Franchising will be a $30bn industry in 2017
Franchising has huge potential in the India market says Samudra Bhattacharya, vice-president franchise, India Region, at Pepsico.
Bhattacharya's projections for 2017 is that the industry will grow to reach about four or five percent of GDP.
"It's expected to grow at an annual rate of 30 percent and beyond," he told delegates at the World Franchise Congress. That equates to $50bn.
An additional 11bn jobs will be created as the sector grows, he said.
A recent KMPG and Franchise Association of India report indicates increasing consumption, eagerness to spend, a preference for branded products, global exposure and the use of international brands is boosting demand.
India's population of more than 250 million middle-income residents brings to the sector aspirational consumers with highly disposable incomes and an appetite for Western goods.
Nominal retail sales are set to rise by 10 percent each year until 2020, according to the US Department of Commerce 2016 ITA Franchising Top Markets Report.
And this report cites the following as the top prospects for franchising:
- beauty and wellness services
Further potential can be found in clothing, travel and tourism, and business and financial services, the report highlights.