Tag: Return on Investment

  • Top Clothing Franchises in India: Low-Cost, High-Profit Brands

    If you’re considering venturing into the fashion industry and want to explore the world of clothing brand franchises, you’re in the right place. India’s retail sector is thriving, and clothing franchises offer a lucrative opportunity to tap into this booming market.

    Clothing franchises have the potential to yield significant profits when strategically positioned. Successful marketing also plays a crucial role in their prosperity. Opting for a reputable brand ensures these aspects are well-managed. Requirements for a clothing franchise may vary depending on the brand. Luxurious brands may demand a larger land area and more intricate architectural designs. Conversely, urban brands prioritize locality and sales over aesthetics. With a diverse array of clothing franchises available, you have numerous options to choose from.

    In the global market, clothing companies have always been extremely popular. Because of the quality and positioning of their products, these businesses have established a standard in their industry. Through franchising, these brands have grown their global footprint over the years. These foreign apparel franchises have made India one of their top business destinations since it’s one of the most lucrative marketplaces with lots of business opportunities. However, as numerous local businesses have entered this market and are currently expanding, the rivalry in this space has been fiercer.

    A clothes franchise offers a great opportunity to start a business by selling popular clothing brands with established customer bases and support from the franchisor. In this blog, we will showcase some of the top clothing brand franchises in India that have established a strong presence and have a proven track record of success. Whether you’re interested in high-end luxury fashion, trendy urban wear, ethnic clothing, or sportswear, we’ve got you covered.

    Apparel or Clothing Market Size 2025

    The global apparel market is growing fast. It is expected to increase from $708.81 billion in 2024 to $766.62 billion in 2025, at a CAGR of 8.2%, driven by strong economies, rising investments, and better technology.

    By 2029, the market is projected to reach $1012.31 billion with a CAGR of 7.2%, supported by e-commerce growth, social media, and demand for sportswear. Key trends include the use of AI, blockchain, IoT, and VR/AR to improve fashion, supply chains, and shopping experiences.

    Apparel Global Market Report 2025
    Apparel Global Market Report 2025

    Top Clothing Franchise in India

    S. No. Brand Brand Origin ROI Period
    1 Biba Indian 18–24 months
    2 Allen Solly Indian (Aditya Birla) 24 months
    3 Peter England Indian (Aditya Birla) 24 months
    4 Aurelia Indian 18–24 months
    5 H&M International (Sweden) 3–4 years
    6 Jockey India International (USA) 24 months
    7 Snitch Indian 18–24 months
    8 Raymond Indian 2–3 years
    9 Rupa Garments Indian 18 months
    10 Trylo Intimates Indian 18–24 months
    11 Arvind Limited Indian 2–3 years
    12 Siyaram Indian 2–3 years
    13 V.F. Corporation International (USA) 3 years
    14 Gravity Creation Indian 12–18 months
    15 Pratibha Syntex Limited Indian 18–24 months
    16 Canary London Indian 18–24 months
    17 K-Lounge Indian 2 years
    18 Numero Uno Indian 2 years
    19 Duke India Fashion Ltd. Indian 18–24 months
    20 Wrangler International (USA) 2–3 years
    21 Levi Strauss Co. International (USA) 3–4 years
    22 Fabindia Indian 2–3 years
    23 Being Human Indian 2–3 years
    24 Vero Moda International (Denmark) 2–3 years
    25 Rare Rabbit Indian 18–24 months

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    Biba

    Name Biba
    Investment INR 2-5 crore
    Franchise Units 285
    Area Required 800-1000 sq. ft.
    Franchise Fee INR 10 Lac
    Royalty Fee 5%
    Profit Margin 25% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Biba
    Top Clothing Franchise in India – Biba

    Meena Bindra launched her homegrown fashion label BIBA in Delhi in 1988. The name BIBA means beautiful woman in Punjabi. BIBA is a well-known name in Indian ethnic apparel among Indian customers. BIBA has a wide variety of products, including sarees, salwar, Kurtis, lehenga sets, palazzo pants, dupatta, Anarkali, and more. Its lush and vibrant clothes attract both youngsters and elderly fellows. It has a strong presence in the international market too. Biba also deals in unstitched clothing material for both kids and adults and is one of the most profitable clothing franchise in India.

