My name is Amaan and I will provide you with initial details you need to know to open a Puma store in India.
This article will talk about Puma India: How one can Open Puma store in India, what are the requirements and investment needed and whom to contact to begin the process for the same.
HOW TO OPEN A RETAIL FRANCHISE STORE OF PUMA INDIA
A little about Puma India you Must Know
Puma India started its operations in India in 2007 with its first store in Chennai. Until now, Puma India has successfully opened 300 plus stores in various cities. Around 30 of them are Company owned and the remaining purely on franchising business model. Fortunately, since the year 2007, none of the franchisees has ever shut their Puma franchise store. This is clearly a positive sign in itself that the franchisee is making profits with the brand.
If you are looking to diversify or expand your business in retail industry, collaborating with Puma India to open a franchise store is an excellent business opportunity. Puma has the range and a wide young customer base throughout the country.
I personally own a Puma franchise in New Delhi. So I definitely know what its like to deal with Puma India and how much revenues can one make with a Puma store in India.
Without any doubts, it had been an excellent experience to work with Puma India team and of course Puma brand itself. As per the data, Puma is one of the most aspiring brands for the younger generation. So definitely it can turn out to be a good investment in a market like India.
The entire Puma India team is so passionate and impressive that developing business relationship with them is more like beginning a new corporate friendship and expanding knowledge on retail industry and customer relationship to an entirely different level.
PUMA INDIA REQUIREMENTS
Getting to the details on what are the requirements by Puma India for an individual to open a franchise retail store, here is a brief list:
Minimum carpet area is 1000 square feet.
Puma India has set this basic guideline in order to ensure a Puma store with decent area to display the clothing line and enough area to walk around the store. 1000 square feet is inclusive of a warehouse and the trial rooms.
There can be two types of locations; High street and inside a Mall.
For high streets, the only preference is a ground floor without any negotiations.
For malls, one can open a Puma store on the ground or the first floor too depending on the guidelines and zoning factors of the subject Mall.
3. Surrounding Stores
To open a Puma store, Puma India first analyses the surrounding retail stores in the neighborhood of the desired Puma store location that primarily includes; Nike, Adidas, United Colors of Benetton, Tommy Hilfiger, US Polo, Calvin Klein and etc.
So if you already have a location with these stores in the surrounding area, it can be a win-win situation. If you are looking to rent out a store for Puma, you need to keep in mind the presence of these other brands in the neighborhood. This is not a compulsion but one of the recommended factors to prospect franchisees while selecting the location of a Puma store.
If you already have a location without these listed stores in the neighbourhood, you need not be heartbroken. Your location shall be considered by Puma India keeping other factors in mind.
If you take a store with minimum 1000 square feet carpet area, the investment is approx. 50 lacs.
This figure includes the following:
The stock required to operate a store
This figure is inclusive of construction, interiors and fixtures.
BUSINESS MODELS WITH PUMA
There are two types of Puma Store Business Models:
1. ON AND OPERATED STORE (ONO)
ONO stores, in other words are company owned stores. Any prime location in metropolitan cities that demand extremely high rentals are primarily targeted by Puma India with an ONO store. These are the locations like; Linking Road, Colaba, Marine Drive, Connaught Place and etc.
The reason behind this is high rentals. If you are going to be a franchisee, do not own a store area and wish to open a Puma store at a prime location that demands high rental like 20-30 lacs per month, your business won’t make any profits and you might not even meet the break even point. Therefore, Puma India itself invests into stores at these prime locations and operates them itself.
But, if you own a store at a prime location like the ones listed above and wish to open and operate a Puma store all by yourself, there are chances that Puma India will collaborate with you on rental or revenue sharing basis and all expenses shall be borne by Puma India, depending on the mutual business deal agreed.
2. FRANCHISING BUSINESS MODEL
This is the only business model for all of us to open a Puma store.
Every business takes its own time to establish and to create a market of its own. If you are at a two or three tier city where people are not much familiar with a brand like Puma, there can be chances that your business may take a while to bring revenue to your company. So there are lot of factors that derive the revenue from a Puma store.
Speaking on broader terms, on average, a Puma store with a carpet area of 1000 square feet may give final revenue of around 2-2.5 lacs per month.
This is just an approximate figure as a quick reference in order to make you understand the feasibility of opening a puma store with Puma India. it can be less and definitely more. A small store with higher footfall can give you huge revenues whereas a larger store with lower footfall may give less revenue.
But in my opinion, an investment in a franchise store with Puma India will be a great decision.
PROCESS FOR STOCK BUYING
If you are new to retail and have no knowledge on what styles will do good sales at the location for a puma store proposed by you, Puma India will help you to the fullest in stock buying.
Their team will do the research on what styles can do better for the market around your proposed store location and simultaneously train you on the same. Once you gain the knowledge, you yourself can plan the stock buying for your store though Puma India will still review your proposed stock buying and suggest you the improvements, if any.
Stock Buying happens twice a year; Spring Summer and Autumn Winter.
If this is 2015 summer, your buying for Autumn Winter 2015 and Spring Summer 2016 will already have taken place and the Company will be preparing for Buying for Autumn Winter 2016. This means the stock is planned and orders are placed for a season a year and a half in advance.
Puma India team will create the architectural drawing for your proposed store without any charges. They will also provide you with all the fixtures for the store along with the layout of the store interiors and color schemes.
If you have a team to do the construction bit and interiors, you can go ahead with it or else Puma India shall suggest you the companies who can do the work for your store. These are the Companies which conduct the entire construction/interiors for all Puma India company owned stores.
It is recommended to appoint these companies instead of taking a chance with someone new because they know the exact requirement by Puma India and are familiar with the same.
END OF SEASON SALE BENEFITS WITH PUMA India
Every Puma India store will have two Sales in a year that mostly goes on for a period of three months each. That means six months in total the store will offer discounts to its customers.
Now there is a huge benefit to the franchisees during these EOS Sales.
During each sale period, Puma India will incur the following costs of the franchise store:
But the discounts during the EOSS are to be borne by the franchisee. If now you are thinking that what difference will it make, yes it does. It’s beneficial for the franchisee in terms of revenue.
MINIMUM CONTRACT PERIOD
Puma India is very clear on its policies and they actually think from the point of view of a customer and a franchisee. Thereby like other companies, it won’t bind you into a contract of several years.
Minimum contract period between the Franchisee and Puma India is only ONE YEAR.
So within a year you can take a call and decide if you’re happy with the sales and the business plan enough to take it forward for good long term revenues with Puma India.
The good news is, as I mentioned above too, none of the franchisees have yet abandoned the contract with Puma India which means they are satisfied and happy.
So this is definitely a push and motivational factor to opt for a franchise store with Puma India.
CONTACT PUMA INDIA
Puma India Corporate Head Office is based in Bengaluru, Karnataka. You can either contact directly at the phone number or leave an email provided below. The preferable way is to first shoot an email and then probably place a call to the Head Office.
Puma Sports India Private Limited
509, CMH Road, Near-Fab India
Phone : 080 4152 8021
Email : [email protected]
I hope to have delivered all the necessary details you need to know to open a Puma store in India.
Just in case you have any queries, you may leave a comment below and it shall be responded in no time at all.
If you have a query from Puma India, you can mention that too. Your query shall be reported to Puma India and the response will be replied to here underneath your comment/query.
Article by : Amaan
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