Mumbai: Allied Media, the media arm of the Percept Group has bagged the media duties for Franchise India Holdings Limited (FIHL), Asia’s largest integrated franchise solution company. The account is worth Rs20 crores.
Allied Media will offer Franchise India a 360 degree media service, which would encompass strategic planning, media buying and implementation.
Said Sachin Marya, CEO, Franchise India Holdings Ltd (FIHL), “The franchising market is growing at 30%-35% now. Estimated at Rs 10,000 crore, the franchise industry has about 1,500 home grown franchisers. Around 350 brands from the U.S and 200 from Australia are keen to have their presence through franchisees.
Several other brands from Europe and South-East Asian countries like Malayasia and Singapore are also interested. The companies prefer franchising as it spreads business and risks while giving high-value income.
Moreover, freedom from staffing and operational involvement gives them more chance to invest in research and development.” According to FIHL, India ranks first, ahead of Russia, in terms of emerging market potential in retail and is deemed as a ‘priority-one’ market for international retail.
In India franchising has great potential as the franchisers have minimum risks. Franchising being a relatively nascent concept in India, there has been a lack of information and knowledge.
It would grow at 40% in next few years. “Half the retail boom would be through franchising. It would open up new opportunities for kirana shops. They have the localities and the client base. All they need is to upgrade them,” Marya added.
Said Shripad Kulkarni, COO, Allied Media Integrated Communications Pvt. Ltd, “India is now the world’s second largest franchise market and sectors such as retail, food, information technology and education are set to witness a boom in franchising. As the retail business in India is trying to move from 3% under the organized sector to 5%, it opens up huge opportunities for franchising.’’