    An initial investment of 2-5 crore and a retail space ranging from 1000 sqft to 2000 sqft are necessary to launch this garments franchise. Investors must also have a Shop and Establishment Act Licence, GST registration, and company registration as a Private Limited or Limited Liability Partnership. BIBA is one of the best clothing franchises in India. They will provide training and marketing support to the franchise.


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    Allen Solly

    Name Allen Solly
    Investment INR 40-70 Lac
    Franchise Units 250
    Area Required 800-1000 sq. ft.
    Royalty Fee 0
    Apply for Franchise https://bit.ly/3BxoFnd
    Dress Shop Franchise in India - Allen Solly
    Top Clothing Franchise in India – Allen Solly

    Allen Solly, a renowned clothing brand, offers trendy and stylish apparel for men and women. Established in 1993, the brand is known for its contemporary designs and high-quality fashion offerings. Allen Solly has emerged as one of the top retail fashion franchises in India. With its fresh and trendy range of clothing, the brand has played a significant role in shaping the style of the contemporary Indian generation. Offering an incomparable and classy fashion experience, Allen Solly has become a go-to choice for those seeking a unique and stylish wardrobe.


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    Peter England

    Name Peter England
    Investment INR 20-30 Lac
    Franchise Units Around 1000
    Area Required 800-1000 sq. ft.
    Franchise Fee No Fee
    Royalty Fee NA
    Profit Margin 40% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Peter England
    Top Clothing Franchise in India – Peter England

    Peter England, a well-established clothing brand, has gained prominence as a leading name in men’s fashion in India. It was bought out by Kumar Mangalam Birla’s Aditya Birla Fashion label in the year 2000 after it had been founded in Ireland in 1889. If you want to start a successful business, investing in a mens wear franchise can be a great option with strong demand and popular brands. Tops, pants, denim, suits, jackets, and t-shirts are just some of the items available at this men’s wear franchise. With its wide range of stylish apparel and accessories, Peter England has become a go-to brand for men seeking quality, comfort, and modern designs.

    Peter England provides its investors with several services, including consignment stock supply, branding and marketing, store setup assistance, efficient operations, and administration of human resources.

    To embark on a Peter England franchise journey, a minimum initial investment ranging from ₹25 lakhs to ₹35 lakhs is required. Additionally, aspiring franchisees should have access to a dedicated floor area of over 1200 square feet to accommodate the brand’s offerings. As a Peter England franchise owner, you can benefit from the brand’s established reputation, extensive product range, and loyal customer base.

    Aurelia

    Name Aurelia
    Investment INR 60-80 Lac
    Franchise Units Around 500
    Area Required 1200-1500 sq. ft.
    Franchise Fee INR 2-3 Lac
    Royalty Fee NA
    Profit Margin 94% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Aurelia
    Top Clothing Franchise in India – Aurelia

    In 2009, Aurelia was established by OS and AS Pasricha, two brothers. Staying true to traditions while incorporating some modern ideas, this clothing franchise redefines Indian ethnicity. Aurelia has gained popularity among young females and boasts Disha Patani as its brand ambassador. Known for its fancier offerings, Aurelia requires its franchise stores to reflect the brand’s aesthetic. As a franchisee, you can expect training and marketing support from the brand, backed by a 9-year agreement. To succeed as an Aurelia franchise owner, it is essential to possess strong business acumen and a thorough understanding of the industry.

    Investors are helped to elevate their new businesses by Aurelia’s outstanding franchise business plan, which makes it one of the top clothing franchises in India. Aurelia assists its investors with staff training, inventory maintenance, and the seamless operation of their outlets.

