Friday, February 26, 2010

India Franchise Industry To Cap $ 14 Billion by 2013

The Indian franchise industry, currently pegged at $8 billion, is bound to reach $14 billion by 2013 on the back of emergence of low-cost franchises, according to Ritu Marya, director of Franchise India Holding Limited.

“In the recent times, there has been an increasing acceptance of the franchise model as a key concept for growth in most of the industries and this trend will continue,” she told mediapersons here on Thursday, adding there are currently about 150,000 registered franchisees (excluding dealers, distributors and agencies) in India.

Franchise India will be holding the 25th edition of FRO Expo 2010, an annual franchise and retail show in Hyderabad from tomorrow (February 26). Spread over two days, the show will see the participation of close to 10,000 franchisers, investors, suppliers, to-be-entrepreneurs and established brands like TTK Prestige, Kwality Walls and Gitanjali Jewels, Marya said.

“The show is designed at making the whole process of starting business simpler for the small business fraternity. We expect about 70 per cent deals between the franchisers and the to-be-entrepreneurs to materialise,” she added.

Thursday, February 25, 2010

Franchise is the best way to expand into the emerging economies of the world.

Franchising your existing business might be the best possible way to take the opportunity to enter emerging markets. Markets like India and China have complicated rules and regulations about who is entitled to own and operate a business there. The best way often to circumvent these rules is by franchising your operation in these markets.

By using franchising the franchisee owns the business whilst the franchisor takes a share of the profits. Why does an established business want to deal with headache of red tape and restrictive trade practices when with a leap of the imagination the franchise model allows them to achieve the same profitability without the same hassles?

Many British retailers including Argos and Mothercare have used the franchise model to dabble in new emerging markets. The franchise leaders that are quick to carve out major niches in these new emerging markets will grab unprecedented market share before their slow and sure footed competitors move in.

The largest emerging market place is China with India being a close second. China could become the largest market place in the world within the next ten years and overtake the USA.

Franchising is the ideal route for many US and UK companies who want to test the water without expending large sums of capital. This gives them a chance to dip their toes in the water without risking large sums of capital.

Once large organisations find that their business model does actually work in the new, exciting and dangerous market place they can dedicate their resources to find better ways to keep a higher percentage of long term profits for themselves.

China and India are very unique marketplaces. Unlike say for instance Australia not everybody in China speaks the same dialect. The divide between rich and poor is also vast. Tastes vary enormously as does buying power.

In India there are literally hundreds of different languages whilst admittedly the main bulk of buyers with money can be targeted by 2 languages… Hindi and English. Again here spending powers vary and so do belief systems.

In reality trying to expand new emerging marketplaces without testing the waters first is fraught with danger. Franchising offers a real solution to test out the marketplace, learn the structural issues and change your products and marketing so that it identifies with the local marketplace. This does not mean that you can not enter the marketplace independently. You can franchise x numbers of units and then create non franchised units in other territories.

Throughout history economic powers have grown and declined. Asia is growing rapidly and will play an ever increasing role in the ever demanding need for companies to find new customers. The buying power of Asian consumers is rising at a dramatic pace and the consumers are demanding better products and improving service. The opportunity is there now for Established US & Europe brands to market their brands and test the waters before entering fully.

To sum up, the emerging markets are predicted to compete with the western powers in terms of buying power and economic strength. Any company which ignores this is turning a blind eye and letting its competitors expand, gain a foothold and exploit the opportunity whilst they watch and wait.

Wednesday, February 24, 2010

Khadims Looks at being the No 2 organized footwear franchise retail brand.

KOLKATA: KM Khadim & Co Ltd was a nondescript footwear shop at Chitpur in Kolkata, one among the hundreds of outlets that dotted eastern India’s footwear factory when it was bought by Satya Prasad Roy Burman in 1965. The wholesaler blended with the multitude of unorganised players that dominate the city’s shoe industry, a trait its shares with the country’s footwear market, for many years.

But in 1993, Mr Roy Burman and son Siddhartha saw that the future was in retail and decided to make the leap. Backed by a formidable team of karigarhs (shoemakers) who deliver low-value products by the thousands, they first set up 3 stores in Kolkata. The move paid off.

Khadim’s — the moniker was retained as a tribute to its previous owner — is today the country’s third-largest organised footwear retailer. It is the top player in the east with a mushrooming empire of 499 retail stores across India. The company’s products go off the shelves off independent dealers as well.

The company also owns a 30,000 sq ft superstore, Khadim’s Khazana, near Kolkata that offers a scrum of products under one roof to people residing in the suburbs as well as two Sona Khazana stores, which marked its foray into the jewellery business.

Though it has a factory that makes wash-and-wear and premium leather footwear, Khadim’s’ success primarily rests on its outsourcing strengths. The company relies on over 200 third-party vendors spread across eastern India and northern leather product hubs such as Kanpur and Agra for sourcing material and finished footwear.

According to a rival company executive, Khadim’s hits the high spots on merchandise and pricing as well as distribution. Khadim’s specialises in affordable products, with prices starting at Rs 70. The wide variety of shoes in its portfolio includes footwear for men, sporty and sports shoes, comfort leather shoes, stilettos and fashion wear. Aggressive marketing has helped in a high brand recall among customers.

The efforts have helped Khadim’s to a turnover of Rs 200 crore in 2008-09 and an estimated Rs 240 crore this fiscal. “We’ve perfected our setup over the years,” says Siddhartha Roy Burman, managing director of Khadim’s.

There have been mistakes though, such as Egaro, Khadim’s lifestyle retail venture, where it burnt its fingers. Egaro was launched with much fanfare in 2007 with two sprawling stores but the plan folded due to high rentals and low footfalls.

“Each failure has been a learning experience,” says Siddhartha Burman. “We should have started small with Egaro as it was new to us. After all, we don’t have very deep pockets.”

