India is known for immense business opportunities, be it for National as well as International brands. Various international brands have expanded their footprints strongly in India, either through company-owned outlets or franchising. If you are a business owner and are looking at expansion, then there is no better time than now, to learn how to franchise your business in India and then get started with the franchise marketing and recruitment activities. I will bring out reasons as to why this is the time to start franchising your business and go ahead of the competition.
India with a GDP predicted growth of 7.2% in 2017-18 is considered as the fastest growing economy and the land for business opportunities. The government’s initiative like Make in India, Digital India, Start-up India has made it an easier route for various MNCs to invest. This has also resulted in most unorganized businesses looking at the organized formats.
The improved standard of living, the advent of technology, higher income range of the people in India, has increased the demand for products with global appeal, giving rise to the growth of international brands. Several global brands seeking master franchises in India are tying up with local partners to capitalize on the market opportunities.
The year 2017 saw a huge change with Modi Government’s rolling out of GST and demonetization, gripping the country completely. Considering the impact of GST on business in India or the effect of demonetization on business, it was in a way boon for most of the businesses as there was uniformity in the tax payment system. The government saw a slump in the tax collection for the initial periods but is now well on its way with collection crossing approx. Rs. 1 Lakh crore for a single month.
Recently, Switzerland based company Bata, having a successful run in India, thought that business in India after demonetization would be affected hugely. Though they had their own share of pitfalls in the sales, still they were able to recoup without suffering many losses.
According to CFO of Bata Alberto Toni; “Demonetization was a little bit shocking and I am extremely proud how the Indian organization reacted. In our opinion, every struggle should come as an opportunity. Yes, our sales dropped for a couple of months, but at the end, we reacted well and we went through a wet period without suffering a lot. We are back on track.” How GST, demonetization came as opportunities for Bata
Franchising being an important business format, we can see international business franchise opportunities growing in India. Even In the case of Bata’s expansion, from Tier 1 and Tier 2 cities to Tier 3 and Tier 4 cities in India, they want to go the franchise way to capitalize quickly on the local market opportunities.
Though GST and demonetization have shaken the entire country, it has made a positive impact on various businesses be it real estate, small and medium business, automobile sector, restaurants, FMCG and several service businesses to name a few. GST has made the process of taxation easier for businesses with no multiple filing of tax returns, uniformity in pricing across the states and more. Hence this is the time to make the most of the changes that the country is witnessing and revamping the traditional way of doing business and embracing franchising as a way of quick and sustainable expansion in India.
