Here it is, today's print ad from KB's Fairprice, inviting store owners to join hands with the group and avail the benefits of an IT enabled, scale back - end, while ensuring a standardized front end and uniform shopping experience.
I have discussed the franchisee expansion model in my earlier posts here & here.
I firmly believe that it has the power to address the job loss due to FDI in retail, and other theories that currently limit the growth of this channel - mainly due to lack of funds to expand the coverage network.
Mr Biyani in his interview here had mentioned the plan to expand store coverage in Delhi and Mumbai through a franchisee network. Today's ad has set the ball rolling.
KB's Fairprice has a large store network in Delhi & Mumbai - this seems to be a first step in ramping it up nationally.
The website here details the fixed costs and up front investments. It also mentions the selection criteria, the application and training process (a 9 day orientation programme), P&L preparation and the obvious benefits of aligning with the brand.
This truly is a game changing initiative - for two reasons - IMHO.
1) This is a "never before" shout out to retailers across the country - those who want to upgrade themselves, or would like to get the benefits of scale.
2) The clarity and transparent nature of the communication - to be sure, I checked the Nilgiris website also - since it runs on the franchisee model. KBFP's site wins hands down on this front. This is the first time that a large brand has spelt out so clearly what it wants from its partners - the last memorable example was skumars.com (clearly not so memorable now)
Will Mr Biyani & team be able to crack the code ? Will only ATL communication help ? Should they also roll out a retailer engagement plan / road show ? (maybe they have thought of it - it will happen only to the selected franchisees ? How will India's Kirana community respond ? What will be the impact on people like Araamshop.com ?
A strangely intuitive feeling strikes me as write this - would it not help both KBFP & Araamshop to integrate their business models? Perhaps, at some stage they may even end up doing so - and I hope that I am proved right on that count as well !
