Franchising business which was a boom in the last decade is now moving into a different dimension, A change in the market trend with the new normal and lot of changes that have happened with work from home options, people losing jobs left right and centre. With company’s wanting to cut the size of the office and giving large scale physical options to remote work culture and people moving back to their hometowns during pandemic has made many businesses to re-think the model and the opportunity.
Now since people have moved back to hometowns and since many do not get their desired brands some of them opt for starting new business in B and C towns. Things might take time to return to normal until the vaccine is ready to be used. However, the sale of 2 wheelers and bicycles have gone up for commuting and for exercise. Things have moved from big spends to small spends.
However, business needs to move on, and life must become normal in the course of time. With the new medical policies of the government to push the need for Ayush based clinics and medicines. I stongly believe Kerala will have great push toward Ayurveda and many companies are venturing into its medical stores and other allied services.
A change in the education system is expected and now since people have started looking at on-line education, many companies have moved from campus education to online education, on demand and any time studies is the new normal, and this will disrupt the education industry. A good example is Byju’s and seeing them many other brands have floated their services, Veranda Learning Solution, CK (Cloud Kampus) by CADD Centre, Teacher online, iLearnU and many other companies will be franchised, and many computer centres will become study centres or will become delivery or point of sale centres in the future, hence the Edu -Tech opportunities will become in the future.
During this pandemic, many retail companies have shut down their non-performing stores and relocated them to a place of doing good business and many of them have resized the store size. In my opinion the future will have fulfilment centres or the last mile delivery points to help reach more customers in the days to come.
Many grocery stores and convenient stores have mushroomed looking at the trend for this pandemic many of them have started local stores and many opportunities will spring up in the days to come. Looking for investment to look for good brands and building a local business is a paramount in the future for a turnaround for the economy. There will be a great turn around and be ready for the right space to invest with the right investment in the right brand and company. Kerala has a great opportunity to build great brands.
Business that you can investment after checking all the credentials of the company and the products and services will be as follows.
Health Care: With the current condition this industry will thrive once the pandemic. Franchising will be the vehicle to push products and services, many medical store brands will be up, and many are looking to invest into poly clinics, fertility centres, animal clinics and so on so forth.
Beauty: The human touch-based business was thriving but unfortunately like any other business this too was hit, but once the pandemic is over people will get back to normal act and this industry will be one to watch out. There are several brands in the market now like Natural, Green Trends, Tony & Guy, Affinity, Looks, Blossom Kochhar, Dessange, Enrich Saloon, Camille Albane Paris these are excellent brands that are ready to take the market in to their hands once the market opens. A business that yields good profits.
Mental Health Services: This is a new area that will open with many mental health care centres, like Psychiatric, Psychological, and mental wellness service centres that will open with people using many AI tools in helping clients.
Retail & Fashion: Retail which was hit will come back strongly with so many local brands that will shine and there will be good movement in this space.
Sports Clubs & Equipment: Like the IPL, ICL or other clubs there will be smaller clubs that will come up in all the smaller towns and sale of equipment will be another opportunity for investors.
Automobile: This sector will have new brands from different companies to hit the market and there will be a boom soon of invest. E-Vehicles of different variant like Autos, small truck, and large vehicles. There will be opportunities for electric charging points which is expected to hit the market.
Pet Clinics: The new entrant in the franchising space is this new area. Where some of them who are quite passionate with animals and pet can look at this space which is a very niche area and there are opportunities for this too.
Cleaning Services: This is another space with lot of cleaning happening and many small companies with short age of migrant workers now this area will become a very lucrative busines model for cleaning tanks, homes, offices etc.
Travel & Tourism: This industry has been hit now but once the pandemic gets over this will be a good area to look in to and you will find a good taker as people have been waiting to get away for short tips and self-drive and new locations and safer locations will be an attraction.
Restaurants: This industry has taken a hit with the pandemic, however innovation with the delivery apps has changed the dynamics of this industry. Dark kitchen or Cloud kitchen has been the new trend with one kitchen which delivers for different brands and many of them are already using this service to provide newer avenues for growth in this industry. Many small format hotels with less no of seating will the future and many locations will act as delivery fulfilment locations.
Mobile Based Marketing: With the invent of AI, phyton and machine language there has been a great movement in this field. A company from Singapore called “SWIPELAH” is launching its Mobile advertising in the Digital space with great benefits to the consumer as well as the shopkeeper and this is a great innovation and it will be a great opportunity for investors to take up this franchise operations and this is highly a beneficial one for all the 3 consumers, shopkeeper, and the franchisee. Great concepts good money if franchisees work hard there is huge money to be made as the company is looking to help the franchisee to benefit from this relationship to penetrate the market with less investment and good returns.
Agricultural Equipment and Related Services: With the new development of services and requirement from farm reforms, there is a huge need for this sector growth and needs lot of investment in this area and many companies will be looking forward to developing more franchise network for distribution network in this sector.
Supermarkets & Convenience Stores: investments in this area will propel this market and you will find new stores springing up in small towns and this could be an area of investments.
Logistics: A great push in the infrastructure development will propel from demand for this sector. With more logistic companies eyeing to franchise their services and operation.
Cosmetics: Kerala based Cozmedics is opening its multi branded cometic franchised stores in small and big town in different malls and is willing to give franchisees in different formats soon and this will be a good opportunity for many women entrepreneurs to invest and look of good returns.
Gold & Dimond: This sector will see growth with small formats opening for different tire 2 and tire 3 locations in the future and many local brands will come up and this is another area of investment opportunity. All the big companies will be looking of people to invest in this field.
There will be may other sectors that will open and many of them who have returned from gulf companies will be able to start a franchise business. However, be incredibly careful to check the credentials and the proof of the concept and success of their existing stores before you sign up. Please think twice before you invest. There are many you will promise many services but be clear what you are getting in to.
The author of this article Dr.Chackochen holds a PhD in franchise management and has 3 decades of experience in the field of franchising. He has helped more that 850 entrepreneurs through the franchising route, he can be contacted at 9884051455 or visit www.franchisingrightway.com or appointments.