Having learnt its lesson, Khadim’s plans to focus singularly on footwear retailing. The company owns only 70 stores while the rest are franchises, a status quo it wants to change. Plans are afoot to open up to 80 stores every year till 2013. “The aim is to ramp up its own stores to 150 and become a Rs 500-crore company by then,” says Siddhartha Burman.

The moves come as the footwear market is estimated to have grown to around Rs 12,000 crore with the entry of a raft of global players such as Skechers and Pavers, a far cry from the handful of companies present in the organised space at the time of Khadim’s entry.

But Khadim’s is unfazed by the changes. “We treat our franchise stores like our own. We share everything with them: our good practices, servicing, team management tips, even the salesman’s salary,” says Burman Junior.

Still, pressure from players in the unorganised segment is mounting as they become cost-competitive and tap into the rural market for growth. But Khadim’s believes it has swathes of customers who will not switch loyalties. “Total footfalls over our own stores and our franchisees is about 40,000 per day,” claims Mr Roy Burman.

The company is also trying to win over new customers through constant innovation. New products such as orthopaedic and anti-skid technology shoes have been launched in recent months. Khadim’s also tries and keeps abreast of the latest fashion trends and fits them into the portfolio.

The company is now taking a shot at surpassing Liberty Shoes, its closest rival, though Bata India is presently out of reach with its 1250-plus retail network. “We are right on track,” says Mr Roy Burman.

Monday, February 22, 2010

Village Level Franchisee Partners for a patented 'Education That Works- Learning System' across India

New Delhi, 22nd Feb 2010: Srei Sahaj e-Village Limited, a subsidiary of Srei Infrastructure Finance Limited, under the umbrella of its unique partnership with the Indira Gandhi National Open University (IGNOU), the largest Open University offering distance learning programs, is launching skill development vocational programs at affordable costs for the rural population of India through more than 29,000 Common Service Centres (CSCs) that Sahaj is setting up in the states of West Bengal, Bihar, Assam, Uttar Pradesh, Orissa and Tamil Nadu.

Sahaj, in partnership with IGNOU, is launching a new learning methodology called ‘Education That Works – Learning System’ (ETWLS). This is a unique Learning system for which a Global Patent has been filed (patent Application Number – 322kol2009). This invention is a self instructional computational system which functioning via Core Interpretational System controlled decisional logic gates, depends on the efficacy of user input. The invention uses a graphical user interface and creates interaction between the user and the software. Through this unique interaction process the system determines the combinations and the correctness of approaching a specific task by the user.

In this unique methodology, actual skill assessment will be done in an online mode. After a student has studied a topic, the environment for practice opens and the student actually practices what he is supposed to have learnt. He can move to the next level only if he implements his learning correctly. A total of five programs will be currently available as a part of ETWLS; a diploma in Advanced Computing and a certificate program in Java, SQL, Flash and HTML respectively.

In order to bridge the rural and urban educational gap, Srei Sahaj and IGNOU had partnered in 2009 to provide training in a blended learning environment to enable students to undertake a range of recognized qualifications.

The initiative is aimed at making up for the lack of rated educational institutes in the rural India and help students in the villages get quality skill up gradation without the hassles of relocation. The programs are also supported by Chaakri.in, Srei Sahaj’s job portal dedicated solely to the rural population. All the learners who register on the portal will be guaranteed at least one job offer. It is projected that in the next 12 months, about 80,000 youth will be trained on these courses and over a period of time, more certificate courses, diploma and degree courses will be launched.

Commenting on the launch, Chief Guest, Thiru A. Raja, Hon’ble Union Minister for Communication and Information Technology said, “I laud the initiative taken by Srei Sahaj and IGNOU of introducing the rural population to the innovative skill development programs thereby creating opportunities for the rural youth to become more skilled and technically trained which would further increase their scope of employability. The plan would greatly benefit and augment the growth and development of the socio – economic landscape of rural India.”

Commenting on the new mode of delivery of its services to rural India, Dr. Sabahat Azim, CEO, Srei-Sahaj said, “Currently, one of the biggest bottlenecks in India’s growth story is the lack of skilled manpower. In rural India, the biggest stumbling block in fighting poverty is the lack of livelihood opportunities and skill development programs available to the rural population. Therefore, the latest offering from the Srei Sahaj and IGNOU partnership is set to go beyond all commercial considerations and achieve the avowed objective of empowering rural India through the innovative courses on offer.”

About Srei Sahaj e-Village Limited

Srei Sahaj e-Village Ltd. is a subsidiary of Srei Infrastructure Finance Ltd. It is a business integrator in the field of IT infrastructure with a focus on rural India. It has 65 offices across 6 states and is emerging as one of the largest implementers of ICT-based projects in India. It has taken up the task of eliminating the undemocratic digital divide between rural and urban India, under the flagship of NeGP of the Government of India. It brings government, business, and services to the rural India through an expanding network of Village Level Franchisee Partners. Srei-Sahaj is set to launch over 29,000 CSCs across the country. More than 16,000 CSCs have already been established, providing a single-window, one stop solution to the citizen’s needs, under the Private-Public- Partnership (PPP) arrangement.

The parent company of Sahaj, Srei Infrastructure Finance Limited, is a Holistic Infrastructure Institution, constantly and consistently ideating to deliver innovative solutions in infrastructure space, thus playing a significant role in nation-building for over two decades, both in urban and rural India. Srei’s businesses include Infrastructure Equipment Leasing & Finance, Infrastructure Project Finance, Advisory & Development, Insurance Broking, Venture Capital, Capital Market and Sahaj e -Village. Srei has a pan-India presence with a network of 63 offices and has also replicated its business model overseas with three offices in Russia. Srei is the first Indian infrastructure financing institution to get listed on the London Stock Exchange. Srei Equipment Finance Pvt. Ltd., a joint venture between Srei Infrastructure and BNP Paribas Lease Group, a wholly owned subsidiary of BNP Paribas, is a Srei Group company engaged in Infrastructure Equipment Leasing and Financing Business.