    H&M

    Name H&M
    Investment INR 50lakh-1Cr
    Franchise Units 63+
    Area Required 1000-2000 sq. ft.
    Franchise Fee
    Royalty Fee 12%
    Profit Margin
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Aurelia
    Top Clothing Franchise in India – Aurelia

    H&M is a popular clothing brand from Sweden with over 63 stores in India. For current investors, opening a Vero Moda franchise could be a good choice, as it is well-loved by many people. Its popularity makes it one of the best clothing franchises in India. The franchisor takes only 4% of the revenue from the franchisees. An H&M store should have trial rooms, billing counters, and areas to display products. The franchise also needs to hire 6 to 15 staff members and set up ACs, CCTV, and computers with internet access.


    List of All the Brands Under Aditya Birla Fashion | Aditya Birla Clothing Brands
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    Jockey India

    Name Jockey India
    Investment INR 45-50 Lac
    Area Required 1200-1400 sq. ft.
    Franchise Units Around 900
    Franchise Fee Included in Infrastructure Investment
    Royalty Fee NA
    Profit Margin 15-20% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Jockey
    Top Clothing Franchise in India – Jockey

    Jockey, a well-known innerwear brand catering to both men and women, has established a strong reputation in the country. With its brand reliability and quality products, Jockey items are in high demand and sell easily. Jockey has been producing and advertising superior wool socks to unisex undergarments ever since. Jockey India is one of the best clothing franchises in India, and it’s a favorite with both adults and children.

    The brand stands firmly behind its franchise partners, offering comprehensive support for training, store design, and ensuring a high-profit margin. For a Jockey franchise, a land area ranging from 1000 to 1400 sq. ft. is required to set up the store.

    Franchisees receive first-rate advertising and promotion assistance from Jockey India. Boosting recognition of the brand at the national and regional levels is the objective of these campaigns. Promotional events, sales, and the grand opening of the new store will all be announced through digital channels by the marketing team.

    Snitch

    Name Snitch
    Investment INR 20-30 Lac
    Area Required 2000-2500 sq. ft.
    Franchise Units
    Franchise Fee
    Royalty Fee
    Profit Margin 30-40% of retail sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Snitch
    Top Clothing Franchise in India – SNITCH

    SNITCH is a menswear brand aiming to offer affordable fashion for young men in India, with products like formal, casual, sportswear, innerwear, accessories, and perfumes.

    The franchise cost ranges from INR 20 Lakhs to INR 30 Lakhs, depending on location, and requires a store size of 2000 to 2500 sqft in high-traffic areas. Details like franchise fees, royalty, and profit margins are not fully disclosed, so consulting a franchise advisor is recommended.

    SNITCH provides full support and training for business setup, staff, and marketing. The brand plans to open 8-10 franchise stores in South Indian cities like Hyderabad and Chennai.

    Raymond

    Name Raymond
    Investment INR 30-50 Lac
    Area Required 600-1200 sq. ft.
    Franchise Units Around 1000
    Franchise Fee No Fee
    Royalty Fee 30%
    Profit Margin 50% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Raymond
    Top Clothing Franchise in India – Raymond

    Raymond, a prestigious men’s clothing brand in India, is widely recognized for its quality and style. It was in Mumbai that Vijaypat Singhania established Raymond in 1925. This clothing franchise has been around for a long time and is well-respected in India. Raymond offers comprehensive fabric solutions, including the production of wool, linen, and coated fabrics as well as the design and production of suits, trousers, and other garments.

    Raymond is currently focusing on expanding to cities with populations below 5 lakhs. The goal of Raymond’s expansion into tier 4 and tier 5 towns is to further strengthen its leadership position in the fashion and lifestyle industry and to increase its existing franchise footprint.

    When you partner with Raymond as a franchise, you can expect comprehensive support in various aspects. This includes assistance with in-shop design, construction, and business development. To maintain the brand’s standards, a minimum footage requirement of 15 feet is necessary to open a Raymond franchise. With over 90 years of experience, Raymond has earned the trust of customers, ensuring a strong customer base for franchisees. Additionally, the franchisees can benefit from expert guidance provided by the head office, along with the installation of current IT systems to streamline operations and enhance efficiency.


