There has been a noticeable growth in Indian franchising industry since 2008. As per the current reports by the Franchising Association of India (FAI) and KPMG, the industry is expected to have increased fourfold in size since 2012, creating 11 million job opportunities. It is also forecasted to be the cause of almost 4 per cent of India’s GDP by 2017. More than around 3,000 companies – local and global brands equally – are now utilizing the franchise model here. There are following important concepts which influence the immense popularity for the opportunities in the franchising world.
The key purpose for these adequate data is India’s consumption boom since last two decades. With GDP extension close to 8 per cent in the present fiscal year, India now has the rapidly increasing most important economy in the world, outperforming even China. It has become an economic world power, with its massive market of over 1 billion prospective consumers making it extremely engaging to overseas businesses.
And this mammoth Indian market is not a normal one. India is witnessing a demographic makeover, with a speedily mounting middle class who are achieving up going disposable income and favourably spending it on more comfy and luxury merchandises. This gave rise to a demand for greater value product choice and for higher quality, branded products, which franchises are keen to deliver.
More than 65 per cent of the Indian population is under the age of 35 years where in India’s economy has operationally shifted from being agriculture-based to service-based. This has led to an upsurge in young urbanites that have no problem purchasing on credits and, all thanks to worldwide exposure, are willing to spend money on expensive global brands. Investments from the giant international franchises are flooding in, with universal leaders such as McDonald’s, Dominos, Subway, John Players, Proshred, City of Oxford, Little Kickers, Oxford Learning, EVISU, MIgato, Korres, Lush Addiction, The Exercise Coach, Massage Envy, Room raider and many more are making their dramatic entry in Indian market while some of them are already well-established enjoying their profitable market share.
Food and beverages has marked its impactable presence making its in fact the biggest segment in the franchising industry, with quick service restaurants being the fastest growing franchise format. Other strong trades are retail, health, and thanks to the average age of the population and its education.
In India there are many groups of proficient entrepreneurs swelling out who know that the franchise is a comparatively low risk business model at minimal investments and no prior skills. They are aware that they can gain an established system and years of awareness and understanding from the franchisor, as well as full fledge training and support.
Combine their keenness with the appealing Indian market and the government’s current decelerating on Foreign Direct Investment (FDI) and it’s not hard to see why countless business leaders are observing India as a smart place to economically expand for franchise opportunities in India.
Stories by Zenia Shimon