That people in India love eating and spending on branded clothes is well known, but the fact that they continue to do so despite salary cuts and layoffs has raised the expectations of the franchisee industry, which is estimated to grow at almost 50 per cent in the next few years.
According to a report by Ficci and Confederation of Indian Food Trade and Industry (Cifti), food expense constitutes 51 per cent of consumer wallets and thanks to this the franchisee industry is set to grow by 48 per cent in the next two years. The report notes that at present the size of the franchisee market is $7.2 billion, which is set to reach $20 billion by 2013.
“There are 1,200 active franchise concepts in India and over one lakh franchisees. Education and retail are important sectors where franchising is prominent,†a Ficci release said.
The Indian franchisee story is intact and is set to grow by leaps and bounds, said Safir Anand, senior partner and head of transactional practise Anand and Anand, and co-chairman, legal committee, Franchising Association of India. “At present, the US has the largest franchisee market in the world. India is aiming at the number 2 slot in a few years,†he said.
The franchisee business in the world is based on leveraging intellectual property (IP) and since China’s IP is “very poorâ€, India stands to gain, said Anand, adding that he was working with six clients who were looking for franchisee opportunities in India.
Read more.