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    Rupa Garments

    Name Rupa Garments
    Investment INR 50,000-1 Lac
    Area Required 350-500 sq. ft.
    Franchise Units More than 1,50,000
    Franchise Fee No Fee
    Royalty Fee NA
    Profit Margin 45-47% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Rupa Garments
    Top Clothing Franchise in India – Rupa Garments

    Established in Kolkata in 1968 by Prahlad Rai Agarwala, Rupa & Company is a prominent name in Indian knitwear, producing an impressive 7 lakh pieces of finished goods daily. Introducing new variants within each sub-brand is something Rupa does regularly to keep up with changing consumer tastes and market demands.

    With a commitment to profitability, Rupa guarantees a 52% return on investment within 1.6 years. When it comes to location, Rupa prefers franchise stores to be situated in high-traffic areas such as malls or bustling high streets. An ideal land area requirement for a Rupa franchise is around 500 sq. ft. These factors contribute to Rupa’s strong presence and success in the innerwear market.

    Even though this clothing franchise is well-established in India, Rupa & Company Ltd. is planning to further increase its footprint by opening additional franchises. Investors are assured of Rupa and Company’s complete backing to establish a successful franchise outlet. Rupa & Company Ltd. has devised a strategy to keep franchise stores from competing with one another and this helps the company’s business to grow further. Rupa & Company Ltd. is one of the low-cost franchises in India.

    Trylo Intimates

    Name Trylo Intimates
    Investment INR 20-30 Lac
    Area Required 400-600 sq. ft.
    Franchise Units Less than 10
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Trylo Intimates
    Top Clothing Franchise in India – Trylo Intimates

    Trylo, a well-known name in the lingerie manufacturing business, boasts nearly 25 years of industry experience and has garnered the trust of the masses. As a franchise partner, you can expect strong support from Trylo, including comprehensive training and assistance with store design. They prioritize the success of their franchise owners, considering it integral to their success. Trylo is dedicated to ensuring that franchise owners do not incur any financial loss while conducting business, reflecting their commitment to fostering mutually beneficial partnerships.


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    Arvind Limited

    Name Arvind Limited
    Investment INR 30-50 Lac
    Area Required 800-1200 sq. ft.
    Franchise Units Around 200
    Franchise Fee INR 5 Lac
    Royalty Fee No Fee
    Profit Margin 45% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Arvind Limited
    Top Clothing Franchise in India – Arvind Limited

    Kasturbhai, Narottambhai, and Chimanbhai were three brothers from Ahmedabad who formed Arvind Ltd in 1931 under the name Arvind Mills Ltd. It is a men’s clothing and suiting fabric dealer. On a global and national scale, Arvind’s fabric market has remained unrivaled. Worldwide clothing brands like Arrow, US Polo Assn, Tommy Hilfiger, Gant, GAP, and private labels like Flying Machine, Newport, Excalibur, and Cherokee are exclusively licensed and marketed by Arvind Ltd. The brand reflects India’s youth fashion.

    The franchise land area is required to be 800-1200 sq. ft. The brand caters to upscale customers and offers Italian fabrics for those who prefer them. The brand will support the franchise with advertising and marketing to increase visibility and guide them to launch festive season campaigns and end-of-season sale promotions.

    With the construction of state-of-the-art garment facilities and the introduction of garment packages to both domestic and foreign clients, the Arvind Ltd franchise has devised a bold plan to consolidate its present operations which makes Arvind Ltd. one of the best clothing franchises in India.  


    List of All the Brands Under Arvind Fashion
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    Siyaram

    Name Siyaram
    Investment INR 25-30 Lac
    Area Required Minimum 700 sq. ft.
    Franchise Units Over 1 Lac
    Franchise Fee Included in Infrastructure Investment
    Royalty Fee Included in Infrastructure Investment
    Profit Margin Around 30-40% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Siyaram's
    Top Clothing Franchise in India – Siyaram’s

    Dharaprasad Poddar established Siyaram’s Silk Mills Ltd. in Mumbai in 1978. Some of its well-known brands are Oxemberg, Siyaram’s Suitings & Shirtings, J. Hampstead Fabric & Apparel, Mistair, Cadini, Royale Linen, and Miniature. Siyaram boasts an extensive network of 1 lakh retail stores, indicating its popularity among the masses. As a franchise owner, Siyaram expects you to possess a comprehensive understanding of fashion trends and a relentless pursuit of perfection. In return, the company promises a substantial 30% return on investment within a span of 3 to 4 years. This commitment to profitability reflects Siyaram’s dedication to fostering successful and mutually beneficial partnerships with their franchise owners.

