Impact of Pandemic on various Franchise Sectors

on Aug 25, 2020 | 2571 views

The unpredictable occurrence of the COVID-19 pandemic brought an immense degree of risks to human lives, not only in terms of health but wealth as well. In the blink of an eye, several industries faced a huge crash while several industries witnessed a huge boom. As much as the occurrence of the pandemic was out of the blue for us, the crash and boom took place in several sectors was unexpected as well. The impact of the pandemic has made various sectors execute adaptation through their versatile technology and thinking, while for some sectors the adaptation couldn’t pay the amount of loss they bear. 

How the COVID-19 impacted Franchise sectors in India?

The pandemic disrupted many franchising sectors but in few sectors, its impact was eye-catching and showed the strategic marketing adaptation. While for a few sectors the impact was growing the loss even more.

The positive impact of COVID-19 on various franchising sectors

 

Retail Franchise:

Due to the strict norms of lockdown in India and widespread of the virus, heading towards grocery was mission impossible. Under such circumstances, the online platform rescued us by delivering groceries to our doorstep. The sudden occurrence of the latest JioMart e-commerce platform grows drastically along with its widespread franchise opportunities. Due to the low registration fees, low-cost investment, and space requirement various vendors, distributors, retailers, Kirana shop owners have acquired the JioMart franchise to earn money with the help of such a promising platform.

Another platform that gained massive profit was e-pharmacy sector, due to the overspread of virus most of the people have become health conscious and prepares to have essential medicine at home, PharmEasy in partnership with several local pharmacies provides the medicines to people and have gained good profit amid the pandemic as well. As per the reports, E-pharmacy platforms stand 3rd largest market in India in terms of measurement and is likely to grow soon as well. Opening an e-pharmacy franchise comes with beneficial reverts amid the lockdown. 

Not all retail stores are coming in the light but Bigbasket is a big success even amid pandemic. Bigbasket is India's fourth-largest sector with 18000+ products and 100+ brands in their catalog, it currently operates in 30+ cities in India and recently acquired DialyNinja firm too. Due to its ambitious planning and strategic marketing tactics, it continues to work even in lockdown. Its retail franchise is a victory for franchise owners as its safe operation continues to exist despite the fear of pandemic.

Commercial Cleaning Franchise: 

It's good to keep oneself sanitized but what about the places we visit daily? Such places where the crowd gathers daily for various operations like Bank, Offices, Building, etc. Keeping such places clean is significant as well but it’s not a one-man job, that is one of the reasons that brought the excessive demand for commercial cleaning services in India amid the pandemic. Various commercial cleaning platforms like JAN-PRO, U-Clean, Icleaners, Stadhawk, OLA car wash, etc. have been productive and availing of the profit as well. Such platforms have a well trained and skill proof task force with high-quality equipment to vanish harmful bacterias via their cleaning and sanitization methods. 

Food Delivery Franchise: 

Not all food franchises boom in a pandemic but few have it all to battle and stick to their adaptation techniques or create opportunities for several job-less people. 

We can’t forget those Zomato or swiggy’s delivery men who killed our hunger with their hot and lip-smacking food, can we? 

Even when the lockdown was imposed such platforms were open to deliver food to our door stops, the franchise business of such platforms too carried away with complete consistency. Amid such a continuation of various food franchise platforms, their franchise outlets are increasing due to reliability and a good brand image. 

Where a few franchises continue to rise, below are few which face loss and are still battling to survive amid the global pandemic.

Another rising example of food delivery franchise opportunity is the recent launch of Amazon Food Delivery brought enormous hope for those who were jobless and for those who were looking for the best franchise to invest their time and efforts in. Amazon Food Delivery Franchise was launched in Bengaluru amid the lockdown and the operation currently takes place in selected in code, but the franchising opportunities are likely to expand soon. The people residing in such selected pin codes can order food online and from the nearby restaurants which have partnered with Amazon would deliver the hot luscious cuisine at the doorstep. 

 

The negative impact of COVID-19 on various franchising sectors

 

Automobile Franchise:

COVID-19, Lockdown, and India china cold war has badly impacted Automobile franchise sectors. Due to the pandemic manufacturing operation was put to stop, Factories were closed and product sales too went down as people were more concerned about health and safety rather than buying  Mobiles and cars. In 45 days of lockdown Automobile sectors faced 1 lakh crore of loss, there might be a decline in Automobile sectors by 20-30% in 2020 too. The Automotive Component Manufacturers Association,  Mahindra and Mahindra Franchises have faced an immense amount of loss due to the pandemic. Due to the ban on Chinese products and apps brands like Oppo, Vivo, Redmi have been facing huge losses as well where people are more concerned about buying Indian made products to prompt Aatma Nirbhar policy all over the country.  

MSME franchise:

Medium, Small and Medium Franchises which have had their worst breakdown due to pandemic. As most of the franchisors were unable to provide financial assistance to such franchisee owners they have undergone a huge loss. As per the Economic Times report: One-third MSME’s start shutting shops as recovery amid lockdown looks impossible. Around 35-37% of MSMEs have been shutting down in India due to the major loss. It can include small enterprises, initial start-up franchise, small retail franchise, etc. 

Hospitality Franchise:

Platforms like Oyo and trivago have faced loss too, due to lockdown tourism and hospitality business have been shut down by the government to stop overspreading of the virus, franchisees of such platforms were too hit by a reduction in profit. Due to the drastic fall on profit, Oyo may temporarily lay off its additional staff to recover the minimum loss. 

Shares of trivago too fell amid the pandemic and loss continues to increase, as hotels are closed the trivago franchise has been deprived of benefits too.  

As per the report of the Indian Express hotel industry may bear the loss of 90,000 crores in the year 2020. 

Amid the pandemic, technology has been the backbone of most of the sectors to upgrade it in a versatile way, but few failed due to the unfavourable circumstances.

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