About Indira Gandhi National Open University

The Indira Gandhi National Open University, established by an Act of Parliament in 1985, has emerged as the largest University in the democratic world. Today, it serves the educational aspirations of nearly 2 million students in India and 33 other countries through the twenty-one Schools of Study and a network of 59 regional centres, more than 2300 Learner Support Centres and around 52 overseas centres. The University has, in a relatively short time, contributed significantly to higher education, community education and continual professional development.

As a world leader in distance education, it was conferred the Centre of Excellence Award in Distance Education in 1993 and the Award of Excellence for Distance Education Materials in 1999 by the Commonwealth of Learning (COL), Canada.

For further information, please contact:

Braj Kishore
Vice President and Head
Corporate Communications and Brand Management
Srei Infrastructure Finance Limited
Mobile: 098360 35599
Email: braj.kishore@srei.com

Debaditya Chaudhury / Nishant Kela
Blue Lotus PR
Mobile: 9831093508 / 9874189149
Email: debaditya@bluelotuspr.com

Background Note for the editors:

About Sahaj

1. Under the Prime Minister Flagship National E Governance Plan, Srei-Sahaj e-Village Ltd, a subsidiary of Srei Infrastructure Finance Limited, has taken up the task of eliminating the undemocratic digital split between rural and urban India. It brings government, business and services to the rural India through an expanding network of Village Level Franchisee Partners i.e., Village Level Entrepreneurs.
2. Today, Srei-Sahaj in partnership with its 16,000 Village Level Entrepreneurs, is serving about 160 million rural citizens.
3. Sahaj is mandated to set up a total of about 29,000 Common service Centres in states of Assam , Bihar, Orissa, Tamil Nadu, Uttar Pradesh and West Bengal. Recently it tied up with Jammu and Kashmir Bank to help roll out the CSC project in the challenging terrain of Jammu and Kashmir.
4. A total of 32 services are now available at Sahaj CSCs including digital photography, digital video-shoot, NREGA photograph, NREGA data collection, government form submission, information regarding electoral processes- addition and deletion in the electoral roll, data entry (LA and LR), DTP, ROR, Internet, death certificate, birth certificate, property tax payment, agricultural soil testing, agricultural diagnosis, e-Learning, electric bill collection (WBSEDCL), BSNL bill collection, mobile top ups, railway reservation, LIC premium collection, advertising, rural-job portal and examination results. There are many more services in the offing like e-Commerce, matrimonial services, distance education, postal service, IEC (Information, Education and Communication), and infotainment.
5. Visit www.sahajcorporate.com for more information.

About ETWLS: Education that Works – Learning System

This is a unique Learning system for which a Global Patent has been filed (patent Application Number – 322kol2009).

The invention can be referred to as a self instructional computational system which functioning via Core Interpretation System controlled decisional logic gates, depends on the efficacy of user input. The invention uses a graphical user interface and creates interaction between the user and the software. Through this unique interaction process the system determines the combination's and the correctness of approaching a specific task by the user. The interpretation attribute of the system is due to the composite effect of two mutually reinforcing Interpreters that are the fundamental control points behind the conditional signal antiport through the logic gates. The uniqueness of the system constitutes not only the decisional capacity of the system based on interpretation of user action but also the synergistic paradox of the two mutually complementing Core Interpretational Systems manifested through conditional flow of signals through the two logic gates.

In other words this is a real time self Assessment system that not only allows a student , under a distance learning program, to have hands on experience on a simulation of the subject that is being taught but also assesses the execution of the instructions given on a real time basis .

This mechanism ensures the following:

1. That the student actually understands the practical execution of the topic thereby enhancing the comprehension and retention of the matter.
2. Since the assessment is real time – the student knows immediately the accuracy of his execution.
3. Since the logic is so designed that the student cannot proceed unless the execution is absolutely accurate it ensures that the student will ultimately learn.

Kiwi Kiss Frozen Yogurt Franchise In India

Kiwi Kiss yogurt in India soon


Kiwi Kiss, the Canadian frozen yogurt chain owned by AW Holdings — known for the fresh juice and sm­oothie brand Jus Booster Juice — will soon come to India. Brand Calculus, the master franchisee of Jus Bo­oster Juice in India, is bringing the yogurt brand too.

India will be the first ov­erseas market for the brand to enter. AW Holdings had launched Kiwi Kiss in November 2008 in Canada.

With Jus Booster Juice, last year Brand Calculus had entered a highly disorganized market for fruit juices in India. But, frozen yogurt is comparatively newer product as far as the country is concerned. According to Fazle Naqvi, MD of Brand Calculus, there is growing demand for fresh juices and yogurt brands among the health and hygiene-consci­ous customers in India.

“The unorganised market for fresh juices operates at low prices. We are not co­mpeting with them on pri­ces, but on quality, variety and hygiene,” he said.

The company has opened 11 Jus Booster Juice outlets in Bangalore, Delhi and Chennai. By the end of this year, Brand Calculus plans to have a total of 100 outlets, of which around 30 will be operated by franchisees.

“We receive the technology, product and storage-related support from the brand. But we are also free at innovating and localising products,” he said.

By Sangeetha G Feb 22 2010 , Chennai
Financial Chronicle

The Franchise Industry In India In 2010.

Despite the global recession and the economic uncertainty in India, the franchising industry grew promisingly at 20 per cent.

The industry saw some changes in franchise-franchisor relations and the franchising process during this period.

A change was also seen in the categories franchisers preferred to do business. Categories such as education, quick service restaurants and services retail (salons, fitness centres and so on) were preferred. Some brands such as KidZee, Adidas, Raymonds and McDonald’s have franchised 100 per cent of their stores.

