Why 7-Eleven is The Best Supermarket Franchise in India for 2024?
Written By: Resham Daswani
When you mark items off your shopping list, such as toothpaste and other products, you are contributing to one of the largest franchise businesses in India. This franchise business operates over 12.8 million locations across India in the form of grocery retail, and it has a combined value of over 19.9 lakh crore. Have you ever wondered about this? Yes. We are talking about supermarket franchise business opportunities in India.
According to several reports, the anticipated value of the supermarket franchise in India is anticipated to reach 10.5 billion dollars by the year 2023. During this period, we will investigate every facet that is necessary for the operation of the supermarket business. Without a doubt, this is one of the most promising business chances that has arisen in recent instances.
What makes a Supermarket Franchise a booming opportunity to start in India in 2024?
Groceries are by far the most expensive category of consumer spending for Indians, who spend more than half of their monthly income on them. The franchisors have to make the most of this opportunity, there is no question about it.
As a result of the vast market potential, numerous brands, both domestic and foreign, are competing with one another for a part of customer spending.
Among all business models, the grocery store franchise has always been in high demand. It also has a simple explanation. The world's population is expanding at a dizzying rate, and with it, the demand for food.
This has led to new expectations for grocery store franchises. Business buyers in this space would do well to invest in a recognisable brand with strong marketing, a diverse product offering, and a solid reputation.
Grocery stores account for about 60% of India's total retail sales. Market participants are drawn to the market due to its size and strong purchasing rate.
Food shopping is an absolute must for any home, right up there with buying fresh produce. They are sold frequently and have a high percentage of repeat purchases.
Due to poor access to finance, technology, and guidelines, India's grocery business is fragmented, unorganised, and mostly small and family-owned. Changing demographics, excessive monetary expansion, and rising incomes are expanding the organised grocery industry with more manufacturers and client attention.
India is the 6th-largest grocery market in the world and has huge growth potential due to its growing population and disposable income. Grocery and grocery shop franchisees have several prospects in India's grocery business, which accounts for 69% of the retail market.
So we have given you some compelling reasons why supermarket franchises are a great investment for aspiring entrepreneurs today.
So let us see, who topped the list this year? Heard of 7-Eleven Supermarket? Yeah. That’s the one that has grown to be the fastest retail franchise in India.
About 7-Eleven Supermarket Franchise in India
The famed global retailer 7-Eleven has entered India with Reliance Retail Ltd. 7-Eleven India's unique, one-stop convenience stores save customers time and provide fast solutions. In India, 7-Eleven will be the first convenience store where consumers can refresh themselves with ready-to-eat food and beverages, refill their daily essentials, and use on-the-go services to get ready for the day.
The stores sell ambitious yet affordable products with hygiene at their centre. 7-Eleven India is working with the Reliance group, pioneers of contemporary retail in India, to provide urban customers with more convenience and inexpensive options.
In 2021, 7-Eleven entered into a master franchise deal with Reliance Retail, which allowed the company to begin franchising in India. Greater Mumbai was the city in which the first retailers opened their doors.
Within the next few months, Reliance Retail intends to reach its goal of opening fifty stores in the Greater Mumbai area, one of which will be the opening of fifteen stores by the end of May.
Also Read: How 7-Eleven plans expansion across the country.
Cost to Start a 7-Eleven Franchise in India 2024
The investment to start a 7-Eleven supermarket franchise in India is approximately Rs 50 lakhs to Rs 1 crore.
Benefits Of Starting a Supermarket Retail Franchise in India
Within the initial stock purchase is where the majority of the initial investment for a grocery store franchise is concentrated. Beginning at a minimum of ₹ 20 to ₹ 30 lakhs, preliminary stock acquisition can be considered a substantial investment.
In addition, pre-opening fees include the lease for the first month that the franchise is not operational. This is because the first month is utilised for the installation of the franchise.
Additionally, pre-opening prices include coverage fees for the franchise, as well as other expenses that include the payments for energy and water that are associated with the franchise.
Even though the grocery franchise accounts for approximately 69% of all retail franchises in India, it may be very difficult to acquire a licence because there are some very strict legal guidelines and guidelines concerning the protection and quality of the products that are purchased.
