Organised By Ferro Milano

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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
Franchising gtgtgtin India
Organised ByFerro Milano Duration 15
Minutes PresenterGaurav Marya, President,
Franchise India Holdings Limited
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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006

• Indian Marketplace An Overview
• Franchising in India
• International Successes
• International Failures
• Japanese Vs Korean Strategy A case study
• Objective Approach
• Be firm Be flexible
• Global Expertise Local Opportunities
• Introduction to FIHL

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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
India Worlds Second Fastest Growing
Economy For last two years consecutively Indias
GDP growth has been over 8 GDP growth.
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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
Some Quick Facts On Franchise And Retail 1800
Home Grown Franchisors and over 70,000
franchisees 85 Success rate Over USD 4 Billion
industry Highest retail outlet density in the
World Service sector contributes to nearly
51 Over 600 shopping malls and commercial real
estate are expected by march 2005 55 million
Sq.ft. retail space under development, expected
to be up by 2005.
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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
Franchise Successes in India
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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
Franchise Failures in India
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Japanese Vs Korean Strategy
Hallmark Global Leader Inception
1910 Units4,750, In India 220 franchisees Market
Share less then 20
Archies Home grown Franchisor Inception
1979 Units 440 franchisees Market Share over
50

• The greeting card industry in India is estimated
  at USD 0.5 bn
• 50 in the organized sector
• Archies has exploited the opportunity well with
  Indian traditional festivals such as Holi, Rakhi,
  etc besides the usual Birthday, Anniversary, New
  Year, Valentine's Day cards etc.

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The Objective Approach
Consider it as a long term high volume market A
three level Approach 1. Feasibility study
Market Research. Evaluate the size of the
opportunity Customize Product/ Services
Pricing Review competition 2. Strategic Planning
for India Entry Invest in business Licensing
IP - System and expertise preferred over
Brand Joint Venture - Direct equity
participation Master/ regional franchise -
Customized franchise format 3. Locating Right
Partner Built Investor Confidence - Investment
not the only criteria
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Be firm Be flexible

• Local Marketplace
• Local socio economic condition
• Culture, Religion and Language
• Consumer behavior
• Competition / Strategy
• Legal system
• Penetration

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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
Preferred Formats Master/ regional
franchiseMore partners per country Licensing
IPBrand less valued, System and expertise
transfers Joint VentureDirect equity
participation
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Gateway to India The Opportunity
Global Expertise Local Opportunities (many
countries within a country)
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Franchising in India
Franchising Trade, Milan, Italy 20th October
2006
Franchise India Holdings Limited Asias Largest
Integrated Franchise Solution Company Since 1999
The Franchising World Retailer Publication
Division Indias first and highest selling
franchise magazine FranchiseGuru Franchise
India Property Service Business Brokerage
division with 60 offices across country and
overseas Franchise India Consulting Consulting
and Knowledge division www.franchiseindia.com -
Asias 1 Franchise website Franchise India
Events Services - Franchise India 2006 - 4th
International Franchise and Licensing Expo
Conference - Franchise Awards06 - 4th Awards
for Franchising Licensing and Business
Development - Franchise Retail
Opportunities2006 Mumbai, Bangalore Kolkata
Three Major Metros - Star Retailer Retail
Awards - Franchise India Investors Meets in 18
cities FB Division - Club City (Dosa Plaza,
Shanghai Post, Tikka Express, Masala Country,
Barnies, Taco maker, Saint Cinnamon)
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Welcome to India
the opportunity awaits
Thank You
Presenter Gaurav Marya, President, Franchise
India Holdings LtdD-14. Pamposh Enclave,Greater
Kailash Part 1 New Delhi 48, IndiaMobile 91
980984433mgaurav_at_franchiseindia.comwww.franchise
india.com