Service will drive franchising: Gaurav Marya

On the sidelines of the 11th edition of the two-day Franchise and Retail show in New Delhi recently, Gaurav Marya, Chairman, Franchise India Holdings - the venture that has aided hundreds of brands launch their franchise operations - spoke to Business Today. Marya has provided franchise consulting services to corporate houses such as Reliance, TVS Motors, Videocon and Geetanjali Gems. He is also credited with aiding the entry of international brands such as Gloria Jeans Coffee, Papa John's Pizza, Yogurberry and US-based Fatburger into India. Edited excerpts:

Q. What are some of the top trends shaping the franchising industry today?

A. If the last decade was about the retail business, then this decade is going to be about the service industry and brands. We have already seen Reliance Retail introduce ResQ to service its customers. Others such as Hindustan Unilever are present through their saloon business. More big companies are going to join the fray as service holds to the key to reach customers.

The big corporate houses aside, even start-ups are emerging in the space. There are start-up ventures that provide maids, gardeners, plumbers, etc. Hence, the service industry will see more business-to-business as well as business-to-consumer initiatives coming up.

Q. How is slowdown playing out for franchising business?

A. Actually, a slowdown is the time when many people quit their regular jobs to try their hand at some small business. I do not see the small and medium ventures affected; only projects of big companies are affected. Besides, this is the best time to generate employment through launching enterprise.

Q. How big is the industry today?

A. I see the complexion of the franchising industry changing. Today, I notice many first-time entrepreneurs entering the fray rather than the traders who dominated the scene earlier. So, clearly, there is an element of start-up to the franchising business that is today valued at $22 billion. This year, the Franchise and Retail event is expected to see at least 500 new business concepts being showcased and, I think will aid 30,000 investors. Last year, our event gave a platform to brands such as Pollo Tropical, Vivafit, Kenny Roger Roasters, Sbarro, Pampered Girls, Polariod Licensing and Swiss Miltary among others.