Tips to keep in mind while bringing and promoting global brand to India

Introducing a globally renowned brand to Indian marker is no kids play. The entire process requires a lot of fresh brand building and promotional activity to educate and lure local consumers.

Due diligence in defining your international strategy ahead of time, while setting realistic goals and gaining a solid understanding of your target audience will help you make a good first impression in new markets and as you know, it's the first impression that counts, here is some essential tips from Istayak Ansari, Director, Lloyds Luxuries Limited, who has brought London-based Truefitt & Hill, one of the oldest barber shops in the world to India.

Here is 11 recommendations to bring a global brand to India.

1. The brand you are bringing to India should be Unique and have Proven Business Model in more than one country.

2. A growing chain is always preferred over a stagnant chain or one facing the growth or closure of outlets. Last 5 years expansion by the company will reflect where the company is headed.

3. The support and technical know-how provided by the franchisor.

4. Flexibility of the franchisor to tweak and adapt the model for the Indian market to make the business viable.

5. Once we are convinced on the above four points, then we proceed to commercial negotiation. Key points in a Master Franchise Agreement that need to be negotiated, keeping viability and profitability in mind are as follows:

1. Master Franchise Fee

2. Royalty per store payable to franchisor

3. Number of outlets to be opened during the agreement period by master franchisee.

4. Tenure of the agreement.

5. Renewal fee

6. Tenure of renewed period

7. Termination by the franchisor

8. Cost pertaining to support provided by franchisor

9. Any things that need franchisor’s prior approval and timeline for the same to maintain smooth running of operations

10. Protection of master franchisee exclusivity in the designated territory during the contract period

11. The territories for which you take master franchise rights

Here, He can give tips or suggestions to wellness professionals who want to tie-up with international brands to make their entry easy in Indian market.

Tips to wellness professional who wants to turn Entrepreneur

1. Before you take the plunge, you need to have thorough knowledge of running a business involving all trade aspects. You have thoroughly researched the market and have the funding and business model in place.

2. You need to have like-minded and sound finance partners on board who are equally passionate about the business and have good experience of running a business. Do not oversell the bunnies concept to your partner. It does not work in the long run. Do not have too many partners.

3. Make sure you have enough savings to run your house and fund your business. Always keep in mind that new venture take time to stabilize and generate profit. In business, you need to have patience and passion to grow.

4. To create your own brand or take a franchise is a personal choice. I recommend, if you are well funded, create your own brand or take a Master Franchise rights for a territory. If you have limited funding, then it's always advisable to take a franchisee of a brand, which is well established and have a proven business model. The success ratio in a franchise model is more than 85 per cent.

Challenges of Indian wellness Industry

• The biggest challenge is to get skilled staff and retain them. The industry is currently growing at the rate of 30 per cent year-on-year (YOY) for past five years. The demand for skilled and experienced staff is more than what’s available. Companies in the health and wellness space have set-up internal training centers and academies to meet their staffing requirement. The attrition rates are high and the industry will continue facing this challenge for the next 10 years, as we are in the growth phase.
• Cost of running business is very high in India. There are very few options available on high street in prominent and premium location in each city. The rent has gone up exponentially in the last 10 years as the demand is more than supply. Typically rent should be in the range of 12 per cent to 15 per cent but if you are operating in a premium location it can go as high as 20 per cent to 25 per cent impacting your bottom line. Per unit cost of electricity is one of the highest in the world. In our case 80 per cent products used in the services are imported adding further to your variable cost.
• The royal services that we offer at our store are still a concept. We are the first luxury barbershop in India. Our biggest challenge when we started operations was to sell and establish premium pricing for our products and services. We needed a strong differentiator in our services to command a premium pricing. We have been successful in establishing a premium pricing for our services and products which reflects from a very high retention of our clients and repeat services. At our store we offer royal experience and not just good services that's differentiates us from the rest.