Supermarket & Grocery Franchise in India
This article aims to help you get to know more about the best supermarket franchise and grocery chains that India has to offer. All crucial details of the same will be presented below.
A place where, rest assured, almost all of your material needs will be fulfilled. Supermarkets are indispensable in our lives. From kitchen appliances to bedroom decor; vegetables and fruits to chips and chocolates, a supermarket has a wide variety and array of goods and materials. In relevance to its undue importance, shoppers strive to find the best markets that will get them whatever they wish for.
Food is a basic necessity that all human being including animals needs to survive. Without food, we cannot live for even a week. So, selling groceries, fruits, pulses, rice, and other food products is an ever-growing business. There is no way your supermarket or grocery business will fall.
On the other hand, when you open a supermarket you offer a long range of products. People mostly get attracted to a wide range of quality products at a reasonable rate. Now, that is what most supermarket franchises in India follow.
Consumers find whatever they need in one place rather than wandering around. This is where supermarkets offer a variety of products from different brands. Customers can choose as per their tastes and preference. It not only helps customers get their products but, satisfies them to not waste any time.
Why Supermarket Franchise?
There could be various reasons why you could immediately open a supermarket franchise. Just like the medical industry, the supermarket sector is an ever-growing industry. It is because people need to survive and for that, they need groceries, fruits, pulses, and other food items.
These food items are found in such supermarkets at an affordable price tag. People will surely be attracted to food products as it is their daily requirements along with the price tag.
The demand for a supermarket at least in the Indian market will constantly rise. History has proved that the grocery business is always stable. The perfect example of that would be the COVID-19 pandemic. These are one of the reasons why you should go for any supermarket franchise in India.
Why franchise model for grocery & Supermarket business?
Opening up supermarkets can be of two models: independent and getting a franchise. Now, if you are opening an independent supermarket you need to invest more. There will be a huge risk of getting a good customer base. But, that is not the case if you are taking a supermarket franchise model.
With less investment, you can open up popular supermarket franchises. Supermarket franchises acquire and assemble a wide range of goods and products from individual suppliers. Supermarket Franchises distribute them to retail stores and local customers.
This is the whole arrangement taken care of by supermarket franchises. We are sure an individual will not be able to take up such responsibilities. The only work that you need to do after taking a supermarket franchise is to sell products.
Make sure all customers are satisfied with the services being offered to them. This is why one should go for a supermarket business franchise.
How to choose the best supermarket franchise?
If you choose any supermarket franchise there is no loss for that particular business. Still, many supermarket franchises have done extremely well ever since they were established in the Indian market.
The population is constantly growing and will grow more in the future. Now, food consumption is also increasing day by day. So, this is where the supermarkets come in and face huge profits. This is where supermarkets can offer unique and affordable products to customers.
Now, to choose the best supermarket franchise in India thorough research is a must. These are the following steps that you must do before choosing the right supermarket franchise:-
- Choose a brand that has a good reputation in the market
- Check the business background of every supermarket franchise in India
- Examine which supermarket franchise has a powerful marketing strategy
- Select the supermarket franchise that is offering unique and a wide range of products to customers
- Do check the profit margin and other requirements that fit your interest and capacity
These are some of the important steps that you must go through before opening a supermarket franchise.
Is the supermarket franchise a profitable business?
There is a reason why people choose to open a supermarket franchise or business, especially in the Indian market. Supermarkets come up with great and exciting offers to attract customers but, they earn heavy profits during such offers or sales. Additionally, starting your venture might not be as much profitable as starting a franchise of a reputable supermarket business.
The average kirana store’s profit in India ranges between 1-4%. Sometimes that figure goes quite up and you earn a huge profit from your business. Now, the profit margin to open a supermarket franchise is between 5-20% which is way higher as compared to smaller kirana stores in India. So, if you have a huge investment and are willing to earn a good profit out of it then, open a supermarket chain in India.
What is the minimum investment to start a supermarket?
