Written By: Resham Daswani

Are you ready to become a part of India’s biggest and fastest turnover industry? Yes we are discussing about India’s High Street Retail Franchise business.  So without a pause, let us dive deep into this very interesting and highly profitable segment. 

An Overview Of How It All Started - The Hustle Bustle Of High Street Retailing Business in India

The high street retail franchise model is leading India's retail change. High streets are attractive retail locations due to urbanisation, consumer expenditure, and brand-conscious shoppers. This offers investors a lucrative chance to invest in India's fastest-growing sector.

This content will explain why high street retail franchises are a good investment, their development potential, and how to succeed with one.  First let us have a glimpse of how it all started.

High Street Retail Franchise - Its Existence in India

Retail on India's main thoroughfares has a rich and varied history that begins with the ancient and medieval bazaars and markets. But, because of urbanisation, economic expansion, and shifting consumer behaviors, the contemporary idea of high street retail—where retailers line prominent metropolitan streets offering branded goods—has only just arisen.

Bazaars and weekly markets (haats) were vital to historic trade and commerce, which inspired India's retail legacy. Spice, textile, and handicraft vendors gathered in these marketplaces on important streets or near temples.

Certain urban regions developed more structured marketplaces under British colonial administration. European-style shopping areas were built in Mumbai, Kolkata, and Delhi. Although small businesses and local marketplaces dominated retail, it was unorganised.

During the post independence development phase i.e. 1950-80s, Family-owned shops dominated main streets during this unorganised retail period. Organised retail, when brands open standardised shopfronts in prominent places, was new. However, Raymond and Bata, renowned Indian companies, opened high-street stores, setting the stage for future growth.

The conversion to more organized retail stores took place in 1990s, followed by a boom in 2000s, leading to the growth of the modern high street retail business.

Some major high street retail franchises in India, can be located in cities of:

• Delhi: The Connaught Place, where In this historic building, you'll find a mix of high-end labels, international merchants, and mom-and-pop stores.
• Mumbai’s Colaba Causeway: attracts both locals and tourists with its well-known street shopping and upscale stores.
• The Brigade Road of Bangalore: is one of the best places to buy name-brand clothing and gadgets.
• Kolkata’s The Park Street: Cafes, restaurants, and upscale boutiques coexist alongside more conventional forms of retail.

In a nutshell, Indian high street shopping began as a bazaar approach and grew into a more organised one. High-street retail in India thrives today, evolving to new trends and spreading beyond big metropolitan areas into smaller cities to remain a significant part of the retail scene.

Potential Benefits of Investing in India’s High Street Retail Franchise Segment

1. Advantage of a prime location: Locals and tourists frequent high streets in city centres. These places are accessible and visible, which are essential for retail success. High street retailers profit from being in busy, high-traffic areas where customers are ready to spend, unlike shopping malls or freestanding establishments.
2. Vibrant Consumerism in India: Retail growth is driven by India's growing middle class, discretionary incomes, and brand preference. High-street franchises suit consumers' needs for convenience, quality, and diversity. High streets showcase luxury and mid-range brands for a diverse audience.
3. Strong Branding: A well-known brand is a major benefit of high street retail franchises. National and multinational brands with devoted customers are commonly seen on high streets. Franchisees profit from a marketing plan, customer confidence, and operational support.

Growth Potential In High Street Retail Franchise Businesses

#1. Tier 2/3 City Development and Growth

Metros like Mumbai, Delhi, and Bangalore remain high street retail hubs, but Tier 2 and Tier 3 cities are growing. Premium retail experiences are in demand in these locations due to urbanisation and infrastructure improvements. High street retail franchises have an untapped market.

High-street retail franchises in emerging cities can change the game. Higher street retail demand will rise as more people in smaller cities discover global and national brands. These markets have less competition and more customers for early franchisees.

#2. Transition to Omni-channel Selling

E-commerce is growing in India, but high-street retail still needs brick-and-mortar businesses. Many high-street retailers are omni-channel, merging online and offline platforms. Whether customers choose to shop online and pick up in-store or vice versa, this makes the shopping experience easy.

By investing in a high street retail franchise, you join this omni-channel strategy that boosts customer engagement and profitability. By combining online and offline retailing, you can ensure that your investment is future-proof in a world that is becoming increasingly digital.

