Franchise business sector seems to have recorded highest growth in year 2015-16, expected to grow by US $ 35 billion by end of 2017. Supermarket chains are part of retail franchise business segment, likely touch whooping revenue INR 47 trillion by 2017, and potential international brands waiting for right moment to penetrate Indian marketplace.
It refers to professional market where all operational activities are performed under government license. All operators registered for sales, income tax and GST. The organized market share is comprised of popular brands, medium sized retail shops, and corporate-backed hypermarkets. At present percentage of organized market is less but by 2020 near about 20 percent marketplace will be under government eye.
It comprises of traditional grocery stores, convenience stores, local vendors or hawkers, etc. entrepreneurs operate in unorganized market also comes in government list after implementation of GST.
Retail market is contributing enormously to Indian economy; approximate 14 to 15 percent is added to GDP by organizes as well as unorganized market. Soaring prices of international products didn’t affect consumer pocket because they are habitual to international brands.
To bring more foreign currency in India government allowed international supermarket giants like Tesco and Wal-Mart to operate smoothly. To add more retail furniture brand IKEA a Sweden based company was allowed to own 100 percent business. Several domestic brands like shoppers stop, home stop, etc. developed business in Indian and also in international markets. New laws have been introduced; recent one is goods and service tax. People now-a-days are turning up to modern fashion trends, even middle family income is also increased. Supermarket giants currently operate in India use franchise business model to penetrate local markets.
There are few factors responsible for exceptional transformation includes:
- Changing lifestyle
- Increased income
- Demand for international products
- Favourable demographics
The business service sector includes banking, insurance, outsourcing, non-financial business, R&D, etc. Service sector in India is governed by both domestic and global factors. IT sector is likely to contribute business service sector, several IT companies offer franchise opportunity. Sub-sector in business services franchise generate whooping revenue of US $ 320 billion contribute heavily to Indian economic growth as well. At present financial services, real estates, etc. is booming sub-sector enable entrepreneurs to generate huge revenue. As per reports by Indian brand equity foundation, Indian business services sector generate employment as well new business opportunity. Specialty of service industry opportunities:
Individuals can easily operate from home as well as from small office; only thing required is better internet service. Several IT companies from foreign countries outsourced products/services in India. You can provide services to companies through generating leads for business.
To set up business low investment is required because you are using tested products/services. To remain competitive, organization looks to outsource business to other professionals. Young entrepreneurs looking to start new project capitalize on modern day opportunities.
For example to start financial services business, only few employees are required. Moreover, personal management will be enough during initial set up
Barrier to entry in business sector is low because there are several options available like real estate, professional services, social and personal services, etc.
Franchise business sector is booming, show unprecedented growth in past few years. It goes without saying that various business segments contributed heavily like education, retail and food but services sector is not lagging behind. Indian population is gradually increasing may touch Chinese population. On positive note growing population will add more value to Indian industrial development because in coming years India is only country that has maximum population between age group 20 to 35.
Global franchise business market is ranked at high position when compared to other competitive sectors over past five years. To promote products and services at largest arena companies continues to focus on franchising. The growth of franchise industry is fairly at good pace, regardless of economic troubles business climate is booming in recent time. In 2016-17 India, China, America, Mexico, Australia and other European as well as Asian countries are leading franchise markets. Surveys showed that most popular franchise segments are per business demand include food, education, fitness and retail. In addition, there are few new segments like truck services, security services and QSR gained amazing popularity.
Asian and European markets are seeking more development, in fact, entrepreneurs from China and India invested more on food and education related franchisees. In Asia China remains at top position with an estimated 7 percent GDP growth to be achieved by 2017. China is populous country, to utilise great manpower every individual is encouraged to start small business. At present approximate 5000 franchise and chain store players grow roots as well as offer employment to number of people.
Vietnamese and Indian markets are specifically expanding over past five years. Food and beverage sector is nurtured so well, for instance coffee market in Vietnam mesmerised international visitors. India is fast growing economies people here are more adventurous and develop extraordinary intelligence to penetrate various franchise segments. The recent opening of automotive as well as retail franchisees attracted international investors to explore more business opportunities.
