Home / Knowledge / News / Apparel/Garments / Huge potential for retail franchising in India: Report
Huge potential for retail franchising in India: Report
20
Jul '13
There is huge potential for growth of retail franchising in India, due to expected rise in consumption fueled by population growth, according to a recent report.
 
The report “Collaborating for Growth: Report on Franchising Industry in India in 2013”, released by KPMG, states that increasing consumption and willingness to spend, increasing purchasing power of the middle class, growing preference for branded and quality products among Indian consumers, increased global exposure and growing aspirations to adopt western culture and the use of international brands are the demand side factors that point at increased scope for retail franchising.
 
Similarly, on the supply side, increasing set of opportunity-driven competent entrepreneurs, increasing awareness of franchising as a business opportunity and its relative low risk profile, and Government initiatives such as the liberalization of FDI in retail which has allowed foreign brands to enter India are the factors that would augment the growth of retail franchising.
 
India drives about 2.5 percent of total retail sales through franchise formats compared to the 50 percent in the US, which indicates a huge potential for the market in future, according to the report.
 
The report suggests that allowing Foreign Direct Investment (FDI) in single brand & multi-brand retail is expected to generate interest among large international brands to adopt the franchising route to enter and expand in the country.
 
Many international brands have already entered India, adopting the franchise route to growth and have altered their franchise models to fit the Indian scenario.
 
However, several major international brands that are contemplating to enter the Indian market feel that the country’s growing and fragmented market can become a challenge for international franchisors to deal with, states the report.
 

Fibre2fashion News Desk - India


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Ahmad A. Al Sa’adi and Kwon Pyung-Oh display a comprehensive Memorandum of Understanding; Courtesy: Saudi Aramco

Textiles | On 21st Jul 2018

Saudi Aramco, KOTRA sign MoU for business cooperation

Saudi Aramco has signed an MoU with the Korea Trade-Investment...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Top executives
Textile industry

It will take some time for the people to change their buying choices

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search