There are numerous ways to start a business in India when it comes to retail. You can start your own sole proprietorship, whether it’s an online store or a physical location. This will allow you to have total independence with little help. This article describes how to expand a retail franchise business in India and its benefits.
That’s where retail franchising comes into the picture. The process of operating a retail location under the protection of a well-known name, brand, trademark, and product line is known as retail franchising. We are surrounded by franchise businesses. Many of these are the ones we use to make our purchases the most frequently.
Opening a retail franchise business in India has a distinct set of guidelines, requirements, and abilities. This is in comparison to starting a sole proprietorship. This article will describe how retail franchises operate, discuss some benefits and drawbacks of running this kind of retail enterprise, and offer some fundamental steps for getting started.
How to expand a retail franchise business in India in 5 Effective Steps
Are you a business owner trying to figure out how to grow a retail business in India or how to improve an existing retail business in India? Read on to learn more.
Let’s look at the top 5 steps to expand a retail franchise business in India.
Step-1: Setting up a New Location
One of the most obvious strategies to grow your business is to be present in a new area if you want to expand your retail operation. This must be a deliberate choice. Therefore, creating a new website requires a significant amount of work and frequently entails a significant financial outlay.
Remember that expanding your company needs more than just opening extra locations of your current store. Even though you want to expand on a successful concept, a new location will attract new customers. It’s possible that what worked in one town or city won’t work in another.
Make sure you keep the same procedures, guidelines, channels for communication, multi-location POS, payroll, customer care, etc., to ensure consistency across all of your sites with your operations and retail logistics.
This makes it straightforward to compare numerous locations or key KPIs between stores. Onboarding and training of the staff should be well-organized through streamlining processes.
Opening at a new location while taking a few important KPIs into consideration is a tried-and-true way to grow your business.
Step-2: Promote on New Platforms
For the purpose of marketing their products, retailers are fortunate to have more sales channels available than ever before. Expanding your business more safely and affordably involves diversifying into new sales channels.
Promoting on new platforms comes with its own set of benefits, like:
- The greatest way to start is with your own online store. Now more than ever, it’s easy to set up a basic online business.
- Online markets run by third parties are even easier. If you don’t have the time or finances to build your own consignment business, selling on online marketplaces like Amazon or eBay makes it simple to get started without making a significant investment. They generate money from each sale through a commission, similar to a consignment shop.
- Not to mention, social media has developed into a rapidly expanding sales channel, especially if you already have a sizable fan base and a strong brand presence on Facebook, Instagram, or Pinterest.
You can either link your e-commerce site to posts on the social networking site itself or sell directly there. This process has been made even simpler with the addition of extra services that streamline the acquisition process and almost eliminate the seller’s burden.
Step-3: Enhance Your Product Portfolio
A great strategy to expand your product offerings is in the retail industry. Rolling out new products or services is a fantastic idea as long as the expansion is compatible with your current brand image.
If you do decide to grow your product line, remember to test each new item and evaluate how it performs in comparison to your current ones. Use a retail point-of-sale system to make this simple.
You can quickly evaluate the performance of each new product thanks to detailed product reports, which also give you the information you need to decide which option is best for your company.
Step-4: Launch pop-up stores
Pop-up shops are a great way to promote your brand and educate customers about your store. They are an easy and affordable way to grow your company.
Other significant advantages they have for the expansion of retail include:
- Pop-ups advertise brand awareness and inform clients.
- They are a straightforward strategy to get some media attention.
- Testing a new product to see how well it sells is one option.
- You can utilize them to shift inventory to free up essential warehouse space slowly.
Therefore, don’t undervalue the power of pop-ups because they are the first step towards a bold retail expansion.
Step-5: Get associated with businesses.
Working with another well-known company to offer a new product or service is the most reliable plan for business growth. You are then entitled to forego the majority of the initial investment. The organization with which you are collaborating already has the resources and infrastructure needed to reach your target audience.
For example, find a nearby store that sells clothing for young adults. If you currently sell children’s clothing and also are considering doing the same in the outlet of the collaborating company.
Request that they keep a few of your test products on hand and monitor their performance.
Successful Retail Business Strategies in India
It’s easy to find a successful retail sales strategy when you’re excellent at the basics. Here are some retail sales techniques to help you expand your business, whether you are a seasoned vendor or just starting out:
A few tried and tested successful retail strategies in India
- Know your clients’ characteristics – The best retail sales plan for the development of your small business is this one. Understanding helps you develop a thriving niche for your shop.
- Clients that can afford to pay the full price – Good customers will pay for answers to the one query that all shoppers have: “What’s new?”
- Great windows, an interesting website, a blog, and social media can all help you draw in new clients – Provide full-price customers with a consistently high-quality experience when you want to attract them.
- Keep your sales staff happy – There is a reason why many small retail businesses remain small; they think modestly and also strive to keep expenses to a minimum.
- Continuously provide your staff with training – Never take anything your staff do for granted, including how they answer the phone, welcome customers, offer your products, etc.
- Curate your product – Customers are not searching for new lines, vehicles, or options. Your clients are trying to choose the finest option. Showcase a selection of goods that clients can easily tell have an edge over their competitors.
- Engage the client in the best possible way – Urge your salesperson to find a method to interact with the client in a conversational manner, to be a resource. This with thus enhance the client experience.
- Encourage clients to return frequently – “Thank you” is acceptable, but the finest salespeople find a way to walk around the counter.
- Livestream on Social media platforms – Social media is for more than delivering discounts, promotions, and product photos.
According to a recent article published in The Economic Times, leading shoe brand Adidas India has partnered with the CK Jaipuria Family to expand its retail presence nationwide. To know more information, check out this news source.
FAQs
Q.1: How does retail franchising work in India?
In the retail franchising business model, a franchisor issues a license to a franchisee to use its trademarked goods, services, and brand. The franchisee then opens and also runs a retail store using the franchisor’s business model.
Q.2: What are the different types of retail franchising in India?
There are five types of retail franchising: single-unit, multiunit, area development, master, and also conversion franchising.
Q.3: How do you know if retail franchising is right for you?
Entrepreneurs can gain business ownership experience through retail franchising without making some of the common mistakes made by startups. By putting in place a tried-and-true system of operations, your business will be much more established from the start.
Q.4. What are the top retail store franchise opportunities in India?
Brands like – Big Bazaar, JioMart, Patanjali, PC Jewellers, and also Truemart Supermarket, are some of the top retail stores in India.
Conclusion,
We hope you have got a fair idea of – “how to expand a retail franchise business in India”. Feel free to leave a comment in the space provided below if our article has provided you with any additional information or insights that will be helpful to you as you plan to expand your company through retail franchising in India.
Furthermore, Sparkleminds has helped businesses just like yours grow for more than 22 years. Thus, get in touch with us right now to find out more about how we can support your company.
