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Best Retail Franchise Opportunities For Tier 2 Cities

  • Riya Yadav
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The combination of increasing urbanization and higher disposable income is making the second tier cities in India considerable for the retail business. Entrepreneurs who are looking for good business prospects can consider retail franchises that will satisfy the consumer needs of these budding cities. These cities provide a cheaper surrounding and less rivalry in comparison to the metros. From washing and food franchises to fashion, tier 2 cities offer a wide array of possibilities. This blog will explore some of the best retail franchise in tier 2 cities and the possibilities they provide for potential business owners. 

Best Retail Franchise Opportunities In Tier 2 Cities

1. Laundry Franchise – A Booming Market

How to Choose the Right Dry Cleaning Franchise?
Laundry Franchise – A Booming Market

The newer category of laundries are very much sought after in the Tier 2 cities. As rural towns are invaded with urban cultures, there is a growing need for professional laundries. Tumbledry, which is a frontrunner in the laundry franchise industry, established in India during 2017, is a major competitor in this market these days. Tumbledry scales with demand and can be set up in almost any location which makes it highly profitable and requires little effort to run. 

Key benefits include:  

  • Requires a small amount of money with high returns because of demand  
  • Growing due to the increase in modern standards of laundry.  
  • Tremendous franchise support for beginners. 

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2. Food & Beverage - Top Retail Franchises

F&B franchises have firmly established themselves in Tier 2 cities due to the rise in the eating-out culture. Some of the leading franchises include: 

  • Haldiram’s – A household name of Indian snacks and mid meal products   
  • Domino’s Pizza – Known for its equilibrium demand. 
  • Cafe Coffee Day – A preferable brand for the youth and employed professionals. 

These firms help their franchisees by offering pre-defined business plans along with high levels of brand equity. 

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3. Fashion & Apparel Franchises – Increases Demand for Fashion Brands

The increase in demand of small towns for branded apparels has led to an expansion of fashion retail franchises. Some of the leading fashion labels that are moving into Tier 2 cities are: 

Raymond – Highly reputed brand in men’s casual clothes.   

Manyavar – Ethnic dress brand for marriage and festival season 

Max Fashion – Affordable and stylish garments 

These firms are the  top retail franchise in Tier 2 cities because they have a good primary supply chain with support from these cities. 

4. Grocery Stores and Supermarkets – The Importance of Structured Retail

People in Tier 2 cities are experiencing organized grocery retailing due to enhanced product quality and shopping experience. Major grocery franchisees are: 

Reliance Smart – Famous for affordable and diverse products 

D-Mart – A Discount Store Retailer with a successful business model 

Big Bazaar – A one-stop destination for household needs 

These brands have an established supply chain and support system, making them ideal and one of the best retail franchise in Tier 2 cities. These supermarket chains offer excellent business models with significant profit potential. 

5. Franchises Pharmaceuticals – Demand of the Healthcare Footing

Franchises Pharmaceuticals
Franchises Pharmaceuticals

Due to increased health concern and better infrastructural development, pharmacy chains are flourishing in tier II cities. Some of the best In this category, some of the best franchise options are:   

  • Apollo Pharmacy – A reputed brand in the health sector   
  • MedPlus – Renowned for low price and home delivery   
  • 1mg Pharmacy – Taking a digital first retreat while working offline.   

These franchises assure smooth income flow because of the perpetual demand for medicines and health care remedies.    

6. Franchise For Service of Automobiles and Two-Wheelers – A Very Progressing Segment

Demand for automobile franchise services is on the rise as the ownership of the vehicles increase in smaller cities. The options available here are:   

  • Mahindra First Choice – Multi-brand Car Servicing Franchise.   
  • Hero MotoCorp Service Center – Franchise for the two wheeler segment.   
  • Bosch Car Service – Premium car maintenance services.   

There are many popular franchises with established business systems that are well known and therefore they are highly profitable.     

7. Franchise Retail of Electronics and Mobiles – Fastest Growing Segment

The increased penetration of smartphones and electronics increases the profitability in this area. Choice of franchise brands are:   

  • Vivo and Oppo Exclusive Stores – franchises for popular smartphone brands with higher sales rate.   
  • Reliance Digital – For general electronics products.   
  • Croma – Popular store franchise for electronics 

Why Are Tier 2 Cities Ideal for Best Retail Franchises?

These cities boost a brand’s growth with lower operational costs, increased disposable income, and rising demand for branded products. Unlike metro areas, Tier 2 cities offer easier market penetration to new franchises due to lower market saturation. Here are few more benefits: 

Lower Operational Costs: Rental and labor expenditure is much less when compared to metro cities.  

Increasing Disposable Income: Consumers tend to spend more on branded goods and services.  

 

Growing Urban Lifestyles: There is an increasing demand for organized retail and premium services.  

Less Competition: Unlike metros, new businesses have lesser saturation to combat in Tier 2 cities. 

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Conclusion

Tier 2 cities are ideal for retail franchises across different industries. These businesses are booming, from Tumbledry in the laundry industry to Reliance Smart in the groceries sector, owing to the increasing consumer demand which makes them the best franchise for small towns. 

Disclaimer: The opinions expressed in this article are those of the author. They do not necessarily purport to reflect the values or views of Tumbledry.

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