Over the years, the Franchise Market is fueling rapid growth and has subsequently witnessed a growth rate of around 30 to 35% with an overall turnover estimated at INR 938 billion. These numbers assert an inclination towards India’s franchising chains, which are optimizing their position for the long run. According to the Indian GDP, the franchise sector contributes nearly 1.8% currently, and soon, it is expected to contribute around 4%. With these increasing statistics, the franchise sector will outpace the Indian economy and create opportunities for the developing nation.
So, let’s explore the franchising trends that are emerging in 2021:
- COVID-19 opens New Doors of Opportunities
As the world continues to be imprisoned by the coronavirus, the upcoming opportunities in today’s underlying situation have created new business ideas. As the demands of the customers change, the business owners have remodeled their concepts of functioning and operating to provide customers with ideal services. This franchise sector is shifting its focus with the changing demographics and is looking forward to investing in crowd-sourced kitchens, sanitization supplies, print-on-demand mask business, and more such options according to the need of the hour. Franchisees are investing in low capital businesses and leveraging themselves for a stronger yield in return.
- Expanding with the Virtual Space
As the entire world has become digital, the majority of meetings and conferences are conducted online on Zoom calls and Google Meet. These interactive platforms offer effective illustrations, increased productivity and efficiency, information sharing while saving time and money compared to physical meetings. Hence, adhering to all the positives, the franchise sector has engaged with these hi-tech assets further linking to cyberspace.
- The Growth Dynamics
A franchise network’s success is collectively based on many factors, but above all, it’s the leading professionals making those crucial decisions to synthesize the best outcomes. As the unemployment rate fluctuates constantly due to the crisis, it is tough for experienced staff to manage the overall business and keep their positions intact. The trend states that multi-unit franchises are acquiring new businesses and are hiring a young talent base to escalate their market value for the long term.
- Small switches to Micro
Have you ever heard the rags to riches story, well if you have then you know that with patience and determination one can unfold many successes? As we all know, 50% of startups fail in the first five years and hence one has to be cautious during selecting and starting a business. Hence, the trend states that now startups are not looking for small ideas instead they are starting with micro ideas, which have lower risks to fail and greater chances of success. Hence, the micro SaaS platforms are intriguing the franchisors and making them invest in the same. They are looking for long-term outcomes and focusing on nurturing the franchises with the required tools and resources.
- Marketing Techniques to convert Leads into Sales
Selling products or services is never easy and one has to constantly work through new concepts to grab the customer’s attention. With the various social media platforms, short yet appealing content should fill the void and the customers should click the call-to-action button without any doubts. Hence, displaying your product in the first 3 seconds of your ad or video will make you more sales than putting in after 3 seconds. So, such types of techniques of marketing, creative sales funnels, info graphical text, or indirect narrative drive the sales margin, and hence marketing techniques play an important role for brands to build their reputation and growth scale.
These are a few of the trends on the move keeping into consideration the COVID-19 fallout; these are the ones that need to be incorporated by franchise businesses to strive for better results.