Financial Daily from THE HINDU group of publications
Saturday, Mar 15, 2003
Financial Daily from THE HINDU group of publications Saturday, Mar 15, 2003 |
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Marketing
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Channels and Franchises `Brands need to franchise if they want to grow' Our Bureau
NEW DELHI, March 14 BRANDS today need to franchise if they want to grow." This was the main message from at the `World of Franchising 2003' seminar held in the Capital on Friday. "Franchising gives quick market penetration. Local expertise and market knowledge help to understand the culture and buying behaviour. With a proven business format, franchising indicates a success rate of 90-95 per cent. The Indian franchising industry is expected to grow by 40 per cent by 2005," Mr C.Y. Pal, Chairman, Cadbury India Ltd & President, Franchising Association of India, said, while addressing the seminar. Currently in India, franchising commands a turnover of about Rs 8,000 - Rs 10,000 crore and directly employs three lakh people. "Today the maximum percentage of Indian franchising is in healthcare/beauty sector (40 per cent) followed by IT-enabled services (14 per cent) then by business services (11 per cent). Some of the recent innovations in franchising have been co-branding and using the Intranet to keep franchise owners plugged in," added Mr Pal. Meanwhile, speaking about the impact of franchising on the service sector, Mr Ratan Jalan, CEO, Apollo Health & Lifestyle Ltd, said, "The service sector in India, like many other developed economies, is bound to witness unprecedented growth. Apollo plans to start 250 clinics catering to the basic healthcare needs of a typical family across the top 100 cities in India over the next three years through the franchise route." Legal experts such as Nishith Desai Associates emphasised that given the high rate of growth in Indian franchising, there was a need for a regulatory and legal framework.
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