    In addition to offering an attractive franchise opportunity to potential investors, Siyaram’s provides a range of services, including assistance with site evaluation, and selection as well as design and layout assistance for each shop. To make management easy and deliver the finest client experience, this clothing franchise also offers IT and continuous operational assistance, as well as audits. To help franchises succeed, the company offers unmatched advertising and marketing resources which helps in making it one of the best clothing franchises in India.


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    V.F. Corporation

    Name VF Corporation
    Investment INR 10-15 Lac
    Franchise Units
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - VF Corporation
    Top Clothing Franchise in India – VF Corporation

    VF Corporation offers a unique proposition by bringing together multiple popular fashion brands under one roof. With a diverse portfolio of fashion labels, VF Corporation provides a promising opportunity for franchisees to capitalize on the wide variety of offerings and generate profits. The company takes responsibility for training and development, ensuring franchisees receive the necessary support to thrive. For additional details and inquiries, interested franchise owners are encouraged to contact the corporation directly for further information. It is one of the low-cost clothing franchise in India.

    Gravity Creation

    Name Gravity Creation
    Investment INR 10-20 Lac
    Area Required 400-900 sq. ft.
    Franchise Units 20-50
    Royalty Fee No Royalty
    Profit Margin 35% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Gravity Creation
    Top Clothing Franchise in India – Gravity Creation

    Gravity Creation is a prominent brand specializing in men’s ready-made garments. They offer franchise opportunities that can be established anywhere in India, as they have no specific location preferences. When partnering with Gravity Creation, franchisees can benefit from various support services. This includes assistance with interior setup, site selection, comprehensive training programs, inventory management, digital marketing support, administrative guidance, brand promotion initiatives, and assistance with staff recruitment. To become a franchise owner, it is necessary to have your property and apply through Franchise India. The minimum required land area for a Gravity Creation franchise is 300 square feet.

    Pratibha Syntex Limited

    Name Pratibha Syntex Limited
    Investment INR 10-20 Lac
    Area Required 100-1500 sq. ft
    Franchise Units Around 200
    Franchise Fee No Fee
    Royalty Fee Included in Infrastructure Investment
    Profit Margin 30% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Pratibha Syntex Ltd.
    Top Clothing Franchise in India – Pratibha Syntex Ltd.

    Starting with spinning mills in the Pithampur district, Shiv Kumar Chaudhary embarked on a path that would become Pratibha Syntex Ltd. in 1997. Pratibha Syntex has made a name for itself by curating a diverse collection of popular brands, including renowned names like Zara and Nike, under one roof. Pratibha Syntex Ltd. not only contracts manufactures and exports for Zara and Nike, but also for leading US and European brands such as H&M, Patagonia, G-Star, Columbia, and more.

    Their strategic approach of creating a one-stop shop for all these popular brands has contributed significantly to their substantial growth in recent years. Moreover, Pratibha Syntex is deeply committed to creating opportunities not only for its employees but also for farmers and individuals from across the globe. Their dedication to fostering a global network of opportunities reflects their vision of inclusivity and sustainable growth.

    With a focus on building relationships across the value chain, Pratibha Syntex Ltd. brings together revered global fashion companies from more than 20 countries with more than 35,000 farmers and 10,000 employees. Pratibha Syntex Ltd. is the best clothing brand franchise under 10 Lakh.


