Opening Franchisee in small cities could help brands

Opening Franchisee in small cities could help brands

It’s quite natural for any brand to reap the benefits of the opportunities big towns and mega cities offer. They look to exploit the huge population of metropolis.  Usually, big brands do not want to take risk by moving towards boondocks taking into consideration the less density of population which is aggravated by the absence of youngsters. But this concept has changed dramatically after demonetization. Post demonetization, this market has seen a visible difference especially coming from Tier 2 and 3 cities which were long ignored by brands. The digital payment leading company Paytm has recently said that half of its user base is concentrated in small cities. Smaller cities have proved to be the fastest growing market sector and this is what makes them India’s fastest emerging business location. These brands are keeping an eye on this new market avenue. This has given wings to a more enthusiastic, cognizant and bold consumers. They are creating demands in the market place in tier 2 and 3 cities that the brands are scurrying to entertain. Franchisors are more than happy to fulfill this increase in demand. Let’s have a look on some of the reasons why brands are eyeing smaller cities to expand their presence.

  • Convenient location: Small cities are divided into close-knit localities and the marketplace is common for all. The mouth publicity spreads rapidly than any advertisements in small cities owing to the social gatherings. Contrary to metro cities, small cities are conveniently reachable by the customers.
  • Curtailed Real Estate Rentals: The ever-increasing rentals in metro cities are one of the reasons why brands are planning to shift towards tier 2 and cities. Small cities are dispensing areas with cheaper price as compared to the metro cities to welcome brands in their locality.
  • Opportunity for Unemployed youngsters: Unemployment is another problem India is dealing with right now. The Make in India has been proven as the need of the hour, which is why at one hand when entrepreneurs are taking centre stage, the aspiring businessmen are not lagging behind. The aspiring businessmen are trying to start their business but they find franchising as a secure opportunity to grow fast and eradicate unemployment problems in small cities.
  • Higher expectancy of Return of Investment: The small cities have the potential customers and the franchisee knows the market better, which is why they select the desirable brands and the result reflects in the ROI. Also, the introduction of mall culture is helping brands to find their place to be in eye of customer s. The small cities are quite excited to welcome brands as well as the malls.
  • Reduces the burden on large cities: It also helps to lessen the heavy load on large cities by providing employment to youngsters. The local government also helps these brands to flourish in order to gain opportunities of employment for its young population who are compelled to migrate to big towns.

Apart from taking benefits of this new convenience, these brands are helping the millennial to think of settling to their hometown from where they migrated to big towns in search of job opportunities.


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