Indian FMCG major, Dabur, is planning to explore the franchise business model for new U, its beauty retail chain. The move is aimed at accelerating expansion, which the company is hoping will increase its market share. “We are looking to franchise new U to expand its reach, as it is a very simple model to replicate, and can offer a good return on investment. By next fiscal, we should see action on that,” says Parikshit Sharma, CEO, new U. He further adds, “Coming to the franchisee, it will be a no-loss deal for him as apart from stock and fixture investment, the company will be completely supportive to him in terms of providing training material on product knowledge, merchandising, visual merchandising, promotion support, operational efficiencies, etc. This would also give the franchisees a chance to ride on the boom in the beauty retail market with an established brand like new U.”
Posted on: 6-10-10
Source: http://economictimes.indiatimes.com