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    Canary London

    Name Canary London
    Investment INR 5-10 Lac
    Area Required 400-500 sq. ft.
    Franchise Units 90+
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Canary London
    Top Clothing Franchise in India – Canary London

    Canary London is a leading purveyor of fine fashion, delivering exquisite clothing to its customers. It has rapidly emerged as one of the fastest-growing clothing chains in India. True to its name, Canary London brings an international flair to its clothing, captivating the discerning shoppers. Franchise owners partnering with Canary London can expect comprehensive guidance in marketing and designing, alleviating the hassle associated with these aspects of the business. Additionally, franchisees will receive valuable training and ongoing support to ensure their success within the brand.


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    K-Lounge

    Name K-Lounge
    Investment INR 30-50 Lac
    Area Required 400-122 sq. ft.
    Franchise Units 180
    Franchise Fee Included in Infrastructure Investment
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - K-Lounge
    Top Clothing Franchise in India – K-Lounge

    K-Lounge entices a large number of young buyers with its fashionable clothing offerings. Over the years, the brand has significantly expanded its presence in the Indian market. With a focus on young girls and boys, K-Lounge caters to the preferences of its target shoppers. To become a franchise owner, a genuine passion for fashion is essential, as is a dedicated commitment to gradually increasing sales. By aligning with K-Lounge, franchise owners can tap into the growing demand for trendy clothing among the youth demographic.


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    Numero Uno

    Name Numero Uno
    Investment INR 10-20 Lac
    Area Required 500-1000 sq. ft.
    Franchise Units Around 500
    Franchise Fee No Fee
    Royalty Fee Included in the Infrastructure Investment
    Profit Margin 40% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Numero Uno
    Top Clothing Franchise in India – Numero Uno

    Under the leadership of CMD Narinder Singh Dhingra, Hi Fashion Clothing Co. founded Numero Uno in 1987, making it one of the first denim labels in India to be made indigenously. The company’s name was changed to Numero Uno Clothing Ltd. on April 1, 2007, to reflect its expanding presence in both domestic and international markets. A new and modern experience is offered to customers by reflecting the new identity across all Numero Uno products, retail, and digital channels.

    Providing investors with several services, including staff training, marketing assistance, store support, and assistance with inventory management, this apparel franchise is further expanding its wings through its franchise company. To establish a franchise, a minimum land area of 500-1000 sq. ft. is required, and franchise locations can be chosen anywhere across India. The brand offers a lifetime tenure, allowing franchise owners to have a long-term association. Numero Uno has gained popularity, particularly among young individuals, with its trendy denim offerings and stylish t-shirts. By partnering with Numero Uno, franchise owners can tap into the brand’s appeal among the youth demographic and capitalize on the demand for cool and fashionable clothing.


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    Duke India Fashion Ltd.

    Name Duke India Fashion Ltd.
    Investment INR 30-40 Lac
    Area Required 700-1000 sq. ft.
    Franchise Units 4000
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Duke India Fashion Ltd.
    Top Clothing Franchise in India – Duke India Fashion Ltd.

    In 1966, Komal Kumar Jain founded Duke Fashions in Ludhiana, which is now one of the most prominent footwear and clothing brands in India. Duke Fashions offers a customized selection of inexpensive, high-quality fashion and fashion basics at over 400 Exclusive Brand Outlets (EBOs) and over 4000 Multi-Brand Outlets (MBOs) around the country. Duke Fashions is a multi brand clothing store franchise.

    More than 250 towns and cities in India are home to Duke Fashions stores. Duke’s goal is to cater to the Premium and Mid-Premium market by offering reasonably priced, high-quality apparel with modern designs. Duke Clothing is one of the best clothing franchise businesses in India.

    Wrangler

    Name Wrangler
    Investment INR 30-40 Lac
    Area Required 700-1000 sq. ft.
    Franchise Units 60+
    Franchise Fee Included in Infrastructure Investment
    Royalty Fee Included in Infrastructure Investment
    Profit Margin 80% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Wrangler
    Top Clothing Franchise in India – Wrangler

    Wrangler is one of the pioneers in the apparel business. In 1947, CC Hudson and Homer Hudson started the clothing franchise in Greensboro, USA. As soon as Wrangler achieved popularity in the US market, it began to spread its wings to other nations. To strengthen its position in the global market, Wrangler launched its franchise business in the year 2000. Investors receive training and marketing assistance as the Wrangler expands across India. With more than 60 units across the country, Wrangler operates with a standard agreement of 5 years.