American and Brazilian economies are standout all over the world. Newly elected president Donald Trump has brought various decisions to develop American markets. In the same manner Brazilian government has focused on large investment, like in food and drinks segment. Thus franchising market in almost every developing and developed country is growing rapidly despite economic problems occur around world.
Franchise business segment is emerged as leading job creator across the globe. Franchise market is continues to prosper in markets all over the planet. Despite current economic trouble occur in various countries, buying and selling franchise remains stable and turn out to be a popular business generation activity. In the wake of recent franchise business categories, there has been remarkable new projects manifest over past few years. For example, apparel as well as retail market which was dominated by unorganized market share has now identified as best segments. Evolving technologies are mainstay of vast development observed over various franchise market growth across the globe. World franchise market is getting diverse due to an appreciating US dollar and strengthening of economy of countries like India, China and France. Rules and regulations noticed around the globe could have positive as well as negative impact on franchise business growth. For instance, taxation rules in India, China and America are distinguished thus operators from other countries had to adjust in newer environment.
At present there are various franchise segments where buying and selling process is pacing viz. Automobile, commercial and residential services, full service restaurants, business services and retail. Thanks to continuous middle class income increment and changing demographics due to which these categories are considered as best franchising segments. Many people assumed that buying a franchise is a profitable decision but, in fact, there are number of things that should be taken consideration before become a franchisee. On the contrary selling a franchise will be fruitful if you are able to find best investor. Thus in both buying and selling practice recommendations from experience franchise consultants will prove beneficial. For example, Connect Franchise is one of the best franchise consultants working around globe. Thus both investors and brands purpose can be effectively sold by talented professionals.
The fitness and gym industry has transformed from ancient time to present arena. Earlier people used to wake up early in morning go to akhadas or any other exercise destination, perform various activities to keep body fit and fine. Desire to build strong body is carried to modern time but actually whole picture is different, technology has changed the way people perform exercise activities. Traditional health practices like yoga and Ayurveda are profoundly performed to relieve tensions occur due to hectic life scheduled. Every individual now-a-days want to look fit and fine, demand for smart equipment to do exercise increased at extreme rate. Fitness and gym franchisee players have recognized public demand, shift their focus from conventional methods to new generational offerings like lucrative equipments and personalized services. Globalization and greater concern for healthy body are driving factors for extraneous growth of fitness industry around the globe.
People living in developing and developed countries have shown great interest in modern day fitness equipment to get relief from various bodily disturbances like obesity. Looking at present scenario, India is emerged as best destination to start fitness and gym franchise because population living in country is comparatively young thus there might be greater demand for wellness activities. As per reports, wellness industry in India has outperformed other segments as 85000 crore business was done in fiscal year 2015-16 and is projected that approximate 2 trillion can be touched by 2020. Number of global and domestic players have identified Indian wellness industry potential, established fitness centre in major cities. This vast development is primarily attributed to changing lifestyle trends, healthcare trends and globalization. The industry is also influenced by shinning industry like bollywood, Hollywood and tollywood. Celebrities having great body are ideal for young generation; inspire young lads to build good physic. Thus there is various business opportunities grow in years to come.
Connect Franchise is play vital role in franchise whole process. Finding a good franchise consultant for your business must be the first step for you in franchising your business. When you feel like expanding business because franchising your business requires lots of planning, management, resource allocation, risk management and timely growth.
Another imperative thing about the franchise consultants is that multiple occasions it happens that they are the considered as the key component for the accomplishment of the business. This happened as those were the most experienced one and not withstanding that they have so greatly overhauled learning with respect to the present situation of the market. Additionally, you don’t need to pay for them as they work for the association. So, cheap and reliable solution for success of your business at connects Franchise.
Prashant Kulkarni is a franchise consultant associated with a franchise company for many years. She has done a lot of research on franchise business and gives franchise business idea. He trust in sharing experience and knowledge with others and thus he wrote a number of articles and blogs on franchise business so that people can know the importance of hiring a franchise consultant.