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Indian
Franchise Statistics and Information
From the
traditional business acumen Indian business community has made
a shift towards understanding and adopting business as a science.
And when it comes to science and systems of business, franchising
is a sector that is ever evolving and thriving. Indian business
environment is slowly witnessing the changes and now the concept
and essence of franchising is permeating into the Indian businessmen's
mind.
In the past
one decade International franchise brands like Pizza Hut, Dominos,
KFC, Mc Donald's, Gold's Gym, Kodak, Subway, Holiday Inn and
many others started a positive trend by leveraging the potential
of the Indian market. Thanks to these brands today International
franchising in India is one of the most exciting areas in the
franchise industry.
The vast
geographical expanse, diverse culture, powerful and growing
economy and acceptance of western concepts by Indian masses,
provide excellent franchise and business opportunities in India.
Especially sectors like Retail, Food and Beverage, Education,
Health, Beauty, Tourism, and many other services are booming
in the Indian franchise market. It is also predicted that introduction
and penetration of new technologies will create new opportunities
for franchises. All these market conditions combined with the
low rate of franchise failure and significant return on investment
has made franchising a major strength in current Indian economy.
Also many
Indian brands are taking the franchising pathway to success
and in areas like Specialty Cuisine, Ayurveda, Education and
beauty many Indian brands have created a global success story.
New age Indian generation has realized the scope of growth in
franchising and thus in today's race for success majority of
Indians have decided to indulge in business. And for these entrepreneurs
becoming a national or International franchise seems much easier,
safer and profitable than struggling for brand identity while
running a small enterprise of their own.
India is
an autonomous and competitive territory for doing business with
a very vibrant media, a pool of high skilled sophisticated labour,
an impartial judiciary and a favorable legal infrastructure.
Thus every state and city brings promising business for both
national and International franchisors. India is also well positioned
among Asian destinations for foreign direct investment and thus
more and more foreign companies are planning to set up their
base in India. This will result in more lucrative franchise
and business opportunities in India.
Since its
beginning in early 90s, the franchise industry has grown in
leaps and bounds in the Indian sub-continent and there is still
much to explore, based on the successful growth of many franchise
brands in India, the future of franchising in India is highly
promising.
This promising future of the Indian franchising industry is
backed up by an equally powerful market report that shows statistics
of this thriving sector.
According
to the reports, for the past five years Indian franchise market
has recorded a steady growth of 30 to 35 % per annum. Also the
annual turn over of the Indian franchise industry soared to
3.3 billion USD and it is projected to soar higher in the coming
years.
Employing
around 3,00,000 people the Indian Franchise industry has much
more to offer than it is presumed to be. There are four fastest
growing sectors in Indian Franchising namely Telecom, Retail,
Food and Education. And there are good reasons for this to be,
Indian Telecom sector recently celebrated a record of 100 million
users and this brought a wave of expansion in every Indian telecom
company to the farthest and remotest possible market Telecom
franchises have come up in India and they are projected to thrive
well with the reports of user numbers touching 250 million by
the end of 2007 and 500 million by the end of the year 2010.
In the retail
sector also there has been a constant flow of Real Estate projects.
With 300 malls, 1500 supermarkets, the Indian retail market
will be thriving more than ever before. And as, many of the
franchise businesses are into retail, the Indian franchise industry
will witness a growing trend in this sector.
Apart from
Retail and Telecom, Food and Education are the sectors which
are showing promising trends. While Food franchise has always
a been steady sector, Education has picked up recently by offering
education to every consumer group from Playschools to spoken
English, Computers to Overseas education consulting and many
other areas of education has been explored in Indian franchising.
Anyone who
has seen the geographic scale of India can presume that in the
coming future franchising industry will attain very high growth
records. The industry has not yet touched its zenith. Till now
only major cities have provided the platform for growth of Indian
Franchising, however as the Indian economy is acquiring new
dimensions more than 50 B cities of the Indian sub continent
will emerge as new markets for Franchising.
Both the
consumers and entrepreneurs of these small cities now feel the
thriving pulse of their bigger counterparts and are more than
ready to welcome the new shift in the trade and business. Also
as the major cities are now on the verge of saturation, best
of the brands and corporate companies are finding these small
cities as their next hot destination.
The makeover
of a small town Gurgaon in Haryana is no less than a miracle,
from a farmland set up, it has emerged as the center for every
major MNC's operations. The youth and people have accepted and
adapted this shift and today Gurgaon boasts of being the most
buzzling destination, be it employment, business or fun and
entertainment. With a Mall at every corner and rows of international
call centers and a multinational company head office in every
building, Gurgaon represents the face of new age Indian city.
Every small
town in India is waiting to be the next Gurgaon and we are sure
with upcoming economic trends this hardly seems difficult.
With the
trade and business growth, retail and franchising industries
are sure to soar and thus as the most potential market, Indian
Franchising is all set to ride high.
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