Risks Associated With High Street Retail Franchising in India

1. The exorbitant expense of renting shopfronts in highly visible, high-traffic areas is one of the biggest obstacles. Retailers need big sales volumes to stay profitable due to higher overheads.
2. National and independent retailers crowd high streets. To distinguish oneself in a market that is highly competitive, it is imperative to implement effective marketing strategies.
3. High street merchants are exposed to economic downturns. Recessions reduce consumer expenditure, especially on non-essentials.
4. Retailers must comply with stringent zoning, health, and safety, and licensing standards. Maintaining compliance takes effort and money.
5. High street stores need to invest in digital platforms and technologies to improve the consumer experience and simplify operations as technology becomes an increasingly integral part of retail. This might be difficult for small enterprises with minimal resources.

In short, many doors will open for retailers on the high street, but there will also be many obstacles that they must overcome. Anyone interested in investing in or operating a high street retail franchise must comprehend these dynamics.

Retailers can establish themselves as successful entities in this competitive and dynamic marketplace by capitalising on the opportunities and confronting the obstacles.

Key Segments To Invest in India’s High Street Retail Franchise

1. Grocery and Food: This sector encompasses local kirana shops, convenience stores, hypermarkets, and supermarkets. It occupies a substantial portion of the Indian retail market, which is influenced by evolving consumer preferences and urbanisation.

2. Clothes, Shoes, and Accessories: The fashion retail sector is one of the fastest-growing industries. Especially among the younger generation, there has been a noticeable uptick in the desire for trendy-branded clothing among Indian shoppers.

3. Consumer Electronics: This sector encompasses the retailing of a variety of electronic products, such as mobile phones, laptops, and household appliances. This segment has also been impacted by the proliferation of e-commerce, as consumers frequently compare prices online before making a purchase.

4. Home & Living: With more discretionary spending and a larger middle class looking to upgrade their living spaces, home-related product retail is booming. This consists of a variety of items such as furniture, decor, and crockery.

5. Personal and Beauty Care: This sector includes hygiene products, hair care, skin care, and cosmetics. One factor fuelling this market's expansion is the growing desire for organic and all-natural goods.

6. Health and Wellness: This segment is experiencing growth due to the growing awareness of health among consumers. There is potential for expansion for stores that sell organic food, nutritional supplements, exercise gear, and wellness products.

7. Premium and Luxury Products: The urban centres' affluent class and expanding middle class are driving the increasing demand for luxury products. Metropolitan regions are experiencing an increase in the number of premium retail outlets and high-end brands.

8. Ecommerce: Although it is not a conventional high street segment, ecommerce is a critical component of the greater retail environment. Numerous retailers require the integration of online purchasing with brick-and-mortar stores.

Key Players With Growth Potential in High Street Retail Franchising

1. Reliance Trends Franchise:

Belonging to the segment of Apparel & Fashion, this Reliance Retail brand has swiftly developed across India, bringing affordable clothes to a wide audience. They are a fashion destination because of their high street presence.

Reliance Trends is mostly corporate-owned but wants to develop through partnerships and high-street retail.

2. Bata India Franchise

Following in the category of footwear, Bata, one of India's earliest and most reliable footwear brands, is a major presence on city streets. With its extensive selection of footwear, the company targets mass and luxury markets.

Moreover, Bata offers partners an established business with a significant client base through company-owned and franchised high-street locations.

3. Raymond India Franchise

Leading brand for textiles and fashion, Raymond's suiting materials and ready-to-wear have been popular in India's high streets for decades. Raymond's franchisees profit from the brand's popularity and solid consumer base.

4. Tanishq Franchise

Leading jewellery brand Tanishk, a Tata Group company with outlets on Indian main streets, is among the fastest expanding in the jewellery industry.. Tanishq is an established brand in the Indian jewellery industry, revered for its exquisite gold and diamond pieces.

Tanishq offers franchises in some locations, but mostly operates company-owned stores.

5. Miniso Franchise

Dealing in lifestyle and variety retailing, Miniso is a lifestyle retailer that is widely recognised for its affordable offerings, which include homeware and electronics. The brand is inspired by Japan. Typically, its stores are situated on heavily trafficked main streets.

Miniso provides franchising opportunities in India, with a particular emphasis on high-street retail locations in urban areas.

In conclusion,

Strong growth potential, changing consumer preferences, and technology integration make India's high street retail franchise industry intriguing. Success in this fast-paced industry will go to franchisors and franchisees who can ride out these changes while prioritising customer service, environmental responsibility, and new ideas.

High-street retail will drive economic growth and offer numerous consumer choices in India as urbanisation progresses and the market adapts.

Connect with FranchiseBAZAR if you are ready to invest in a high street retail franchise today!

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.