BUSINESS OPPORTUNITY OF RETAIL FRANCHISING IN INDIA

Abstract

Retailing in India is one of the pillars of its economy. The Indian retail market is among the largest and the fastest growing sectors in the world. India has occupied a remarkable position in global retail rankings. The country has high market potential, low economic risk, and modest political risk. The organized retail segment in India is estimated to be worth $24 billion, only 2.5% of total retail sales are driven through franchise formats compared with nearly 50% in the US, representing significant potential. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the consumer market. The Indian retail Industry which comprises organised and unorganised retail is presently estimated at US$ 490 billion. It has experienced high expansion with a noticeable shift towards organised retailing formats. With bulk of the brands taking the franchise route, the growth forecast in retailing has grown even better. This paper provides a study on franchising business, growth prospectus and factor affecting the franchising business.