As a business model of operation, franchising has been successful in many sectors, including education, food and many others, including the jewellery sector. Most of the legacy jewellers now grant franchise rights for their family enterprises.

The trend is gaining fast and with it, the profits. Brands like Tanishq, Gitanjali, TBZ, Orra, etc have seen great success via the franchise model. In this blog we’ll tell some of the reasons why family-owned jewellery businesses are adopting the franchise model and what are the advantages attached to it.

Franchises in jewelry have become a fantastic option for investors over the years. High rents definitely boost operations costs, so franchising is an effective way to balance the finances.

 A Ficci AT-Kearney study predicts that the Indian jewellery market will reach around Rs 5,30,000 crore by 2018. Industry estimates estimate that there are about 1,000,000 jewellers of all sizes and shapes in India. 

Vast expansion via franchising

Let's take Aisshpra's expansion via franchising as an example. Aisshpra is a leading regional player with plans to go national soon. According to them: ‘Our regional stores become a very good publicity point for our brand. It’s always better to open a regional franchise store than opening a store in a far off location in some unknown city. The franchise route is an excellent way to expand. Opening a jewellery store requires a lot of capital and a franchisee helps in getting the funding to you. You don’t have to look out and find someone. Since a franchisee is putting in his hard earned money into the business, he will make sure that the store operates and performs well, which does not happen in a store managed by just a manager. We have 6 franchisees and we are opening 2 more stores this year.’

Senco Gold and Diamonds Company spans across Bengal with its headquarters in Kolkata, and covers a pan India customer base. The brand has company owned and franchisee run stores across India. The brand also exports gold and diamond jewellery to the Middle East, Singapore, UK, and the USA.

So, now let's understand why you should franchise your jewellery business. 

Why should you franchise your Jewellery business?

The jewellery industry is one of the fastest-growing industries around the world, and India, the world's second-largest gold consumer, will always be a magnet for new brands and families to enter the market. 

The global economic outlook and increasing disposable income have made jewellery a major priority, and even the youth see a bright future for the family business in jewellery. With franchising, the jewellery business is predicted to flourish even more and grow immensely in the coming years. 

So, consider franchising if you want to expand your jewellery business at both national and international level. 

Why franchising is the best way to expand your jewellery business?

In the past few decades, franchising has proven successful in expanding businesses. Tanishq, TBZ, Gitanjali, Orra, etc. have all followed this method and grew more and more. 

Here are 5 reasons why you should franchise your jewellery business.

1. Franchising Facilitates Growth of your business

2. Costs-effective

3. Easier management

4. Helps you Develop your brand

5. Motivated franchisees

Growth of your business - Franchising your jewellery business can help you grow your business at a low cost. You do not need to invest in new premises or staff. The growth of sales leads to increased profit, and if you keep this growth going in your business, you will have an asset that you can sell in the future.

Costs-effective - The franchisee finances their own franchise outlet. Although they comply with all the costs and collect the income, the franchisor gets a franchise fee, royalties, or a mark-up on the products they sell.

Easier management - The franchisees also run their own businesses, so you have less management to worry about. The best franchisees will be highly motivated and have local expertise, which will make your work life much easier.

Helps you Develop your brand - A franchisee's capital investment benefits your brand in the long run. The more franchisees you have, the better known your brand becomes.

Motivated franchisees - The franchisee is more likely than a manager to be motivated because of their vested interest in the success of the business and the success of your brand.

Conclusion

We have provided you with 5 reasons why franchising is the best method to expand your jewellery business. Which one you choose will depend on your business situation and the resources you have at your disposal. Whichever method you choose, be prepared to put in the hours and effort needed to achieve success.

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