Franchising models have also changed because of the economic conditions. Sales responsibility is being shifted to the franchisees, with minimum guarantees being replaced by sales incentives.

On the part of retailers and brands, franchising has posed to be a profitable venture because of the promised return on the capital invested, and at the same time, lower costs on monitoring and running the store.

Source:Strategic tools for the practicing manager:Business Standard
Technopak Advisors / New Delhi February 23, 2010, 2:34 IST

Grow Your Business: Get The Right Franchise Consultants

Overview:

With more than 1500 organized franchisers in India and an estimated 3000 getting organized in the next couple of years, it becomes very important for every business to analyse, what's the best way forward. Will franchising serve my organizations growth objectives? If yes, how do I 'Franchise My Business' or 'How To Franchise.' How can I quickly build a robust business system that works efficiently with a variety of franchisees, all of which work independently and yet at the same time together? What are the challenges I need to address? Franchising can give you great results. Every business is unique and has to be dealt differently. You can mould your business strategically around franchising and set the foundation for scalability and growth. The first step is to look for a franchise consultant expert who will run this marathon along with you.

Introduction:

Expanding a business always has a lot of planning, resource allocation, risk analysis, adaptability and timely growth that one has to engage with.

The first question that you ask yourself is what course of expansion must I follow?

Should I have more of my own company units in different locations?
Do I have the resources to do it?

If yes, how much time will it take me to do the desired number of units?

If no, how would I fund the expansion?

Will I knock on the venture capitalists door or will I go to banks and other financial institutions?

Are market conditions favourable, how fast is competition catching up, will tomorrows markets be as potential as today’s or will they improve?

By doing so will I be able to serve my customers efficiently through my employees, what are the kind of team members I must have?

What is my exit strategy? What is the reason for which I am into this business and how will I optimise my time and investments?

Most entrepreneurs have the above doubts when they are thinking of expanding their business, which is when they also explore franchising.

Is franchising right for your business?

Franchise as a business development strategy has been around for some centuries now. Different businesses have used franchise development for their growth and over the years grown into successful franchise brands. I will not speak of the numerous franchise success stories that repeat themselves as a standard template in such business blogs or franchise articles.

“Most businesses that have a replicable prototype which works without a specific individual, and is able to generate profit for the franchisee and the franchisor, and at the end of the distribution chain offers value to the final consumer at price and service levels, satisfactory to a clients consumption, generally take the franchise route.”

It is very essential for business owners to realise the potential of what franchising could do to their businesses. They must make sure that they are ready to expand, because they cannot reverse this decision and more often than not, there is only one chance that they get to, ‘get the act’ right. Once they decide to expand the earlier they reach out to professional help, the better it is. There are a few experienced franchise consultants in India, who could help you grow stage by stage and ensure that you do not commit the typical mistakes, most businesses commit whilst they expand. You could very quickly learn from the experts and create a franchise expansion strategy that is suited to your organization not your industry.

Choosing the right franchise consultants in India:

Also be very careful in selecting your franchise consulting company. You could come across a few consulting companies, who have the reputation of making the Franchisers/ Business owners invest so heavily at the onset on Initial Documentation, Franchise Marketing, Franchise Advertising, Franchise Agreements, Franchise Exhibitions and other related activities that the client does not have anything left for the actual business development or support to the franchisees or capital to take their business from this stage to the next. On the other hand, it’s never prudent to release an advertisement or participate in a franchise exhibition and then plan your franchise responses based on the calls you get. It’s the surest way to fail. I have seen several clients who ‘cut and paste’ their competitors franchise plans or accumulate various offerings and speak to several franchisors just to figure out what could suit their businesses. They then go back and announce a ‘mixed concoction’ of what they call as a ‘franchise offering’ trying hard to please the initial set of entrepreneurs whom they reach out using their own ingenious ways. I remember seeing, one such company/franchisor, distributing leaflets of their offerings outside a franchise exhibition venue and trying to talk to all visitors about the same. Will they ever succeed in getting the right franchisee? Is that the right way of projecting your business?

Well all of us know the answer to this while most people then go about asking as to why does a franchise fail.

I often answer, “Franchising doesn’t fail, its how you franchise your business that has failed.”

You’d rather go with a franchise consultant who works closely with your business like a coach and is interested in the long term success of your franchise, works closely with your organization on the entire systems, understands your brand and its ethos and engages the prospects interested in your business, chooses them carefully for you, does the entire expansion fieldwork on your behalf while you are constantly strengthening your business and making it ready for franchise growth. Franchise Training, Creation Of Franchise Manuals, Standard Operating Procedures (S.O.P’s) are also very essential components of franchising and you must check if your consultant is competent to help you with these at the speed and costs that are feasible for your business. It is very important for you to assess the team that would work on your project and the actual people and their backgrounds along with previous track record of the work that they have already done. Doing a reference check with clients who have already experienced the services could help you understand if the franchise consultant will be able to deliver what you seek. You must assess the size of your organization, the growth that you want to achieve and then choose a long-term franchise guide, whom you could speak to at any point in time and get valuable guidance along the way for years to come.

While larger organizations might have people changing at the top and at different levels, its important that the consulting team is able to put in systems and processes that new people can instantly adapt with a appropriate franchise training programme and a standard set of internal documentation in place. The focus on the right training at all levels of franchising is very important. I remember putting down specific internal employee do’s and don’ts for a client, who was very concerned of change in people at different levels and that affecting the business franchising. That was something that we put in place from the word go.

Hence, while most businesses can be franchised and with franchising gaining momentum in the Indian subcontinent, it is very important that the business community and the franchise entrepreneurs understand the availability of such experienced resources to their disposal, which if used properly could ensure franchise success for their businesses. We must learn to learn quickly from others mistakes and go ahead with franchising your businesses with utmost care, proper research, on ground market realities and the franchisees expectations.

