India becoming a hub for the major international brand franchise

Posted by santosh on December 30th, 2021

International brands have always found India to have a great ecosystem of growth for businesses. Over the years, India has witnessed the presence of some of the most acclaimed names in the business. In fact, the history of foreign brands exploring the Indian sub-continent for business goes back to 150 years, and today, India is the second-largest market for franchise businesses to flourish. There have been several contributing factors for the same.

When we talk about the popular international brands establishing their footprints in India, then we are also emphasizing that these businesses hail from different segments and have tasted success owing to their unique marketing and promotional strategies. What contributed to the growth of international brands in India is the franchise model.

Franchise businesses have emerged as a popular way of business expansion, but when expanding in a different nation, every brand needs to adapt to the trend and preferences of the local market. 

Well, every company needs to modify and amend its marketing policies as per the changing trend in the market. The Indian market has evolved over a period of time. The strategies that used to work years back might not be of any relevance in modern times, and so every company needs to understand what is the choice and preferences of their target customer and formulate their strategy.

What ensured the success of franchise businesses in India?

The franchise business has witnessed a growth of around 30-35% in the last four-five years. The overall turnover of the franchise business in India is estimated to be around INR 938 billion. In fact, the franchise businesses also contributed 1.8% to the GDB, and this is expected to reach a mark of 4% by 2022. 

As one of the fastest-growing economies and a country offering fair business policies, the business ecosystem has witnessed a tremendous boost. It has proved beneficial for the international brands to make their way to India and establish a strong foothold here. 

Franchise is a tried and tested model- Every business looks for expansion. They want to have several branches across the different states and even globally. While the this is alluring but it includes hefty investment, research, market study. Moreover, the international market has different legal norms, and for business expansion, every company has to undergo a tedious research and development plan. But with the franchise model, things become easier. Companies can easily delegate the franchise business to the prospective businessperson, and they can follow the business plan. 

In simple words, in the case of a franchise business model, the authorization is handed over to someone who takes the brand ahead in the respective cities. The condition of the franchise agreement is mutually agreed. The franchisee gets the benefit of a proven business model, support and assistance, and association with the brand’s name.
Lesser probability of failure- When compared to starting the business from the scratch, the franchise business model has a lesser probability of failure. As per the study of Oxford in 2016, 90% of the Indian status fails in comparison to 15% of the Also, recently India has replaced the UK to become the 3rd Unicorn nation globally. This clearly shows that there is a growing inclination towards entrepreneurship, and seeing the success of the franchise model, investing in a good franchise brand will be a great move.
Host of opportunities- India being a hotspot for many internationally acclaimed franchises to grow.Franchises from different industries segment like lifestyle, food and beverage, beauty and wellness, clothing brands, etc., are now ready to find a base in the Indian market. Recently, Brands and Branches, a renowned franchise consulting service provider, has got 10 international franchise brands on board; this means you will see many new names like Juicy Couture, Forever 21 salon, and more popping up in your city.
Growth potential of tier and Tier III cities- The market in India is expanding, unlike the earlier times, when we saw big brands anchoring themselves only in metros; today, most of the brands are eyeing the growth potential of tier II and tier III cities. Places like Lucknow, Kanpur, Agra, Ranchi have emerged as popular places for franchise business

Closing thoughts
These are some of the key contributing factors for the international franchises to have a strong presence in the Indian market. The growing income and higher percentage of the millennial population have opened up new avenues of growth for franchise businesses. 

About Brands and Branches

Brands and Branches is a trusted name and has many reputed brands on board. It has helped brands like Unplugged Courtyard, Romeo Lane,Raasta and others to grow in different parts of India, and now with ten new brands, there are going to be new names bustling the different parts of India. 

Visit us for more Details:https://www.brandsandbranches.com/sub-category/international-franchise