India is Becoming a Tremendous Market for International Franchisors
According to reports by Klynveld Peat Marwick Goerdeler (KPMG) and the Franchise Association of India (FAI), the Indian franchise industry is expected to grow from 13.4 billion to 51 billion dollars in the next four to five years. While expanding, the franchise industry is expected to contribute up to 4 percent of India’s gross domestic product (GDP).
India is becoming a tremendous market for international franchisors. Demand for international brands remains strong in the automotive, food and beverages, retail, education, hospitality, healthcare and fitness industries. Demographic change is booming, leading to an increase in the population of 250 million middle-income Indians with high incomes, changing their lifestyles. The increase in demand for products in India is creating more demand for international franchise.
Young entrepreneurs are understanding that franchising can help them move forward to business success. With the right attitude, a little help from family and friends and enough determination, despite their lack of business experience, they can plug their passion into a franchise model.
Lack of funds and business credibility are two major problems faced by young entrepreneurs when starting their businesses. To begin with they need to find the initial capital which can be done with the help of friends and family. But if young entrepreneurs are setting up a business with a franchise that is already successful in the market then the bank can offer them a loan to start their own startup.
Another challenge comes with the notion that the franchise is being controlled by young people. People begin to believe that the youth have little or no experience and lack of knowledge about the industry. Instead of losing hope, they should take it as a challenge to prove their abilities and prove what they can achieve with their innovative minds.
Not taking young entrepreneurs seriously is another challenge that can be seen in the industry. Another challenge is to hire someone who has children of the same age. The key to overcome such challenges is by showing the knowledge and enthusiasm of the younger generation who are stepping into the industry at an early age.
Finding an external supplier serves as another challenge in the process. Many suppliers refuse to invest or do business with young people thinking that they may experience losses. The reason may be lack of trust and experience. But when a supplier gets ready to work, young entrepreneurs can change their chances, where suppliers can be seen looking for new brains to shape the business in the future.
Promoting through social websites is a common and successful process of grabbing people’s attention. With the help of social media, franchising can also be reported for schools, colleges and universities to create awareness among the younger generation. In this way, more young entrepreneurs can be seen entering the market with a focused goal of making their business successful.