Cashing In On Consumerism

Financial Express:

Imagine biting into a Chinese dosa in Lucknow, receiving orchids in Patna, slipping into a perfect fitted branded jeans in Meerut or visiting a branded spa in Palakkad.

Actually all of this is happening and happening at a break neck speed thanks to brand consciousness in smaller cities and towns. It’s no longer about knowing the latest trends, it’s also about sporting the latest brands, eating at the hippest restaurants, using the latest beauty products and studying at best institutes. It’s little surprise then that the franchise business has taken off in India like never before.

Experts say the franchise bubble is big and easily not the one to go bust for a while. So, what is it that is leading to the franchise boom? Gaurav Marya, president, Franchise India, an umbrella organisation of various franchise businesses in India, is himself surprised at the growth of this market.

Franchise India began in 1999. But the last 2 – 3 years have seen the franchisee business embark on a new growth path altogether. Agrees Marya, “Between 2004 and 2007, the franchised business systems grew in the country by almost 100%, and this proved a positive sign for small business development in India and the catalytic role played by franchising to spur the growth of the system here.”

Today, the acceptability for franchising is growing by the day and it has a fairly wide industry spread. Franchise India estimates show that that there are approximately 1,150 established franchisers, 75,000 franchisees with an annual turnover around Rs 12,000 crore. The business employs around 3.50 lakh persons.