Business in India is growing at an exponential rate riding on the booming wherein greater demand for products in India is getting translated into greater demand for franchises and a long-term perspective.
 
Franchise Market Outlook – Consumption boom and rising disposable income of Indian households to strengthen growth
 
Franchise Market in India 2014 outlines how the entrepreneurial appetite has streamlined itself into the franchising concept in the country.Foreign companies have realized the potential of this business model and consider it as the most viable option while making a foray into the Indian market. Given the potential and the success rates of this operational model even established businessmen are attaching more weightage to this proposition, for their successors whenever they think of entrepreneurial ventures.An entrepreneur in the Indian market, today has the option to choose from over 4000 franchising opportunities in India, which in addition to international franchises, is simultaneously sowing the seeds of growth for domestic franchises. Though education still leads in percentage proportion of share in the total franchising business in India, other sectors like food and beverage, retail follow close in heels with health and wellness being another emerging sector opting for the franchisee model. (Source:http://www.whatech.com/market-research-reports/press-release/24102-franchise-market-outlook-consumption-boom-and-rising-disposable-income-of-indian-households-to-strengthen-growth)
 
Fitness conscious India boost active wear segment
 
With people taking to active lifestyle to remain fit, active wear segment in India is on a growth track. Big sports brands like Adidas, Puma, Nike and Reebok have taken note of this change and turned to be sports lifestyle brands in India. While the segment’s focus has been more on men’s category, the women’s category is seeing rapid growth.The active wear segment is estimated at 1.5-2 billion dollars (Rs 8,840 to 11,787 cr) in India growing at 12-15 percent, year-on-years. Continuing its global mission to change how people perceive and experience fitness, Reebok India, for example, recently announced the launch of its new, fully-integrated marketing campaign “Live with Fire” featuring cricketer M S Dhoni and Bollywood actors Nargis Fakhri and John Abraham. International brands continue experimenting with product, quality and design mix. Experts say the growth of this category is happening across markets from metros to Tier II, III towns. Smaller towns with a smaller base are demonstrating higher growth rates. (Source:http://www.fashionunited.in/news/fashion/fitness-conscious-india-boost-active-wear-segment-160720147291)
 
Sri Lankan brand Avirate to source from India
 
After registering double-digit sales growth post commencing operations in India, Sri Lankan women’s high-street brand Avirate may source its merchandise requirements from India. However, the company is not planning to set up a manufacturing unit or venture into men’s or kids wear business. Avirate is owned by the Timex and Fergasam Group whose manufacturing plants across Sri Lanka and Bangladesh make apparels for global brands such as Marks & Spencer, Next, Debenhams and Victoria’s Secret. Having entered India in 2011 it aims to be a Rs 100 crores brand in the next two years. Avirate has so far invested Rs 25 crores in its Indian business.With 22 years of experience in fashion business, Chawla will be responsible for growth in revenue as well as moving the gross margin. Gupta, a stalwart in retail industry with 14 years of experience will be in charge of driving the top line, store profitability and creating the expansion strategies for Avirat© India.(Source: http://www.fashionunited.in/news/apparel/sri-lankan-brand-avirate-to-source-from-india-180720147306)
 
Spanish fashion brand Zara crosses Rs 500-crore sales mark in India
 
Spanish fast fashion brand Zara, which opened its shop in India in 2010, continues its impressive run, having crossed Rs 500-crore sales mark. Inditex Trent, the joint venture between Zara brand owner Inditex and Tata Group’s retail arm Trent, clocked 43 per cent annual growth in its sales for the year ended March 2014 at Rs 580 crore, Trent said in its annual report released on Wednesday. “Zara’s merchandise is the main reason for its growth in India. The brand’s pricing and inventory rotation according to latest fashion trends have attracted consumers initially and they have stayed with the brand,” said Ruchi Sally, director at boutique retail consultancy Elargir Solutions. While Zara’s overall sales in India is higher than most of its global rivals, the number still trails its Italian peer Benetton, which has revenues of over Rs 600 crore on a wholesale basis. (Source:http://articles.economictimes.indiatimes.com/2014-07-17/news/51656567_1_zara-store-inditex-trent-massimo-dutti)
 
New Delhi entry point for most global retailers
 
Most global retailers opted to enter India by opening a store in the city or in Mumbai before expanding to other cities, says a study. The top four destinations preferred by retailers are New Delhi, Mumbai, Bangalore and Hyderabad, the CBRE study said. “Most of the international retailers surveyed for the study opted to enter India by opening a store in a major metropolitan city, such as New Delhi (79 per cent) or Mumbai (68 per cent), before gradually expanding their footprint to other tier I locations,” it said.”The India entry strategy for most global retailers from the CBRE survey continues to be guided by the economic and demographic dynamics of leading metropolitan cities,” it added. The study highlighted that global retailers have a presence in emerging locations such as Chandigarh, Ahmedabad, Ludhiana, Amritsar, Lucknow, Surat. (Source:http://articles.economictimes.indiatimes.com/2014-0721/news/51830940_1_international-retailers-cbre-study)
 
Global apparel firms increase sourcing from India
 
Owing to labour and compliance issues in countries like Bangladesh and Cambodia, India may be at an advantage when it comes to apparel sourcing by global fashion brands. Recently, Japanese apparel retailer Uniqlo showed interest in sourcing from Indian garment makers. Others, such as Gap, Decathlon, H&M, Zara and Marks & Spencer, are already sourcing from India. The Apparel Export Promotion Council (AEPC) has said that Uniqlo has asked them to identify the ten largest domestic clothes manufacturers and exporters with whom the Japanese firm could finally ink a tie up for exports. The government too is keen to push for such tie-ups keeping the country’s competitive advantage, such as low labour cost and steady availability of raw materials, in sight. While Cambodia has been in the news for using child labour, Bangladesh has been facing labour unrest and safety compliance issues. However, contradicting the views that increase in sourcing by global brands could bring a drastic change to country’s economy. (Source:http://banglaapparel.com/en/news/2014-07-23_16:50:16:0.714545001406112616.en.html)

 

However, it is apt to say that many foreign companies have realized the potential of doing their business in India market and consider it as the most desirable option while making their International expansion strategy

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