By Venus Barak, CEO, Franglobal
The retail industry in India is active and diverse, with a mix of modern innovation and traditional norms. As a key driver of the economy, it contributes over 10% to the GDP and employs a workforce of around 8%, according to IBEF. While traditional stores and bustling markets have long dominated the industry, the recent rise of startup culture has altered the retail scene, resulting in extraordinary expansion. According to the Ministry of Commerce and Industry, India had 117,254 DPIIT-recognised startups in 2023.
The rapid growth of the Indian startup ecosystem played a significant role in this transition. Startups, inspired by a young and tech-savvy population, have refreshed the retail industry. They developed new business models and adapted to the changing needs of Indian customers. However, the startup journey is not without obstacles. It includes hurdles such as creating a robust brand, attracting loyal customers, and managing complex supply chains. Thus, managing complex rules, accommodating local tastes, and ensuring efficient logistics across a large area requires a multidimensional approach. In this context, retail franchising, one of the oldest franchise model, emerges as a potent tool, mitigating risk and propelling growth.
Retail franchising: An understanding
Franchising allows acclaimed brands to benefit from franchisees entrepreneurial energy and local experience. It offers new owners an established firm plan, operational knowledge, and brand awareness, reducing the early barriers that startup owners confront. This approach is particularly beneficial for medium and large organisations that do not have the bandwidth to manage stores effectively in T-II and III cities.
However, startups still have a lot of obstacles to overcome, such as assuring quality control and preserving brand consistency across markets. This is where technology came to the fore, offering tools for remote monitoring, standardised procedures, and real-time data analytics to guarantee consistency and effectiveness among all franchise sites. In addition, franchisees can maintain brand standards and provide consistent client experiences with the help of continuous training and support programmes.
New-age technologies: Transforming the retail franchise market
Power of data analytics: In today’s information-driven era, data analytics become a significant technology. It empowers franchise firms to gain deep customer insights, understand purchasing habits, and identify local market trends. Enterprises can tailor marketing campaigns to meet specific customer requirements through the analysis of sales data from different franchise outlets. This data-driven approach also allows for dynamic pricing adjustments based on competitor activity and fluctuations in local demand, maximising the success of the franchise company.
Streamline the supply chain: For every retail firm to succeed, a robust supply chain is essential. Surprisingly, technology provides ways to streamline these activities, resulting in significant cost savings and increased productivity. In this scenario, advancements like cloud computing and blockchain emerged as game changers. On the one hand, cloud-based systems offer real-time inventory visibility across franchises, allowing for automatic purchase orders and optimal stock levels. In contrast, blockchain improves transparency and brand confidence, leading to a more efficient and cost-effective supply chain.
Integration of omnichannel: The growth of omnichannel platforms made it necessary to offer a seamless
experience across online and offline channels. In this regard, technology such as AI, AR, and VR appeared as a critical weapon in bridging this gap. From convenient inventory systems to personalised recommendations and immersive experiences, these technologies have transformed the shopping experience while driving business revenue. For instance, AI-powered chatbots provide rapid customer support, AR technology allows for virtual product trials, and VR technology offers interactive shopping experiences from home. Thus, for businesses, these technologies translate to happier customers, increased sales, and a competitive edge in the dynamic Indian retail landscape.
Future outlook!
In the field of retail franchising, where smiles are valued more than sales, modern technology is the magic
ingredient that elevates routine encounters to remarkable ones. It is the key that opens the door to a world
where each client feels important, each exchange is intimate, and each visit is like returning home. In a
nutshell, Indian retail franchises can not only survive but also flourish in a competitive market by
leveraging the potential of these technologies, shaping the direction of retail in the fastest-growing
economy in the world.
