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India: Impact of 3G Auctions on Franchising

May 20, 2010 By Pooja Kulkarni Leave a Comment

20th May 2010:(FranchiseExpo.in Exclusive) Finally, after years of waiting, the Indian Cell Phone Consumer will finally be able to enjoy high speed internet access and various other allied services. One would definitely want to consider what would be the impact of 3G services for franchisors, franchisees and the community alike. A quick peek into 3G Auctions:

- Generated a whopping Rs. 67,000 Crore (USD 14.5 Billion) for the Govt. of India, will be most likely used to bridge the fiscal deficit, strengthening the economy

- No PAN India Player

- First 3G Network Upgrade was in Japan, way back in 2001, hence India is about 9 years behind. Most countries around the world now offer 3G services and are considering 4G. Indian Telecom Operators will definitely not bid for 4G as the current 3G auctions have required them to make heavy investments. The 3G auctions has been closely tracked by almost all policy makers, business houses, entrepreneurs not just in India, but globally.

Franchise Sectors to be Positively Impacted: Financial Services and Stock Broking Brands:

Most of the larger PAN India Financial Services and Stock Broking Companies, rely heavily on strong IT systems and networks, especially in smaller cities, where internet connectivity is limited, it affects service quality. Now along with 3G, these franchisees, will open up the market for new customers, which would mean greater competition once the market gets saturated. The IT savvy customers will look for direct online trading and investing.

Retail:

There will be a fall in the costs of IT services. Retail franchisees, will see a slight drop in their IT and software cost. Most of the telecom providers have a Business Solutions division, this division provides internet applications, along with third party service providers, to increase their market penetration. Telecom sector in India, is already the most competitive one, with probably the lowest rates, globally. Smaller Retail Companies will effectively compete with larger ones.

India already large franchising market with over 2000 Plus Franchisors and 120,000 Franchisees will get even more competitive, more international players will enter India, They would have entered India, even otherwise, after all not many can ignore the rising star. Its just that 3G will make it more attractive for them, thanks to the drop in costs as explained below.

Overall benefit for the Indian economy, currently only 9% of India is online and connected to the internet, 3G will usher a revolution, bringing internet browsing costs down. One of the reasons, the web penetration is low in India, is due to its high cost. In the US, you can get a T1 Line for as little as USD 20 a month for unlimited browsing, in India, for a high speed internet line, even if you paid twice as much, you would not be able to get it.

Smart Phone Sales:

There will be a sharp increase in Smart Phone Sales in India. This includes, Apple’s iPhone, Google and HTCs Nexus One, Sony Ericsson and other cell phone cos.

Rise in Demand of IT services, will cause the price to fall. 3G will encourage a lot of IT companies to provide services at the phone level. This will bring the price of expensive Point of Sale systems, down and probably make them redundant. 3G will encourage people to go for iPad, which is a lot more application rich than the current non modifiable Point of Sale systems.

For web entrepreneurs like us that run franchise portals in India, this would mean higher number of users, more traffic and definitely more revenue, so cheers to that. Lets wait and enjoy instead of simply watching and explore the new business and franchise opportunities that unfold for entrepreneurs.

About the Author

Dhawal Shah is an entrepreneur and franchise expert with many years of experience. He publishes FranchiseExpo.in the fastest growing franchises for sale search engine, helping buyers and sellers of franchise opportunities . FranchiseExpo.in has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. FranchiseExpo.in has hundreds of franchises for sale in India, Bangladesh, Nepal, Bhutan and Sri Lanka.

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Franchising, Franchise Business, Franchise India, Franchisees, 3G Auctions, Telecom Providers, Franchise Opportunity, Entrepreneurs,

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Office Depot opens in Kuwait Major IT and office supplies chain opens first Middle East store in Kuwait

February 22, 2010 By Pooja Kulkarni Leave a Comment

By Mark Sutton
Published August 19, 2009
Office Depot has opened its first store in the Middle East, as part of a planned expansion across the region.

The office supplies retailer, which stocks a wide range of IT products, has opened a 900 square metre store at The Avenues mall in Safat, Kuwait.

The store is being operated in partnership with franchise operator MH Alshaya Co, and includes general office supplies, computer supplies, business machines and related supplies, and office furniture.

In IT, the company is selling a large range of solutions, including laptops, consumables and accessories from brands including BlackBerry, Nokia, Sony Ericsson, Apple, HP, Microsoft, Samsung, Acer, Sony, Brother, Netgear, Buffalo, Seagate, Western Digital, Iomega, Targus, Kensington, and CaseLogic among others.

Mohammed Alshaya, executive chairman of M.H. Alshaya Co commented: “We are excited to launch this unique store concept in Kuwait. As the leading retailer in the region we are always determined to offer customers innovative ideas and concepts. Office Depot is the first supplier for businesses and individuals offering to Kuwait’s market full range of products and services fulfilling and exceeding customers’ needs, all under one roof.”

The Office Depot chain, which was founded in the US, is a major retailers of IT solutions for businesses and consumers, with over 1,600 stores worldwide.

John Moore, business director of Office Depot in the Middle East said “Office Depot is all about making life easier. ‘Taking Care Of Business’ is the company motto we live by and we truly believe in.

“This slogan is not only referring to our dominant range of quality products and services, but also to the support and advisory service we provide to all our customers. By combining a high quality office supply products, services and years of experience, we support our customers in finding complete solutions for their businesses and specific requirements. Outstanding service for competitive pricing is a main strength of Office Depot, making it a unique and trustworthy partner for customers all around the world,” he added.

Tags: Kuwait, M. H. Alshaya Company

Filed Under: Computer & Internet, Franchise Business

Ink refilling: A promising franchise 

February 5, 2010 By Pooja Kulkarni Leave a Comment

MANILA, Philippines – There was a time when the idea of computer printer ink refilling was frowned upon because of crude system employed by refillers.

Some 12 million cartridges are used annually worldwide, with only 3 percent being refilled because of fear of damaging printers. Refillers use generic ink, manually use syringes and disregard the need to weigh and change chips, thus causing more harm than good to computer printers.

While most users wanted to cut costs on cartridges and contribute to preserving the environment, they had no choice but to stick with original equipment due to the inefficiency of refilling systems.

But with the advent of modern technology, not to mention the growing need to cut costs and reduce environmental wastes, consumers are beginning to give ink refilling a hard second look. This is evident in the increasing number of ink refilling companies in the country today.

“There is a big market for the refilling and remanufacturing industry in the world, including Asia and the Philippines,” says Bruce Fuller, director for master development of Cartridge World who joined the recent Franchise Expo 2009 held at the SMX Convention Center in Pasay City to explore the prospects of the Australia-based franchise in the local market.

“The estimated global revenue for inkjet cartridges exceeds $31 billion, of which refillers and third-party sellers’ market potential is estimated to be $6 billion,” he enthuses.

A pioneer of the Australian ink refilling franchise which was started in 1997 in Adelaide city, Fuller said that the growing environmental awareness and the global economic slowdown augur well for the business.

He cited that the firm capitalized on these factors and as a proof, the brand has now more than 1,655 outlets in 61 countries and territories, and looks at expanding in Asia and the Middle East.

Voted as one of the fastest growing franchises in Australia, the firm won the coveted Franchisor of the year Award in 2004 and was named Number 1 Toner Replacement Service in the World by Entrepreneur Magazine Franchisee 500 in 2008.
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