If it is not possible to own multiple outlets of your business on your own, it is even not possible to run a mobile business sans having partners. As franchising has come out to be an apt, wise and constructive way to spread and manage business in different locations, Logistics brands are following the same to expand their business via the same path. The companies are seeking to invest around Rs. 500 crore in the coming five years. More cities in India are being targeted so that the firms could plug the potential, which has actually been raised by their wealthy, internet-savvy consumers.
Rural areas lack most of the things and thus, Logistics companies have been aiming to stopcock these regions. The investment would be made in technology, warehouses, people and office space. Small outlets would be opened through franchise channel so that millions of people shopping online could get the packages delivered at their doors. Varied brands in the logistics sector, including InXpress, FoRUN Express and DTDC, have plans to expand through the franchise route.
Expansion Plans
InXpress, one of the logistics brands, running an international courier business, partnered with DHL, covers over 20 nations at present. InXpress believes in thinking and working out-of-the-box, seeking to cater to the shipping needs of each and every customer. Franchise partners are being looked for by the brand pan-India, including metros, tier I cities and tier II cities. The reason being only big cities currently have access to the International courier business.
While saving people’s time and money, the brand enhances the solutions and makes the processes more efficient. Its unique shipping portal WebShip gives people the chance to choose among copious services and carriers.
DTDC, on the other hand, has plans to extend its business by adding additional 500 pincodes by the year end. Uttam Chakravorty, DGM, Corporate Channel Management, DTDC, said, “Over the years DTDC has built a strong network, which is spread across the country covering the tier I & tier II cities as well as many small cities & taluka locations.” DTDC service can be availed by anyone in the metros as well as tier I cities. The brand seeks to expand in outstation and remote areas also. Its aim to gain a common identity in every region ranging from Mumbai’s most posh areas to small towns has helped it bag numerous awards.
Coming to FoRUN Express, the brand would probably add pincodes pan-India by partnering with franchisees at metro, district, sub-district, zonal and block level. Established in 2011, the firm has gained strength by catering both to domestic and international markets. At present, the company has 8500 pincode franchisees from Kashmir to Chennai with innovation being its constant practice.
Opportunity
FoRUN Express aims to serve the need of every business and individual, meeting customers’ expectations. Manish Kumar, Regional Manager, FoRUN Express, said that innovation is a constant practice at FoRUN and the same helps create world-class logistics and Courier and Cargo solutions to adhere to domestic and overseas markets. The brand, characterised by flexibility, efficiency, timeliness and reliability, has a flawless connectivity through air, road, rail and sea.
On the contrary, InXpress has been looking for franchise partners across the world, thereby providing a great opportunity to anyone who seeks to own a franchise store. InXpress’s Vishal Chopra, Country Manager, says, “In association with DHL, InXpress is into International courier business. Operating in over 20 nations, InXpress is seeking franchise partners in big cities in India as these hold International courier business.”
An InXpress franchisee would be offering preferential rates to customers while sellingtransportation services and performing administrative activities like accounting and invoicing. Each consignment that would be transported and dispatched by the carriers would profit an InXpress franchisee.
DTDC also runs on a unique franchisee-based model, which ensures its success all over. Different kinds of franchisees, viz. normal, subsidised and rural, are being hunted by the company in different cities.
Guidance and Espousal
You do not simply join hands with people to become partners, but earn your partners by giving them the belief that they would be guided all through. In order to ensure their success, these logistics brands follow the same strategy. InXpress remains in no doubt that its franchise partners are provided with complete training while having access to an entirely integrated system.
FoRUN Express’s franchise partners in different states and zones would be provided with company as well as marketing support. BDM would be provided and a glow sign board along with a pamphlet would be handed over. Besides, advertisements through different modes would be given to promote the business.
An induction programme is undergone by a new DTDC franchisee while he receives a welcome kit comprising major equipment. Training is offered to them on IT, Courier Operations and customer handling techniques. DTDC makes sure that the team is regularly trained, be it on products and services, presentation skills or marketing techniques.
Franchise Facts
Brand |
Investment |
Area |
RoI |
Breakeven |
DTDC |
Rs 2.50 lakh |
150-200 sq ft |
- |
- |
InXpress |
Rs 5-7 lakh |
NIL |
30-35% |
- |
FoRUN Express |
Rs 2-5 lakh for metro hub |
100-500 sq ft |
- |
- |