Franchising in India has been developing at an unfathomable speed since 2008. As per a recent report by KPMG and the Franchising Association of India, the industry is probably going to have quadrupled in size since 2012, making 11 million openings for work. It is likewise anticipated to be the source of around 4% of India’s GDP in 2017. More than 3,000 organizations – local and international brands alike – are currently utilizing the franchise model here.
The essential explanation or reason behind these fine figures is India’s consumption boom over the last two decades. With GDP expansion near 8% in the current financial year, India now has the fastest developing major economy in the world, outpacing even China. It has turned into a financial superpower, with its enormous market of more than one billion potential customers making it truly appealing to foreign organizations.
What’s more, this gigantic Indian market is not a normal one. The nation is seeing a demographic change, with a quickly developing middle class who are increasing disposable income and happily spending it on more luxurious and comfortable goods. This has brought about an interest for more prominent product choice and for higher quality, branded goods, which franchises are keen to deliver.
Over 65% of the Indian population is under 35, and India’s economy has basically moved from being farming based to service based. This has prompted a surge in youthful or young urban customers who have no issue purchasing using a credit and, thanks to international exposure, are willing to spend on pricey global brands. Speculations from the enormous foreign franchises are flooding in, with global pioneers, for example, McDonald’s already well established.
F&B is in fact the biggest division in the franchising business, with QSRs being the quickest developing format. Other solid trades are retail, health, and thanks to the average age of the population, education.
In India there is an expanding gathering of entrepreneurs who know that the franchise is a moderately safe plan of action. They know that they will pick up an established framework and years of knowledge from the franchisor, and also training and support.
Join their energy with the appealing Indian market and the government’s recent slackening on Foreign Direct Investment and it’s not hard to perceive why number of business pioneers are taking a look at India as a smart place to grow.