as it provide employment to huge number of people. Here are few things that should be looked after for successful business in F&B segment:
- Changing demographics, choices and preferences: Many multinational companies are generally focusing on young generation because they are more excited to explore new food culture and recipes. Demographics changes shouldn’t be underestimated for develop popular foodservice business. F&B sector is highly competitive as well as optimistic, as per reports food processing sector is expanding rapidly and there is huge scope of growth.
- Huge opportunities – Companies that want to penetrate global markets can make effective action plan and global strategy to reach new customers. New technology, skilled workforce, quality infrastructure, and effective distribution channel are significant drivers of food and beverage franchise sector in Asian and European countries.
- Innovations – In this competitive marketplace, you need to consistent innovations in order to give tough competition to counterparts. To launch new products into national and international markets, strategic planning and innovative techniques could be beneficial. Food is vital as well as beverage is essential for flavour.
- Market competition – Foodservice sector in India grow majorly in metros, and tier 1 cities. Multinational brands primarily choose populous cities for new ventures. For new entrepreneurs tier 2 and semi-urban would be best to test business model and to know about competition in markets.
These are few things that you should know for starting new business in India. One of the major facts is that people these days are concern for freshness and cleanliness; they want to spend money but in return expect top quality services. Wide range of emerging sub-categories encourages new entrepreneurs for starting new business. Food & beverage franchise sector is growing phenomenally, moreover some Indian brands like Box-o-burger, Chatar Patar and Andeywala has bring new recipes and quick service restaurant formats in tier 2 and semi-urban areas as well. Urbanization is a key factor responsible for changing consumption pattern and lifestyle standard. New foodservice players should take advantage of latest trends and opportunities to become next market leader. Global F&B sector is burgeoning and is estimated to grow around 10 % in coming years. You to do systematic market research and choose right franchise partner to minimize risk and maximise profits. Make changes are per customer needs and wants on regular basis.
Franchise system can be effective ways to expand well-established business in competitive markets. Organizations that focus on franchise model should consistently evaluate market to collect valuable data to develop business as per latest trends and opportunities. For instance, after successful early years you require investment to replicate business in new territories. Through franchising it is easy to create brand awareness; you should choose passionate franchisees that show interest in your business model. Small and medium size enterprises can franchise their business, here are few tips that you should look:
- Know your business – At present condition, franchise model is outstandingly used to expand business by entrepreneurs or companies in various industrial sectors. Food and beverage industry is highly competitive, franchise model is best for food franchise operators. Subsequently you should analyse how franchise fits into your current business model.
- Franchise concepts – If you’re new to franchise world then contact franchise consultants for better guidance. For example, Connect Franchise is leading franchise consulting firm that offer phenomenal services and tools. You should know how legal documents and franchisee fee is measured.
- Right franchisee – Franchisee is individual or company that invest in your business and replicate it in other locations. Choosing a right franchisee is crucial for business and also to create brand value. For example, if franchisee performs well maintain standard then automatically people will attracted towards your brand.
- Business and action plan – In this competitive age and day, you need to work as per consumer choices and preferences. If you’re in foodservice business, you need to respect consumer feeling and pay attention to their needs and wants on regular basis to remain best foodservice brand. All action plans should be cost-effective, and profitable to promote brand in new locations
- Competition landscape – In India there are approx. 2000 franchise brands actively established roots and has become popular. Sectors like education & training, entertainment, jewellery, retail, home services, etc. are growing rapidly over past few years due to franchise model advancement.
These are few things that you should take into consideration before franchise your business. It goes without saying that franchise sector has shown unprecedented and is projected to become a multitrillion industry in coming years. Unlike other countries, Indian government doesn’t impose specific laws on franchise model. Only an agreement is signed between franchisor and franchisee to establish new franchise units in Indian marketplace. It is concluded that franchise model is best to increase profitability.
Today’s competitive environment is developing due to mainstream adoption of advance digital systems. Steady growth of various industrial sectors in Indian market has confluence with technologies like automation, exceptional sales and marketing. Companies are focusing on to cater consumer demands with immediate effect, but it is quite difficult to satisfy today’s consumer because their perception keep changing dramatically. Existing franchise business models are no longer effective and productive, thus it is substantial to utilize digital systems to match with exciting trends occurring in markets. Products and services, sales and marketing, operations, management, and finance are few elements which should be looked strictly to build successful business plans. Franchise business is replication of well-established venture in different locations; in fact, franchisor provides all sort of support such as training and marketing but should also do proper research to find out challenges faced by customers in your business region.
In a recent report on franchising, in India every year number of new franchise units establishes but only few of them manage to run for longer time period. Due to diverse Indian customer choice and preference you need continuous innovations to remain best operator. Hard work, business transformation, strategic planning and innovative thinking is required to develop flexible models. Franchise industry is burgeoning, sub-categories like education and training, entertainment, jewellery, food and beverage, etc. are expanding rapidly. However new franchise segments like home-based service, professional services, automotive services, etc. are also pacing up in Indian markets.
Now plethora of low cost franchise business models is offered by various companies, national and global brands are taking great interest in modify the shape of futuristic franchise business sector. The Idea of digital transformation is significant to develop lucrative products or services which are advantageous to mankind. Indian government has initiated Digital India and Start-up to encourage entrepreneurs towards developing modern-day industrial units in Indian soil. At present, Indian economy is growing at faster rate due to various historic decisions taken by government in centre. It is the right time to take advantage of various governmental policies to start own business. Metropolitan cities like Mumbai, Bangalore and Chennai are showing outstanding growth in terms of industrial growth and economic development. Starting a business from scratch is a complex task, thus entrepreneurs who want to buy established business should focus on latest franchise business opportunities. The whole idea of franchise business is to deliver cost-effective and unmatched services to customers around the globe.