Top five most popular franchised retail brands
Here is the sneak peek on top franchised retail brands with unique business model.BY Shipra Srivastava | Nov 14, 2018 | comments ( 0 ) |
VIP Bags is a leading luggage brand in Asia and the largest in India. Driven by innovation, VIP has always come out with products that are built for the future. This coupled with the dedication towards excellence, has helped VIP to be the market leaders over the last 40 years. Furthermore, franchise model has really fuelled-up the company’s growth. Today VIP has more than 500 franchise stores and increasing that number with every passing month.
VIP started franchising more than a decade back. Franchising becomes a win-win situation for all stake-holders – the company, the franchisee as well as the customer. It also gives the company greater control over the way your brands are retailed. The franchisee gets great brands to sell without having to commit a huge investment and the customers in more and more geographies get to experience their favourite brands in their own city. Highlighting the growth plans, Anirudh Pandharkar, Head of Marketing at VIP Industries Limited said “We plan to grow in excess of 20% year-on-year for the next 5 years. Having experienced very good growth across all new franchise units in the last few years, we are having aggressive plans to reach deeper into the country. We are opening new franchise stores every month.”
Year of establishment: 1971
Year to start franchising: more than a decade back
Total No. of stores:500 franchisee stores
Break up of company-owned + franchise stores:300 company owned + 500 franchisee stores
Area required (in sq ft):500 sq ft or more
Preferred cities &location: across the country
In the year 2014, Landmark group started conceptualizing the new format “Easybuy” as part of Max retail division. Max has been in India over 10 years and is the largest value fashion brand in India with presence more focused in Metro’s. Given the size and operational model, the cost equation was not viable for small towns. Also small towns are more price conscious and the company had to aggressively price in order to attain volume and scale. Hence it was decided to create a new vertical which focuses on “small town strategy” and thus Easybuy was born.
Today within 4 years, Easybuy is one of the fastest growing value fashion formats with 60 stores and growing. The company aims to cross 500 Cr turnover by 2020 with over 100+ stores across India.
Easybuy format has been built on a very strong growth model and franchising is a key pillar to this from Day 1. India as a country has always produced great entrepreneurs who are looking at suitable investment avenues. Franchising, apart from enabling the company scale and penetration, also complement our format with local expertise and support. The model has already proven successful and many of its existing franchisees have scaled up to 3 – 4 stores within the cluster, which is primarily due to higher sales than projections with better ROI.
Highlighting the growth plans, Rajesh Sethuramaman, Heads Marketing for Easybuy, said, “Today our presence is in around 36 towns but the ambition is to have one Easybuy store in every district headquarter and value catchment of India. There are close to 700+ district headquarter in India and even potential small towns are growing and that’s the scale and opportunity available in this segment over next 5 years and beyond.”
Year of establishment: 2014
Year to start franchising: 2014
Total No. of stores: 60
Break up of company-owned + franchise stores: 43 Franchisee Stores, 17 Company Owned
Investment required: Rs. 1 Crore
Area required (in sq Ft.): 5000
Preferred cities &location: Cluster based expansion with focus in TN, Karnataka, Kerala, AP & Telangana, East (Orissa and West Bengal) and North (NCR and UP)
Started in 2004, Orra is India’s preferred destination when it comes to diamond jewellery. Being part of the world’s largest diamond manufacturing company, in a fragmented and competitive market, the brand’s USP lies in rich diamond heritage.
In this regards, the brand conduct an in-depth study of the international markets to map a journey of both diamond consumption as well as brands in this space.
The brand started its retail journey by opening its own stores. However, in order to fuel up the growth the company took the franchising route in 2015. Speaking on franchise expansion, Vijay Jain, Founder Director & CEO,Retail & Digital, said, “ In a vast country like India which has tremendous opportunity we realise that we cannot be everywhere. The frasnchisee model therefore has helped us to gain a stronger presence across various cities. In addition, the franchisee always comes with a greater understanding of different communities as well as a highly connected network in local markets and nuances which works to our advantage. Partnerships therefore work well and have helped us upscale much faster than we could have done just on our own.”
The company is looking to open 8-10 new stores in Tier 1 and Tier 2 cities. Highlighting the growth plans Jain said,” ORRA has built the brand on its own and is now looking to franchise the business as well. Jewellers come with a particular mindset and therefore in our partners we prefer people without a jewellery background. We spend a substantial amount of time, effort and energy in imparting knowledge to our franchise partners.”
Year of establishment: 2004
Year to start franchising : 2015
Total No. of stores: 34
Break up of company-owned + franchise stores: 34 stores – 32 Owned and 2 Franchise
Investment required: approx Rs. 3 crore + bank guarantee of 4 to 5 crores
Area required (in sq ft): 1200 – 1800 sq.ft
Monte Carlo is a renowned fashion brand catered to men, women and tweens. Started in 1972, the current footprint of the brand stands at over 230 exclusive brand outlet (EBO’s) and over 1500 multi-brand outlets (MBO’s) spread across the country.
The unique product offering of the brand includes a healthy mix of jackets, jeans, trousers, shirts,sweatshirts, sweaters, coats, tshirts, tops, cardigans, tracksuits, denims, thermals and much more. The brand USP is Fashion savvy designs made with finest quality materials.
Monte Carlo already has strong foothold in North, Central and East India and enjoys utmost brand loyalty. Going forward, the brand has strong push to grow its franchise network. Speaking on expansion, Rishabh Oswal, Executive Director, Monte Carlo Fashions Ltd shared,” Our aim is to open 72 new retail outlets across the country over the next 5 years. Kerala, Hyderabad, Bangalore, Guwahati among other southern and eastern Indian cities would be the targeted regions for the expansion policy.”
Break up of company-owned + franchise stores: 75% of the total stores are the Franchisee Stores
Investment required: Though it varies from store to store & region to region, it should be somewhere between 20lacs to 75lacs
Area required (in sq ft): Minimum 1000sq ft.
Expected RoI: Rs 5 – 7 crores (per store)
Expected break-even: 02 Years
Preferred cities & location: Pan India with strong focus on domestic market
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