How big brands such as Ritu Kumar and the Arvind Store are leveraging franchise model?

Ritu Kumar is one of the leading designer brands in India. Mrs Kumar is the first woman to introduce the boutique culture in India under the brand name Ritu.
How big brands such as Ritu Kumar are leveraging franchise model?

Franchising is undoubtelly one of the most trusted ways of brand expansion. It is the best strategy to choose the brand which is already known among the potential customers. Here we present few such brands which have aleady settled the niche in their respective feild of operations. And, choosing them for frenchise per se could be lucttrative deal.

Ritu Kumar

Ritu Kumar is one of the leading designer brands in India. Mrs. Kumar is the first woman to introduce the ‘boutique’ culture in India under the brand name ‘Ritu’. Since 1969 she has developed a unique style of her own, reflecting the ancient traditions of Indian craftsmanship in a contemporary vocabulary.  The brand is extremely popular among elites and aspirational to many. 

The brand has started franchise expansion since last year only and poised to add eight more franchised store over the span of next one year. The brand started the franchise model just to attain deeper market penetration. Highlighting the growth plans, Yogesh Samat, Chief Operating Officer, Ritika Private Limited (RITU KUMAR) said, “With robust network of offline stores, we already have a strong infrastructure on- ground to support our franchisees. And, with strong brand equity so our brand already recognized by potential customers by virtue of that franchisees will get benetted for sure.”

He also informed that the company plans to add 60 franchised stores and 100 company owned stores over the next five years.  

Franchised Facts:

No. of stores ( company owned + Franchised) : 68 company owned and  seven franchised

Investment Required: 50 Lakhs

Area required: 1000 sq.ft – 1500 sq.ft

Expected ROI: Above 22%

Expected break-even: two years

Preferred cities and locations: Metros and tier 1 

The Arvind store

The Arvind Store aims to create an enriching shopping experience through the convergence of Arvind’s strongest competencies under one roof. The store not only has the entire range of Arvind’s Shirting & Suiting fabrics but also offers super-premium products for the discerning customer.

The brand incepted in 2011 on franchise model and later took the route of company owned stores. Speaking on further brand expansion, Bhaskar Kelkar, CEO The Arvind Store & RTW, India said,” We should be adding another 300 stores over next four years with strong focus on franchising model.”  The company has aggressive expansion for tier II and tier III cities.

Franchise Facts:

No. of stores( company owned + Franchise stores): 108 company owned 70 franchised

Investment required: Between 40 lakhs to 50 lakhs

Area required: 1250 sq.ft.

Expected ROI: between 18% to 20% and should go upto 20%-25% shortly

Expected break-even: crore plus

Preferred cities and location: tier II and III 

Sports Station

Launched in 2015, Sports Station is positioned as a Sports Specialty Brand Hub, that brings the leading International Sportswear brands under one roof.A one-of-a-kind Multi brand chain in India, it boasts of a powerful portfolio including Nike, Adidas, Skechers, Puma, Asics, New Balance, Reebok and Lotto. The brand began its franchise operations in the year 2016 primarily to attain better operational control and go deeper in markets. 

SportsStation endeavors to bring a true Brand experience to its customers, and remains true to its motto of “MBO by Design; EBO by Character”. A complementing product strategy across footwear, apparels and accessories, ensures a “complete look” and a complete shopping experience to the customer. 

Highlighting the further expansion for the brand Pooja K. Sood, AVP – Multi-brand Business, SSIPL Group said, “The multi brand store aims at delivering a unique brand presentation, in turn creating an elevated consumer experience. We would be adding 100 more stores over next two years of which 60% to 70% would be franchised outlets.”

Franchise Fact:

No. of stores (company –owned + franchise):  40 company owned and 25 franchised

Investment required: Between 25 lakhs to 30 lakhs depending upon location

Area: 900 sq. – 1000 sq.ft

Expected ROI: By second year

Expected break-even: 7 lakhs

Preferred cities and location : tier 1 and tier II 



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