At the end of the day it’s about creating a happy customer, a happy franchisee, and a franchise business that delivers what it promises.

Saturday, February 20, 2010

Bookmark Library Franchise Opportunity

Bookmark Library is an interesting startup (Pune based) that is bringing all sorts of distribution and inventory to book lovers. The company provides Books, Movies, Games, Toys, Magazines under one roof and the most important part is the distribution model. There are three modes of access for subscribers – Physical stores, Online library and Tele-library and company has started franchise model for expansion. Started with a capital of Rs. 35,000, the company now has a ‘fleet’ of 35+ outlets and the founding team’s vision is to see Bookmark unmanned vending machines for members to access products anytime anywhere like airports, coffee shops, railway platforms, bus depots, etc. The whole library market is highly fragmented, and as digital libraries ( Mumbai’s first digital library was launched a few months back ) attract the attention of readers, new formats with tighter integration between offline and online will emerge. Even though it’s an operational intensive business, maybe the distribution model will help them achieve better margins.

What’s your take on Bookmark Library?

Wednesday, February 17, 2010

Hasbro Clothing's, 'Basics Life,' 'Genesis,' and 'Probase,' To Expand Across The Globe

Hasbro Clothing mulls increasing store count
February 16, 2010 (India)

Now that the slowdown is showing sign of withering away, many apparel retailers are mulling plans to increase their pan-India presence. Hasbro Clothing, a leading men’s garment and accessories producer too is keen to ramp up it store count by launching 25 more ‘Basics Life’ stores in the next fiscal year (2010-11).

Hasbro offers men’s clothing under three main brands; ‘Basics 029’, ‘Genesis’ and ’Probase’ and currently operates 50 stores, of which 28 are franchisee owned and the rest company owned exclusive brand outlets (EBOs).

Apart from the launch of 25 additional stores in India, Hasbro is planning to open a 1,200 sq ft. International expansion includes franchisee store in Qatar in the Middle-East in another two months. It also has stores in Sri Lanka and Maldives islands where it has a sizeable export business. But since it sees great potential in the domestic markets, it plans to concentrate on the same.

Fibre2fashion spoke exclusively to Mr Hanif Sattar, Director of the Chennai based Hasbro Clothing, who said, “The total number of stores that we plan starting today till end of March 2011 is 25 stores and the reason to have a buffer of February and March of this year is primarily to factor the delays that we encounter in locations being handed over by the developers/ landlords over which we have no control.”

He continued by saying, “The locations are spread over the four states in the south, apart from which we will target Maharashtra and West Bengal and the spread in these states will be an equal blend of metro and "A" & "B" towns.”

When asked about the objectives of opening stand-alone stores, he replied by saying, “The reason for opening stand-alone stores is to be clearly able to offer a lifestyle solution in the men’s apparel branded space, as our primary aim is to provide tremendous value to the customer and not necessarily in the conventional manner by just being conscious of costs but blending this aspect with an experience which is clearly world class.”

“This will also result in that when a customer walks into the store there is a marked difference in what he experiences both in shopping environment and in product/ range offering as opposed to the other brands in the same space, with all this leading to heightened brand awareness and uniqueness of the store and the brands that it sports in comparison to what is available in the market.

"Benchmarking of retail experience, leading to enquiry for opening more such stores in new territories, enquiry for selling the brands in leading Mbo's and preparedness in terms of selling points which will capitalize media spend”, he concluded by saying.

Tuesday, February 16, 2010

Franchises For Rural India : Franchising Creating Livelihood For Low Income Group Entrepreneurs

AMWAY INDIA TODAY WOMAN EMERGING ENTREPRENEUR AWARD

Richa Pandey Mishra, Founder, eJeevika HR

CITATION: For creating an employment network that successfully bridges the skill gap and helps rural youth connect with high growth industries.

Profile: For creating an ICT based training and placement bureau that provides training and a guaranteed job within the vicinity of the village at an affordable price.

The company works on partnership with local internet kiosks to provide training and placement to rural employable youth. It has placed more than 250 candidates to date. A trained candidate gets a salary ranging from Rs 4,000-Rs 10,000 and works on a franchisee model where the local internet centers share 50 per cent of the revenue generated from the candidates.

Saturday, February 13, 2010

Oryzz Rice Homes Franchising Rice From Millers To Consumers

Rice malls in Bangalore to supply below market price

BANGALORE: There is good news for Bangaloreans on the rice front at these times of soaring food inflation.

As many as 12 rice malls in different parts of the city are set to be opened on Wednesday, offering 60 varieties at six to eight per cent less than the market price.

Branded ‘Oryzz Rice Homes’, the idea is to sell rice under the concept mill-to-homes by cutting brokerage charges in the supply chain management. These chain of malls is a joint venture between rice traders Ramoji Agro Pvt Ltd and online rice trading por tal Rice India.

The target is middle-class homes, the Managing Director of Ramoji Agro, Mr Ramojam, and CEO of Rice India, Mr Shashikumar Thimaiah, told reporters here on Saturday.

“At Oryzz Rice Homes, rice will be supplied directly from the mills to customers. This system will avoid the middlemen and hence the customer will get high quality rice at a competitive price which will be 6-8 per cent less than the market price,” Mr Ram ojam said.

The company plans to open more than 50 such malls in the city going forward; at a later stage it is looking at the district and taluk-levels for a similar venture under franchise model.

It has already tied up with some rice millers in states such as Tamil Nadu, Andhra Pradesh and Kerala.

The company will invest Rs 6-10 crore for the first dozen malls which will offer varieties in the range of Rs 12-42 per kg.