The investment highly depends on the demand, location, and size of your store. If you do not have a store or land then you need to rent both at a nice location. Now, doing that will increase your total investment to open a supermarket. On the other hand, if you are willing to open your supermarket then again the investment will rise.
The best way to open a supermarket is to take a franchise from a reputable company. Now, the average investment required to open a supermarket in India is between Rs 10 lakhs to Rs 2 crores. The number could go higher depending on the products you are dealing with and the franchise you have selected. Yes, opening a supermarket in India is quite expensive.
Do Supermarket franchise owners get a salary from the company?
You could not say that the owners get a salary from their respective company but, but yes they are paid. The daily work of franchise owners is the same as traditional business owners. If you talk about the administration and management they are all the same as the old traditional business owners. Franchise owners do not have a standard monthly salary. Both franchisee and franchisor make money through doing business together.
A franchise owner makes a profit through profits from sales and services being offered. On the other hand, the franchisor makes a profit through royalties and memberships paid by customers. The profits from sales and services are the leftover amount of money that a supermarket receives which turns out to be the final profit of the franchisee.
List of Best Supermarket & Grocery Franchise in India
1. Big Bazaar
Big Bazaar, home of childhood memories, is owned by the Future Group. It is one of the largest supermarket chains in India. With a large selection in each area, Big Bazaar has been selling several brands and goods at lower costs to the lower-middle and upper-middle classes.
D-Mart franchise is an Indian retail firm that owns and manages a chain of hypermarkets in India. It is known for its low prices and is popular among middle-class families. The products’ availability here is massive and of great quality.
G Fresh Mart allows you to walk away from grocery shopping and welcome an easy relaxed
way of browsing and shopping for groceries. Discover new products and shop for all your food
and grocery needs from the comfort of your home or office.
The franchise is known for its flexible operations & fastest store opening rate. The company usually takes 20-40 days for a ready-to-go G-fresh Outlet. The company also offers customized store themes as per your choice.
|Area Required||400 – 1000 Sq Ft|
|Profit Margin||30-35 %|
4. Star Bazaar
Star Bazaar is considered to be India’s most innovative and significant modern fresh food and grocery retailer. It provides customers with a larger choice of daily necessities, fresh vegetables, poultry, and a variety of Tata brands at amazing prices.
STAR shops are available in two different configurations. First is the star hypermarket format, where food and grocery, fresh produce, bakery, beauty, home needs, and other product categories are all included. This is followed by the STAR market, which serves as a one-stop shop for groceries, fresh produce, fast-moving consumer goods, personal grooming, and general merchandise.
With a nationwide footprint, More Retail is a pioneer in food and grocery retail in India. They offer a wide range of products, everything from clothes to electronics.
|Founder||Kumar Mangalam Birla|
|Franchise Outlet:||751 Supermarkets and 31 Hypermarkets|
Reliance Fresh is one of India’s leading neighborhood retail networks, with a reputation for quality and value. Reliance Fresh, with its USP, is recognized for their low prices. The company claims to be cheaper in comparison to local grocery stores.
Spencer’s Retail is a multi-format retailer that offers its main customers a diverse selection of high-quality products in categories such as food, personal care, fashion, home basics, and electronics.
|Founder||Charles Durrant and John William Spencer; Owned by RP-Sanjiv Goenka Group|
8. Reliance Smart
Reliance smart point Franchise is another Reliance Industries company that provides online services and a one-stop shopping destination for dairy, personal care, vegetables, and groceries.
|Investment Required||20 – 50 Lakhs|
Hypercity is a supermarket chain that sells food, household goods, and clothing. In spite of having only a few outlets across the country, Hypercity has made a name for itself as a famous supermarket.
10. Spar Hypermarket
Spar hypermarket has a vast range of high-quality products in every category, including groceries, fruits and vegetables, bakery, dairy, meat, poultry, fish, wine, beer, spirits, and personal care.
|Founder||Max Hypermarkets India Pvt. Ltd|
With this, we see that there are no shortages in the number of well-accredited supermarkets in India. Such stores and supermarkets play a significant part in organized retailing.