franchising booming india

Franchising-booming

INDIA(piggy back riders)

(business india)(july – august’ 2013)by Harsh Chhajed

fybba-144

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franchising defined A marketing system revolving around a two-party agreement, whereby the franchisee conducts business according to the terms specified by the franchisor .

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FranchiseeAn entrepreneur whose power is limited by a contractual agreement with a franchisor

FranchisorThe party in the franchise contract that specifies the methods to be followed and the terms to be met by the other party

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Increasing consumption and willingness to spend .

Increasing purchasing power of the middle class .

Growing preferences for branded and quality products among consumers .

Increased global exposure and growing aspirations to adopt western culture and use international brands.

Reasons for the boom( demand view )

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Increasing set of opportunity-driven competent entrepreneurs

Increasing awareness of franchising as a business opportunity and it’s relative low risk profile

Government initiatives such as the liberalization of FDI in retail which has allowed foreign brands to enter india .

Reasons for the boom( supply view )

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RETAIL SECTOR

FAST FOOD CHAIN SECTOR

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Franchising is Big Business Globally Over a million franchised outlets with sales of 2-3 trillion

dollars

The United States of America is at the forefront of the franchise boom

40 % of retail sale revenues are from franchising 50,000 Malls, 40,000 Supermarkets

Franchising has a Huge Growth ahead in India Relatively New Concept for India

Around 1,200 Franchisors in the country (200 are foreign) More than 100,000 franchisees

Current market size in India: $10 billion $20 billion by 2014 (30 % Growth Rate)

2% of the total Retail Sales 300 Malls, 1500 Supermarkets

Franchising infrastructure is in place in India

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A BETTER INDIA.. A RISING INDIA…

BIBLIOGRAPHY

WWW.KPMG.COM

WWW.FAI.CO.IN

WWW.ECONOMICTIMES.INDIATIMES.COM

WWW.FRANCHISEINDIA.COM

WWW.ENTERPRENEUR.COM

WWW.FINANCIALEXPRESS.COM

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