Thursday, February 11, 2010

TT to expand to 50 franchise stores by end of 2010

Knitwear and fabrics brand TT on Thursday said it will expand its exclusive retail chain and introduce new ranges in the premium segment for women and kids as part of its plan to achieve a turnover of Rs 200 crore from its garment business by next fiscal.

“Our strategy is two-pronged with focus on both market expansion and product expansion. We are aiming to increase the turnover of our garment business to Rs 200 crore next fiscal,” TT Ltd Joint Managing Director Mr Sanjay K Jain said.

TT had a total turnover of Rs 250 crore in 2008-09, of which the garments business contributed Rs 50 crore and the figure is likely to touch Rs 100 crore this fiscal, he added.

Mr Jain said TT will expand both its exclusive retail chain and roll-out new ranges as part of the business plan.

“Last year we started our concept of small neighbourhood stores (which) operated on the franchise model and so far we have opened 20 such outlets. Our aim is to have 50 such stores by end of 2010,” he said.

Regarding product diversification, Mr Jain said: “In the innerwear segment, the focus is on our premium brand ‘Coco Tree’ and we will roll-out the entire range for ladies and kids by March. Besides, we are also coming out with a special range of premium casual wear like T-shirts and pyjamas.”

The company, which specialises in innerwear and casual wear, also said it will also be expanding its dealership network across the country to grab additional share in the Rs 15,000 crore Indian market. - PTI

Wednesday, February 10, 2010

Franchise Management Programme For Entrepreneurs In India

Indian Franchise Association (IFA) has launched an interactive Franchise Management Program at the Mudra Institute of Communications, Ahmedabad (MICA).

To be implemented in a module format, the program will introduce aspiring entrepreneurs at MICA to the intricacies of franchising and establish the strategic approach by posing various case studies. "An entrepreneurial spirit is critical for franchising. Many entrepreneurs take up franchises but they are not hugely successful because of the lack of entrepreneurship in the franchisee. In order to address this and many other aspects of franchising for entrepreneneurs, we decided to launch this program for the students of MICA's entrepreneurship development centre,” said Gautam Raj Jain, chairman, entrepreneur program, MICA.

The conjunction with MICA is the first initiative of this kind for IFA, which plans to announce similar ventures with other premier institutes shortly. "Through this program, we want the aspiring entrepreneurs among our students to go global in their ventures day one onwards," said Ashok Ranchhod, director, MICA.

With such initiatives of franchise education and on training and nurturing entrepreneurs on all aspects of franchising is a healthy sign for the franchise industry, we definately see the programme adding to the growth of franchising in India.Typically today the entrepreneurs are only subject to franchise websites, franchise magazines and franchise exhibitions where they get to meet the companies directly and are not able to correctly understand everything they need to before they get started with taking up a new franchise.We hope that the course will be able to highlight these issues and help the entrepreneurs

Birla Kerala Vaidyashala To Start 150 Franchises over the next 5 Years.

Yash Birla Group-owned, Birla Kerala Vaidyashala plans to hit the capital markets with its initial sharesale by the middle of next year, a top company official said.

The company, which came into existence with Yash Birla Group acquiring a majority stake in Kerala Vaidyashala last year, plans to file the Draft Red Herring Prospectus with the market-regulator SEBI, BKV's managing director & chief executive officer, Harshajeet Kuroop said.

"We are planning to enter the capital market by mid of next year. We will soon file a Draft Red Herring Prospectus with the SEBI," Kuroop told PTI here. However, he declined to divulge further details about the proposed issue.

The Rs3,000 crore Yash Birla group entered the health and wellness segment with the acquisition of the Kerala-based ayurveda spa chain.

As part of its expansion plans, the company aims to open about 200 therapy centres pan India over the next 5 years with an investment of Rs 50-crore, he said. Presently, it has 20 such centres.

"The centres will be mostly on franchise basis and about 50 of them will be company owned. We will invest over Rs50 crore to open all the 200 centres," Kuroop said.

"These centres will provide treatment for lifestyle disorders and chronic disorders, for which treatment is not available with the conventional medicines," he said. The company today launched the country's first Mobile Spine Clinic in the city, which, it said is the first of its kind in the industry.

The Print Shoppe Franchise Opportunity

"the print shoppe" a wholly owned brand of SUDARSHAN a partnership firm based in Surat has brought an advance printing solution which will enable printing on many products in the retail market. Printing on Mugs, T-Shirts or any other material was possible, but we have brought a completely new solution for the retail printing said Mr.Nilesh Patel, director of "the print shoppe". Printing on Mugs, T-Shirts are absolutely possible in today's market using heat transfer and which has already opened the retail format of printing business in Indian market, our printer has a different functions compared to the heat transfer said the Director, we are offering printers to our franchise outlets which can print any material directly on the surface. Lets say if some one needs a mug, T-Shirts, Real Flowers, Candles to be printed with their own pictures or for a gifting purpose, it can be printed directly on the surface without using HEAT TRANSFER.

"the print shoppe" has already opened their two outlet in India, one is located at Surat and recently their second outlet was opened at Nagpur. To bring the complete print retailing solutions they have also brought Flower Printing for the 1st time in India, which is never seen in the market till date. Best part of this franchise program is, those who may wish to become a franchise partner of "the print shoppe" can easily become a franchise with single one time investment of Rs.150,000.00. The easiest and the best opportunity comes with One Multifunction Printer & a computer. The bundle printer can print on Nails, Flowers, Mobile Phones, Tiles and many more.

Initial set up requires 7sqft X 7sqft of area in Malls, Multi plex cinemas, market areas or shopping complex, margin which is offered in this business is much higher & compared to any other business, is near about 100% to 400% depending on different prints and sizes.

