Venture into the Booming Fashion Franchise Business
Clothing is one of the basic necessities of life and is needed by one and all. Everyone spends money and time choosing clothes based on their capacities and preferences. Some may spend millions a year on fashion apparel while others might live in a handful of outfits. Clothing is very personal and there are no set rules to define people’s preferences or styles. Even so, the fashion industry is one of the most consistently growing industries in the world. In India, the fashion industry contributes to about 8 percent of the total Indian retail industry. The Indian retail industry is expected to grow to 865 billion US Dollars by the year 2023. This makes the fashion retail industry a highly lucrative franchise option. There are many factors that have contributed to the rise of the fashion industry in India. The young generation today is constantly on the internet and is aware of global lifestyle and fashion trends, they follow global fashion icons and they, in general, have a higher disposable income available, which enables them to spend more money on their purchases.
Here are some pointers for you if you are considering investing in a fashion retail franchise. 1. Know Your Customer Before you invest in any business, it is imperative that you understand your customers and their requirements well. Only when you know this can you plan for success. A big chunk of the Indian population is under the age of 35. This segment of the population also broadly referred to as millennials, are very different in their tastes, preferences, and influences as compared to their ancestors or parents. You need to understand the customers in the area where you are planning on opening your franchise outlet. The demographics of the region, the average age of the population, their income levels, etc. When you have this information, you will be much better prepared to make the decision of choosing a brand that resonates with the people of the area. 2. Weather Weather in India varies from north to south and east to west. Keeping the weather in mind is crucial, especially while offering apparel choices. For example, if you are looking to open your franchise storein a city like New Delhi, you need a brand that can provide both winter and summer wear, on the other hand, if you are looking at a city in the southern part of India, you may not want to invest in the franchise of a fashion brand that specializes in warm jackets or heavy layers as the southern part of India is predominantly hot. Hence, choose a brand that can create weather appropriate clothes for the region you will operate in. 3. Customer Segments Based on Styles Like we discussed earlier, fashion styles or choices are highly personal, however, there are some broadly defined genres, which could help you in sorting out your customer segments. Fashion is a creative industry and hence, its products aren’t sold on price or quality alone. Art or aesthetic is a major driver behind fashion sales.
You need to conduct extensive research in order to identify the dominant sartorial choices or preferences of the customers in your desired region. Some popular genres, which you could start with for your research are bohemian, Indian, regional, chic, grunge, athleisure and formal. Most people might actually buy items from more than one genre. For example, a working professional would need formal wear for work but could also be interested in bohemian clothing for vacations or in athleisure for exercising. Understanding the prominence of these genres is one of the first things you will have to master in order to provide your customers with what they want. Fortunately, many parent companies whose brand you would franchise with, provide support through research and can offer guidance for the same. 4. Brand Value and Image The other side of the story is assessing what the brand means to the customers. Customers today are highly brand conscious. Young children know which brands they want and which they don’t. This is the power of advertising and the media. So it is very important for you to know that any brand you choose has a loyal customer base. As a franchise partner, you may not have much influence on the creative decisions taken by the brand on their products, hence, you need to choose wisely and choose a brand, which already has a positive value and which has an image that you can promote and gain success. It would be even better if you could choose a brand whose image resonates with your own ideas or preferences. When you are convinced of the products your franchise is showcasing, you will be able to sell them better.
5. Sourcing Most fashion brands in India source at least part of their products from India. Sourcing from India helps you in having more control over the supply chain, it reduces the time and cost of logistics. Plus the government incentivizes franchises and brands, which rely on local sourcing, whether solely or partly. Many in the young population today are very knowledgeable of the country’s economic condition and want to buy locally sourced products. This helps them in contributing to the economy. Hence, local sourcing also adds to the brand value and image.
6. Environmental and Social Causes Since fashion is a part of everyone’s life, everyone has an opinion on it. Today, there is a huge segment of the educated customer base, which only wants to use organic products, which are good for the environment and for their own health and lives. People also want to purchase products, which are made through fair practices. There are various fair trade and practice committees and certifications all over the world. These certifications or accreditations help protect the interest of the staff or labor working in labor-intensive industries like apparel manufacturing, where a lot of products could be handmade. 7. Know Your Competition The fashion industry has tough competition. In order to survive, even as a franchise, you will have to be fully aware of other brands’ and their franchises’ marketing plans, collections, product lines and any changes in their pricing models or sales or aesthetic sensibilities. 8. Constant Evolution Finally, investing in a fashion franchise means that you need to be prepared to evolve constantly as fashion is constantly evolving. You might have to change the decor and display of your store regularly. The products will change every few months. The entire brand might keep evolving and changing and so you too will have to be ready to observe, learn and grow. The Indian fashion market is currently in the growth stage with the young Indians finding themselves and being comfortable with experimenting with different styles. This is a great time to invest in a fashion franchise opportunity. Carefully done, it can prove to be a huge success and before long you would be opening multiple franchises.