Franchising the best route for emerging markets
Franchising your existing business may be the best way for entering into the emerging markets. Markets like China and India have complicated regulations and rules for owning a business and operating it locally. However, the best way seems to be franchising. With the help of franchising, a franchisee can own the business and at the same time the franchisor can also earn a certain percentage out of the profit.
Why should an established business get into the hassles of registration, licensing etc when an alternate option of franchising is available? It takes a lot of time, money and effort to get a new business started. Franchising is the quickest way to enter the emerging markets.
There are many British retailers like Mothercare and Agros that have used successful franchise models to get into the emerging markets. These retailers have earned lots of profit within a very short span of time. Companies have also gained fame and popularity in these new markets.
In the next few years, China can be one of the largest emerging markets with India in the second place. In fact, the country can be largest market within the next ten years. Franchising seems to be the ideal route for many UK companies who can tap these newer markets that have a great potential in the near future.