Our goal is to create a good brand name of "the print shoppe" by offering highest quality materials and the best services offerings, imagine of the products you always want to have printed with your own or selected pictures was never easy before, now you can see them get printed in front of you, you can customize them the way you always wanted, said Mr.Nilesh Patel. We target to open 150 such outlets including kiosks in India by the end of 2010 with our commitment of providing higher quality materials and best services, as all our franchise outlets are committed for serving retail customers whenever and wherever it is required.

With other brands like Presto, Myntra, Kodak already operational in the similar space, the company is looking at all tier 1& 2 cities of India where it could offer its low cost franchise, a service franchise to deserving entrepreneurs.

Sunday, February 7, 2010

Lingerie Brands Take To Franchising For Their Expansion

The term ‘lingerie’ is synonymous with fashionable innerwear for women today. Since the past few years, the lingerie industry has created a niche for itself in the apparel manufacturing industry in India. The sector offers a wide array of products that cover various aspects from fashion and styling to fine fabrics with a superior finish. The credit goes to the changing lifestyles and improved purchasing power. With time, the Indian women are getting more aware in terms of selection of lingerie. The demands of the contemporary women for branded lingerie have helped the growth of lingerie industry in India. If you desire to start a business in the lingerie industry, then taking up a franchised outlet of a well established brand is the best way forward.

The lingerie industry offers great opportunity for women to garner a fair share in the men’s business world by taking up the franchise of a well known brand. However, the opportunity is not limited to women; men also can establish themselves in this sector by opting the franchise way. As per Dalbir Bains, Founder, Boudoir London, “We encourage female entrepreneurs as we want all franchisees to be hands-on and the store to be a women-only environment. Men can apply for the franchise but need to be aware that women run the store and they would need to employ a high calibre female store manager who can deliver the objectives.”

Growth of lingerie industry in India

The lingerie industry in India is going through a rapid metamorphosis as the size of the organised market is increasing with the rising number of renowned players entering the sector. The growing income coupled with the changing lifestyles has renamed the undergarments as ‘fashion clothing items’. The lingerie segment has created a place in the apparel manufacturing industry of India and is anticipated to increase the share of the organised lingerie market in the next five years. From being a market worth Rs 780 crore in 2003, the organised lingerie market has almost doubled to Rs 1645 crore by 2008.


Key players of the sector

The Indian lingerie industry has enormous growth potential, manifested with the entry of many international players such as Lovable, Triumph, Etam, Jockey, Aubade, Boudoir London and many more. These international brands are successfully expanding in India through franchising. Besides these, there are few well recognised Indian brands like Groversons, Maxwell Industries (Vanity Fair, Daisy Dee and other brands) are also increasing their horizons across the nation via the franchise route. However, most of these brands do not cater to a single brand rather they deal in a number of other brands also.

Eligibility criteria for taking up the franchise

To own a franchised outlet in the lingerie industry, a franchisee is expected to have at least some knowledge of the lingerie market and the international products in India. A retail or customer service background will be an added advantage as prior experience is definitely going to enhance the results of a franchisee. As Dalbir says, “An aspirant needs to be financially sound, energetic and keen to be a part of the great franchise legacy.” Importantly, a franchisee is expected to maintain the standard of the company’s proceedings and product quality.



Franchise offering

Being a franchisee, your franchisor will guide you all the way to establish the franchised brand and business at the local level. As per Dalbir, “We firmly believe that the franchisees’ success is our success, so we work hand-in-hand with all our franchisees.” The franchising company will help you in the layout of the outlet, customer service and creating a customer friendly environment. The franchisor will provide you a detailed description of the company, its business and operational strategies. The franchisee and his/her staff will be provided with a supportive training programme to ensure consistency amongst service levels in every store in the country. Every possible back-up support is offered to the franchisees with regional managers being assigned in each area. This way the parent company stays in touch with the franchisees and keeps a check on their performance to avoid franchise failures.

Now, if you think that this is the kind of prospect you have been looking for, then its time to take this opportunity and make it big for yourself by opting the franchise of a well reputed brand.

Source:Lingerie Industry Blossoms With Franchising
Ramanjit Kaur | Feb 5 2010.

Monginis Bakery Franchise Looking at opening 50 more Outlets by 2010.

Mumbai-based leading bakery chain, Monginis now plans to open 50 more outlets across the country by end of the year 2010, after a recent store launch in Indore. The company also plans to double its retail distribution from the current retail network of 15,000 stores across the country.

Elaborating on the Monginis' expansion plan, Zoher Khorakiwala, CMD, Monginis Pvt. Ltd. said, “After Indore, the cities where we are planning to roll out our exclusive cake shops at Kanpur, Lucknow, Raipur, Chennai and Bengaluru. We are currently looking out for suitable franchising partners for these locations and it will take some time for us to decide on Monginis’ manufacturing franchisee.”

Monginis is looking at locations with minimum carpet area of 200 sq ft and are looking at opening more stores with the Strategic Business Unit (SBU) setting ambitious plans for the retail distribution expansion.

Hence eyeing a prominent expansion strategy in the burgeoning bakery market in India.

Source:
Monginis plans to open 50 outlets across India by year-end
Saturday, February 06, 2010, 10:00 Hrs [IST]
By HBI Staff | Mumbai

Friday, February 5, 2010

Natuzzi & Italsofa to franchise in India and have 70 stores by 2012

Italian premium leather upholstery player Natuzzi Spa said on Friday it will enter the Indian market by June-July with plans to emerge as a leading player in the estimated $9.4 billion furnishing industry in the country.

The company said it will open its first two flagship outlets in Delhi and Mumbai, and has set a target of opening 70 points of sale across the country by end of 2012.

“We will introduce both our brands -- Natuzzi and Italsofa -- in the country and our aim is to have 70 points of sales across India of the two brands together by 2012. We will explore multiple formats like flagship stores, mono-brand smaller outlets and galleries in form of shop-in-shops,” Natuzzi country manager India Nitin Bahl told PTI.

