With growth numbers and initiatives by the Centre, organizations across the world have been tracking the Indian market closely
India’s improving ranking in foreign direct investment (FDI) and ease of doing business are testament of the fact that there are tremendous opportunities yet to be explored in the economy. As per Department of Industrial Policy and Promotion (DIPP), India received $60.08 billion of FDI, an increase of 8 per cent from last year indicating that the government’s effort to improve ease of doing business and relaxation in FDI norms is yielding results, especially with introduction of GST, it has become easier to do business within different states.
Retail: GAP, Aeropostale, Korres, Kioda, Owndays, Wizard Jeans, Migato, Lush Addiction, etc.
Food & Beverage: Southern Fried Chicken, Dippin Dots, Chewy Junior, Doc Popcorn, Pure Nectar, Texas Chicken, Funk Coffee, Mooyah Burger, etc.
Education: Little Kickers, Building Kidz, Sherpa Kids, Hi-5, Oxford Learning, 3P Learning, etc.
Most of the brands follow the joint venture or master franchisee route as it helps them expand swiftly across vast geographic spread using the existing infrastructure of the partner. Entering a new market through franchising route helps organizations get first-hand knowledge of that area and demography, along with investment commitment from the local partner. It hedges risk, aids financially and provides support through its existing supply chain and distribution channel thereby increasing the success rate. Brands have stringent parameters for shortlisting and selecting a local partner, whom they would want to associate, as it involves sharing resources and trade secrets and brands are particular of whom they are dealing with.
Retail, f&b, children education and fitness are the core sectors where international brands are looking for franchisees in India. The Indian demographic spread presents an array of opportunities for global players. An ever-increasing consumer base, which is likely to surpass China by 2022, lures foreign and Indian brands equally. Growing disposable income, highest youth population in the world (65 per cent of the population of 1.25 billion is under 35 years of age) and rising urban population presents an attractive mix for brands to test their fate in the Indian market.
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