While every piece of media, news published or broadcast these days, whether directly or between the lines, is pointing towards the story of Indian Business growth, what do you see? Do you feel people around you increasingly preoccupied on their laptops or typing text messages on their cell? What about seeing a youngster walking on the street with an ipod earplug? How about the packed eating joints during the day? Isn’t it more than ever before? Don’t you feel the dressing styles are becoming increasingly western these days?
The more the better! The desire to have more and better goods in the rapidly emerging mantra of New India and consumerism has become a key component of the Indian growth story.
Consumer businesses driven by entrepreneurial innovation:
Entrepreneurs are more suited for enabling Consumer Businesses as they are more responsive to consumer needs and changes in demand and are better positioned to address these changes rapidly in their small business . Large organizations typically would only like to enter this domain as an add on to their product e.g. a detergent company getting into launderette . By definition innovation involves finding a new solution to an old problem and today such business ideas, which are making consumers lives better are far uncertain in their market performance, particularly in retail and consumer services sector in India and less risky propositions in terms of Startup Business idea as the overall supports from Supplier, Banks , Business Investors, Groups & above all end created a new dimension of uncertainty.
Consumer business & scale – need for financial resources:
India’s Small & medium entrepreneurs are increasingly focusing on consumer businesses & want to capitalize on being the first providers of relevant goods or services to the audience. SMEs in India are acting on the positive economic outlook with increased capital investment. As per a survey done by Asia Times on India SMEs 58% expect faster economic growth locally, and 38% expect local economic growth to maintain the same peace. What’s more! Exporters of consumer goods too feel they are walking on thin ice with increase in competition & recessionary trends in developed markets & are in search of local markets. Being able to gain access to capital is essential for such entrepreneurial ventures in Consumer Businesses to fulfill its real potential . While banks and funding companies can provide venture capital and other financing options, governments can also adjust their taxation & regulatory policies to support entrepreneurial talent. This will raise the potential of entrepreneurs to localize their consumer’s business by implementing their innovations.
For a finically feasible plan, within a reasonable time window, capital is the answer for an expansion plan but it is rarely easy to come by . By strategy, consumer’s businesses are based upon the fundamental of incremental innovation and that is where franchising fits in. Consumer Businesses grow sharply by trading with local partners or franchisees. A win-win for both parties this activity can help to establish the brand and financial stability for the franchisor while creating a culturally responsive opportunity for the franchise in his market . A flatter management structure in a franchise format facilitates dialogue between franchisees and franchisors and that is how great global organizations like McDonald’s & Subway have taken shape. Time is right for existing entrepreneurs . For midsized business already existing in consumer business space, it is a critical phase in their business cycle where they maybe experiencing growth or change to gear up and to take advantage of new opportunities & markets & derive benefits from the Brand Equity they have created in a market (s). For east penetration, Franchising could be the ideal approach to accommodate that growth and expansion.
If your Business Agenda includes any of the following, then your presence at India’s biggest business & trade show Franchise India 2010 is a must mark in your calendar.
1) starting a small or medium business
2) Exploring Franchise strategy for your current business growth
3) Networking with banks or PE or VC companies for business funding
4) Investing in Master Franchise or taking your brand in overseas markets.
5) Comparing your innovation Business idea with similar brands in the market.
6) Choosing Strategic Locations for your retail outfit pan India.