Leading digital imaging company Canon India will open six outlets in various cities in the country over the next few months. According to the Canon India Senior Vice-President Alok Bhardwaj, these outlets name 'Prozone' will display its 160 products under one roof and would be set up on the franchise model in Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad during the next few months.
The company was witnessing tremendous growth in Tier-II cities on sales of its flagship model 'digital single lens reflector (DSLR)' cameras. The company had only three exclusive outlets so far-in Bangalore, Gurgaon and Mumbai. He added that they were getting a huge response particularly in the mid-end DSLR cameras.
The lower-end Canon cameras range between Rs.26,000 to Rs.50,000, while the mid-end between Rs.50,000 to Rs.1.50 lakh and the high-end cameras were priced above Rs.1.50 lakh. Bhardwaj told that the company had launched the new DSLR Electro Optical System (EOS) 7D with new features in the mid-end category, priced at Rs.1.10 lakh. The EOS 7D has a resolution of 18 megapixel and features a lock, which helps camera setting s not to change without the knowledge of the photographer.
He also mentioned that this year witnessed the highest growth in the sales of DSLR cameras despite the global meltdown. The company grew over 30 per cent in the last three years. Canon India is the currently the market leader in DSLR Cameras. It has 54 per cent market share. South India was the largest market for Canon, contributing 28 per cent on its total sales.
Canon India currently has 10 exclusive service centres across various cities. The company reported a turnover of Rs.665 crore last financial year and hopes to reach Rs.830 crore this financial year.
Source:Paisewaise.com
Showing posts with label franchiseindia. Show all posts
Showing posts with label franchiseindia. Show all posts
Tuesday, December 8, 2009
Monday, December 7, 2009
McDonalds Real Business Burgers or Real Estate
Last time when I went to McDonald’s outlet in Delhi with my nephew (my sis’ elder son), I decided to irritate him a bit. I just love it when he is frustrated with my questions. He is all of 8, but just like any other kid, outspoken and naughty.
I wanted to give him a tough time and as we entered McDonald’s outlet, I told him that I am not going to buy him a cold drink if he is not able to answer my answer which obviously was to irritate him and he was definitely going to have the cold drinks irrespective of his answer.
“So, Chummu (his nickname) tell me what do McDonald’s sell?”, the moment I asked this question, he frowned at me as if I am a fool or trying to make fun of him by asking this stupid question. He didn’t uttered anything for next two minutes and was double checking at the back of his mind whether the answer he is going to say is correct or not.
I reiterated, “Chummu tell me what is the business of McDonald, what do they deal in?” The purpose of irritating him was seeing some accomplishment as I started smiling and he finally opened his mouth – “mamu don’t make fun of me! They sell burgers aur kya.” I knew this was coming and then started tweaking the question which was not his cup of tea.” Hey dude! I agree with you that they sell burgers but selling burgers is not their core business.
I mean they don’t make enough money from selling burgers. So, what is it which fetches money to them?” The mercury was rising as he could not counter me and made a second guess that McDonald’s then must be making enough money from cold drinks.
On the face of it, Chummu is absolutely right that McDonald’s sell burgers and cold drinks and it is a common perception too. McDonald’s do sell burger but they don’t make enough money from selling burgers as they do from real estate business. Yes, this is what they do in most of the countries abroad. Close to 15% outlets are owned by McDonald and as per their business model which is completely different from other food chain models, they charge rent on the basis of sales. Apart from this, as in case of normal franchise business they also charge franchise fees and marketing fees.
The former CFO of McDonald’s CFO, Harry J. Sonneborn is often quoted as having said -
“We are not basically in the food business. We are in the real estate business.”
“We are in the real estate business. The only reason we sell hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent.”
It is a common belief among masses that McDonald’s, the largest chain of fast food restaurants is a market leader in hamburgers which is true but actually it is a real estate power house. It is the largest commercial real estate landowner in the United States. McDonald’s property portfolio was estimated to be valued around eight billion dollars, as of 2001. To explain it further, McDonald’s makes money on real estate by buying and selling properties which are generally restaurant lots. On the one hand, it invests in hot locations while under performing locations are also sold out to balance the portfolio.
Well !! Chummu is too young to understand the business model of McDonald’s and he finally had his share of cold drinks but next time you don’t lose on yours if someone asks you – What is the business of McDonald’s ?
SOURCE:Amit Khandelia on forum4ca.com
I wanted to give him a tough time and as we entered McDonald’s outlet, I told him that I am not going to buy him a cold drink if he is not able to answer my answer which obviously was to irritate him and he was definitely going to have the cold drinks irrespective of his answer.
“So, Chummu (his nickname) tell me what do McDonald’s sell?”, the moment I asked this question, he frowned at me as if I am a fool or trying to make fun of him by asking this stupid question. He didn’t uttered anything for next two minutes and was double checking at the back of his mind whether the answer he is going to say is correct or not.
I reiterated, “Chummu tell me what is the business of McDonald, what do they deal in?” The purpose of irritating him was seeing some accomplishment as I started smiling and he finally opened his mouth – “mamu don’t make fun of me! They sell burgers aur kya.” I knew this was coming and then started tweaking the question which was not his cup of tea.” Hey dude! I agree with you that they sell burgers but selling burgers is not their core business.
I mean they don’t make enough money from selling burgers. So, what is it which fetches money to them?” The mercury was rising as he could not counter me and made a second guess that McDonald’s then must be making enough money from cold drinks.
On the face of it, Chummu is absolutely right that McDonald’s sell burgers and cold drinks and it is a common perception too. McDonald’s do sell burger but they don’t make enough money from selling burgers as they do from real estate business. Yes, this is what they do in most of the countries abroad. Close to 15% outlets are owned by McDonald and as per their business model which is completely different from other food chain models, they charge rent on the basis of sales. Apart from this, as in case of normal franchise business they also charge franchise fees and marketing fees.
The former CFO of McDonald’s CFO, Harry J. Sonneborn is often quoted as having said -
“We are not basically in the food business. We are in the real estate business.”
“We are in the real estate business. The only reason we sell hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent.”
It is a common belief among masses that McDonald’s, the largest chain of fast food restaurants is a market leader in hamburgers which is true but actually it is a real estate power house. It is the largest commercial real estate landowner in the United States. McDonald’s property portfolio was estimated to be valued around eight billion dollars, as of 2001. To explain it further, McDonald’s makes money on real estate by buying and selling properties which are generally restaurant lots. On the one hand, it invests in hot locations while under performing locations are also sold out to balance the portfolio.
Well !! Chummu is too young to understand the business model of McDonald’s and he finally had his share of cold drinks but next time you don’t lose on yours if someone asks you – What is the business of McDonald’s ?
SOURCE:Amit Khandelia on forum4ca.com
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