Franchising in most parts of the world is well established business and part of business marketing activity that is being globally accepted by established as well as startup brands. In the countries like U.S. 1 out of every next 15 retail locations is a franchised operation. The franchise market in India is witnessing a upward trend with time and is mainly gaining momentum in retail sector as retail store franchise business. Currently, In India over 12 million retailer are operating and these number are anticipated to grow as the footprints of the retailers are increasing as the retail store franchise business providing tailwind to the growth of retail stores in India. It has been seen a huge competition in India and China. But with the time India has the country with the highest retail outlet density in the world.
With the so young and undeveloped franchise environment, there are over 600 franchising, franchising in the Indian market place. Around 40,000 franchisees spread out across the country in the various different sectors; maximum numbers of Indian employees are employed directly by Indian franchise companies. The market is enormous, with almost unlimited potential. From the last 5 years hundreds of brands have established in their stores outlets in the country.
Reason, why big brands franchise is moving towards India:
India is a growing economy.
India is one of the fastest growing economies, and in future country is going to become a major player for increasing growth rate. And due to this reason big brands and foreign companies are moving towards India, and investing money in India. The potential downsides of the new Indian market are what come along with any developing market. Growing popularity of the Franchise model among the Indian business man is evident in and around the country of India. Investors and retailers finding India a good place to invest money to earn more profits. Indian people and economy has become one of the finest place for investors to invest. Overall, the Indian franchise market represents one of the largest franchise opportunities in the world today. And in coming time franchise organizations with applicable concepts and good planning will absolutely take India in to account when planning their franchise system expansion for the coming next few years.
Malls roles in franchising Indian market.
Franchising is basically the concept of replication of successful business model, across locations with beneficial partners. Brands do not franchise their name if they do not have a reputation for sale. For heavy traffic, the inside of a mall is the most viable location. It is the perfect way to merchandise one's products, even if one is just breaking even. In the worst-case scenario, customers will be aware of one's presence. Growing mall culture has given a rapid growth for top franchise in India. Highly growing economy has given a big boom to shopping culture in India.