The supermarket grocery franchise industry in India is growing like anything. It has been on the market for decades, and now, at the age of Covid-19, we have seen how useful and stable these businesses are. Grocery stores were the only ones who were allowed to open and sell their products.
The industry has given a significant amount of growth to the country. Many supermarket franchises sell food items, groceries, and clothing. The industry has been fluorescent for a long time and yet, this is a perfect opportunity for an opportunity grabber to put his or her money.
But before you invest your capital into this business you need to be very well aware of the conditions, marketing strategies, and data. India is a center point of supermarkets as it has probably the highest number of citizens looking for such opportunities. Despite India being one of the most preferable places for supermarket franchises it is important for you to go through all layers of your supermarket franchise business to launch a bulletproof supermarket franchise in India and make it run on rapid growth.
Factors to Consider Before Starting a Supermarket Franchise in India:
Being truthful, the supermarket franchise industry is quite competitive. Thus before you start any investment, you must walk through some of the major factors. You must consider a few questions such as
- What would be the right budget to establish a supermarket franchise?
- What product range should you opt for maximum sales and high traffic in your store?
Below is a detailed list of factors to consider before investing your capital in a supermarket franchise.
1. Planning a Business:
Before jumping into business, one should see the other side of the journey. You must plan to deal with what’s coming for you. Plenty of things can go wrong if you lack planning.
- Ownership:
Each type of ownership has its flaws and profits. Depending on your situation, you can choose among the partnerships offered. These can be single ownership, corporations, or something unique.
- Cost:
What does a supermarket franchise cost in your area? How much capital would you need in total to establish it alone or in partnership? You can go for a bank loan if needed. However, you must keep some capital on hand for emergencies or unexpected company costs.
- SWOT:
Do a detailed study on the strengths, weaknesses, opportunities, and threats to the market and to your business. It will help you decide the cost and warranty proposition of the franchise, which directly affects your supermarket’s success. Choose the one which can attracts the maximum number of customers to your place.
2. Choosing a Model:
Next, you need to find out which supermarket models are suitable for your business location. Few models only target rich-class people, whereas some only focus on lower and middle-class people. This depends on which area you choose for your supermarket store. Find the one franchise which will help you win over the local people by fulfilling what they need and can afford.
3. Finding a Location:
For establishing a successful supermarket store business, you must do deep research about a flourishing location for your store. The location directly affects your business revenue. Here are a few things you need to care about.
- The location must be easy to reach.
- The location must have a decent ambiance.
- It must not be very far from the main roads.
Some franchise supermarkets themselves offer you locations with fee terms & conditions. You can search for those kinds of treaties as well.
4. Registering Your Franchise:
The next step is equipping your franchise with the right registration & authorization bodies of the corporation.
- Register your franchise as a single or combined partnership store.
- Register for a trade licence in India.
- Get a GST registration number.
- Get an FSSAI registration done.
The registration process can be handled by the franchisor himself/ herself. He/she may help you get all the right documents from the government bodies.
5. Financing Your Supermarket:
Now comes the most important part. Financing is the most sensible step in establishing any new business. Calculate a raw capital amount for your store. The model, location, and types of ownership affect your investment amount. Also, consider the amount you need to keep in emergency savings.
Your employees, racks, products, and maintenance will all demand recurring money from you. A good credit score will help you raise a bank business loan when needed.
6. Setting up Your Store:
Once you have managed the finances, start optimizing your store. Set up the latest designs and showcase systems to attract your customers. The franchisor will help you with the product lineup in your store. They will send products according to your sales and requirements. The franchisor company may also allow you to ask vendors to set up their own shops in your supermarket on rent.
7. Organizing Your Operations:
The next segment to focus on is the operational activities of your supermarket. This step includes your business strategies, including your USPs, opening hours, delivery system, checking point, safety measurements, and payment gateways. Most of these should be handled by the franchisor himself/ herself. The simplest ideas can boost your business. Don’t neglect any idea from your team or partners and save them for the right time. According to the location of the supermarket, the USPs can vary.
We live in the technology era, and therefore one of your prime focuses should be introducing modern technologies to customers for their ease of shopping. Also, take care of the safety measurements, as they are highly important after the Covid-19 time. Choose a franchisor who can help you in all these segments to have an edge in the competition.
8. Marketing and Promoting Your Supermarket:
Once all the above steps are done, go for the branding of your supermarket. Word of mouth works in the case of a physical store, however, you must go beyond that to capture a big crowd in the quickest time possible. Since the franchisor may have a solid brand value, you will always be in profit. In simple words, you don’t need to start from scratch.
You can go for the below-given marketing strategies to promote your supermarket store.
- Advertisements in Local newspapers.
- Sending Brochures.
- Personally informing potential clients.
- Inauguration events.
- Digital marketing through a website, social media, and online ads.
Conclusion:
Supermarket franchises in India will never go out of style. That’s why the industry is attracting many investors. The simplest motive behind investing in it is to make a profit. Typically, a general food supermarket can make 5%-20% of its profit from its sales. Having a strong desire is not enough to win a battle; therefore, this blog is to expose you to detailed step-by-step planning before you excitedly jump into the ocean of the supermarket franchise industry.
So, if you are thinking of going out and looking for a good franchise, then 7Heven is one of the fastest growing supermarket franchises with more than 100+ stores in the country. With these stores, they have created 100+ successful business people with their own supermarket. 7Heven team is proud to tell you about their growing professional family, and they would even love to have you in their franchisee family. Contact them for more details.
