According to a recent study produced by global management
consulting company, A.T. Kearney, India is the world's most
attractive retail destination after Russia, even ahead of China.
The retail sector is currently valued at between US$350 billion, of
which only 5% is classified as "organised retail".
Further, there are a large number of shopping malls that have been,
or are in the process of, being developed in and around major
cities. These "pull factors", combined with the fact that
foreign direct investment in certain sectors, such as retail, is
restricted, means that franchising is increasingly being used as a
market entry strategy for international franchisors and
retailers.
There are now over 800 franchise systems in India including
several Australian franchise systems. These include Gloria
Jean's, Cookie Man, LJ Hooker, Just Cuts and Cartridge World.
Some of the key industry sectors that have embraced the franchising
concept include healthcare, food and