This makes the licencing process equally difficult and expensive. The initial investment will even cover the licensing fee and all of the obstacles that come with acquiring the licence.
In a nutshell, the first funding that is necessary for the establishment of a supermarket franchise, in addition to the initial inventory purchases and all the other costs, can range anywhere from ₹ 40 to ₹ 60 lakhs.
Key Market Trends Enhancing The Growth of The Supermarket Franchise in India
- Convenient & Rapid Urbanization:
- More and more consumers are placing a premium on choices that save them time and convenience. Supermarkets provide clients with a one-stop option for finding a variety of products, hence reducing the need for them to visit different locations.
- As a result of the rapid urbanisation that is causing people to lead busier lifestyles, supermarkets are becoming more appealing because they offer a diverse selection of products under one roof.
- More Focus on Health & Wellness:
- In response to the increased awareness of health and well-being, supermarkets are increasing the number of organic, gluten-free, and other health-conscious products that they stock in their grocery stores.
- Supermarkets are being encouraged to highlight the quality and freshness of their items as a result of the growing demand from customers for produce that is both fresh and sourced locally.
- Diversified Franchising Opportunities:
- Because of the growing popularity of the franchise business model, supermarkets are now able to swiftly expand their operations with the help of local entrepreneurs. This makes it easier to penetrate the market more quickly and reduces the dangers involved.
- Green Initiatives:
- Eco-friendly and sustainable business practises are increasingly being adopted by supermarkets. These practises include minimising the amount of plastic used and supporting responsible sourcing, both of which are warmly received by consumers who are concerned about the environment.
- Advances in use of Technology:
- To accommodate the growing trend of e-commerce in India, supermarkets are increasingly utilising online platforms for sales and delivery services.
- Several cashless payment solutions have been adopted by supermarkets as a result of the transition towards digital payments, which has resulted in an overall improvement during the shopping experience.
Nevertheless, there is a growing opportunity for all aspiring entrepreneurs who want to start a business of their own in the new year.
Other Top Supermarket Franchises To Consider in India in 2024
Based on your budget, here are some more options you can look out for in 2024.
- Gourmet & More
- Gourmet & more has established smart-sized, premium shopping marts to bring the special flavours from India and around the world close to people's homes and give them a pleasant shopping experience while also meeting their daily grocery needs.
- Our gourmet supermarket's broad assortment of premium goods has taken time and effort to curate. Along with grocery store staples, we provide the best from around the world.
- With a goal to create luxury stores that offer a pleasant shopping experience and carry global brands as well as daily groceries, this is one of the fastes growing convenient store franchises in India.
- The investment range to get started is between Rs 30-40 lakhs.
- Pangea Gourmet
- Pangea Gourmet Franchise sells high-quality food and cooking supplies. They pride themselves on global made local at Pangea. This supermart has everything you need with international groceries.
- Fresh produce, meats, cheeses, and everything else you need in your pantry. Their healthy line includes vegan, gluten-free, sugar-free, organic, and protein snacks and drinks. Their large selection offers the finest value, plus their website features vegetarian and non-vegetarian food blogs!
- You can start this supermarket franchise with an investment of around Rs 50-75 lakhs.
- The Organic Supermarket
- An all-in-one grocery chain, Organic Supermart sells Chemical Free Certified Grocery, Organic Ready-to-Eat, Organic Personal Care, and Organic Garments., and more at competitive prices that our customers Our mission is to provide high-quality organic products at low prices.
- With an investment of Rs 10-15 lakhs you can start your very own retail supermarket franchise in India.
- Hyper Supermarket
- One of the retail pioneers with numerous retail formats, they serve 50 million people annually, picking items and services from 30,000 small, medium, and major entrepreneurs and manufacturers worldwide. They operate 588 shops, including 40 big format stores, and employ 5000 people to meet consumer needs.
- You can get started with a moderate investment range of between Rs 5-10 lakhs.
Reach out to the experts at FranchiseBazar to get started right away with a supermarket franchise anywhere in India.
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.
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