He said the company will enter the Indian market through the franchise route and investments will be made primarily by individual franchise operators.

“Our target is the 12-lakh Indian households with an annual income of over Rs10 lakh. While the Natuzzi brand will be for the major metros, Italsofa will also target Tier I cities like Pune and Chandigarh,” Bahl said.

He said the company is looking to clock a revenue of at least 25 million Euro (around Rs162 crore) from the Indian operations by 2012.

The USD one billion firm is one of the few furnishing companies listed on the New York Stock Exchange. It currently has over 350 galleries and flagship stores in 123 countries.

Wednesday, February 3, 2010

Franchising World Over and Franchise In India

World Over, franchise contracts are typically governed by the laws of the land. In the United States, franchising falls under the jurisdiction of a number of state and federal laws. Franchisors are required by the Federal Trade Commission to provide a uniform Franchise Offering Circular (UFOC), to disclose essential information to potential franchisees about their purchase. States may require the UFOC to contain specific requirements but the requirements in the state disclosure documents must be in compliance with the federal rule that governs federal regulatory policy. There is no private right of action under the FTC Rule for Franchisor violation of the rule, but fifteen or more of the states have passed statutes that provide a private right of action to franchisees when fraud can be proved under these special statutes.

In the United Kingdom, on the other hand, there are no franchise specific laws, franchises are subject to the same laws that govern other businesses. Some self regulation exists through the British Franchise Association (BFA).

Over the last 15 years, franchising as a format of retail expansion, has gradually matured international franchising is also in an interesting phase in India as global organizations like Pizza Hut, Marks and Spencer, McDonald’s, Subway, HP, Holiday Inn, Medicine shoppe, Domino’s, Gold’s gym and Kentucky Fried Chicken have set up franchises in India.

Industry sources claim that, franchising in India has been clocking a 60 % year on year growth which is likely to accelerate to 100 per cent over the next five year period. In India three are close to over 40,000 franchisees with an annual turnover anywhere between Rs 8000-Rs 10,000 crores from franchising. It is estimated that the total investments made by franchisees is over Rs 5000 crores and over 300,000 people are directly employed by franchised businesses.

The Franchise showrooms of various readymade garment manufacturers like Arvind, Madura Garments,Levis, and others like Titan, Tanishq, Gitanjali perhaps the most visible successes of franchising in India. One of the pioneers in this field, in the area of beauty and personal care products has been Shahnaz Hussain. Today, the chain of Shahnaz Hussain parlors has more than 200 franchisers in India. As the economies evolves, retail as sector continues to grow, various new avenues in franchising are emerging on the Indian franchise scenario. Education is a key area in India, where there have been significant developments in franchising. The IT education sector is fairly substantial at 40%. Franchising in the IT enabled services sector stands at 14%. The portfolio in the education sector is diverse – from children education in computer basics to expertise in languages and competitive exams including foreign universities admission exams. In the education category, NIIT,Aptech,Euro Kids and ZILS are performing well. Instead of large pool of IT talent, NIIT is aiming to nurture rightly skilled manpower which is industry ready and high on the employability index.

Franchising is also gaining acceptance among online companies as a means to expand their network and other personalized services. Shaadi.com is one such dot.com which is considered a success in franchising in India, with 153 Shaadi.com centers across 87 Indian cities. Shaadi.com saw an opportunity to further its offerings through the franchise model, and hence, launched Shaadi Point which is an example of an online business doing very well in the brick and mortar space through franchising in India.

Franchising is useful as it is characterized by quick reach, but a franchiser network has to be managed, and a franchise needs to make money, so it does have its challenges like maintaining consistency of brand, brand equity and quality of service.

Many international retailers are also tapping the Indian market through franchising. Britain’s coffee chain Costa Coffee, is one such example, who is eyeing massive expansion across the country. The international chain, which entered India in September 2005 through a master franchise, has long term plans top open 300 outlets in the next three to four years. It would be looking at an investment of over Rs 150 crore. Besides opening new stores, the coffee chain is also introducing the concept of cart and kiosk in corporate offices. While the kiosk model is a full fledged structure that serves the entire menu of Costa F&B, the cart model is a smaller version, a hot counter that serves only coffee.

Franchising is growing world over and as the new developing economies are embracing quicker responsible growth they are looking at franchising as a suitable option for growth.We will see the next big franchise stories emerging from these developing markets.

Monday, February 1, 2010

Central Cottage Industries (CCIC) offers India Handicraft Franchise For New Zealand.

The New Delhi based Central Cottage Industries Corporation of India Ltd (CCIC) is keen to establish its Cottage Emporium showrooms in New Zealand on franchise basis.

The prospective franchisees could be of Indian origin, familiar with Indian handicrafts and handlooms, although this would not be a condition.

But the showrooms should be named ‘Central Cottage Industries Emporium’ and deal with goods sourced only from the CCIC.

The state-owned company operates as an independent commercial entity with showrooms in India and Denmark (Copenhagen) and believes there is ample potential for its extensive product range in New Zealand.

Its merchandise includes carpets, shawls, fabrics, sarees, artifacts in sandalwood and other woods, metals, silver jewellery and other crafted objects from diverse regions of India.

CCIC Managing Director M A Ibrahimi said the company had worldwide customers and that foreign showrooms would cater to the growing demand for its quality products.

“We propose to open showrooms in overseas markets on franchise basis. Under this arrangement, the investment and expertise of the partner in a foreign country and the strengths of CCIC in sourcing of handicraft and handloom products can be combined to meet the expansion needs of the marketing of handicrafts,” he said.

He said the company was exploring the possibilities of opening one showroom initially in New Zealand, probably in Auckland and gradually expand to other centres.

“The Franchisee may determine the price of the products and undertake marketing and other promotional activities in terms of the agreement,” Mr Ibrahimi said.