    Levi Strauss Co.

    Name Levi Strauss Co.
    Investment INR 30-50 Lac
    Area Required 800-1000 sq. ft.
    Franchise Units Around 50
    Franchise Fee INR 5-10 Lac
    Royalty Fee 10-15%
    Profit Margin 15-24% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Levi Strauss Co.
    Top Clothing Franchise in India – Levi Strauss Co.

    Levi Strauss established the Levi Strauss Co. in San Francisco in 1853. As of May 2024, this apparel franchise has over 500 locations worldwide, and it is steadily expanding its franchise company footprints in the international market.  Investors receive a wealth of services from this clothing franchise including free consultations, assistance in finding a store’s location, a retail layout design, staff training, and much more. Levi Strauss Co. is one of the famous clothing brand franchises in India.

    Fabindia

    Name Fabindia
    Investment INR 10-15 Lac
    Area Required 1500-2000 sq. ft.
    Franchise Units 355
    Franchise Fee Around INR 5 Lac
    Royalty Fee 0
    Profit Margin 30-40% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Fabindia
    Top Clothing Franchise in India – Fabindia

    John Bissell established Fabindia in New Delhi in the year
    1960. The diverse and vibrant craft traditions of India are celebrated by this
    clothing franchise. Fabindia is a prominent player in the Indian market and the
    largest private marketplace for products crafted using traditional arts and
    expertise.

    Because of its emphasis on handicrafts and handmade goods, Fabindia acts as a perfect connector between urban and rural regions. Because of this link, Fabindia generates money and jobs in both regions.

    One unique selling point of the Fabindia brand is the business’s franchising cost flexibility. Opening a small store can cost anywhere from 10 to 15 lakhs rupees, with a contract charge of around 5 lakhs rupees and a waived royalty fee added on top.

    Being Human

    Name Being Human
    Investment INR 50 lac- 1 crore
    Area Required 1200-1500 sq. ft.
    Franchise Units Around 600
    Profit Margin 15-20% sales
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Being Human
    Top Clothing Franchise in India – Being Human

    In 2012, the Being Human – The Salman Khan Foundation established the Being Human Clothing franchise to advance their mission. Being Human is one of the most prominent apparel franchises in India. Being Human is a well-known brand of Mandhana Industries Ltd, a diverse and multi-locational textile and clothing manufacturing company. Fast return on investment (ROI), assistance with outlet promotion planning and implementation, and hassle-free advertising and marketing programs are all benefits of investing in this clothing franchise. Among Indian franchises, Being Human is by far the most well-liked and quickly expanding.

    Vero Moda

    Name Vero Moda
    Investment INR 35-55 lakhs
    Area Required 1200-1500 sq. ft.
    Franchise Units 200+
    Profit Margin 20%
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Vero Moda
    Top Clothing Franchise in India – Vero Moda

    Vero Moda is a well-known European clothing brand and has ranked 10th among the best clothing franchises in India.

    To open a Vero Moda store, you need to have air conditioning, CCTV cameras, an internet connection, a trial room, a billing counter, and space to display clothes.

    The brand is popular for its stylish and trendy women’s fashion. It is a great option for people who want to invest in a well-known clothing business.

    Rare Rabbit

    Name Rare Rabbit
    Investment INR 20 and 30 lakhs
    Area Required
    Franchise Units
    Profit Margin 20-30%
    Apply for Franchise https://bit.ly/3BxoFnd
    Top Clothing Franchise in India - Rare Rabbit
    Top Clothing Franchise in India – Rare Rabbit

    Starting a Rare Rabbit franchise is a step-by-step process. First, do some research about the brand, its market, and competitors. Then, make a simple business plan and contact Rare Rabbit to apply for the franchise.

    Next, arrange money through savings, loans, or investors. Choose a good location for your store and set it up as per Rare Rabbit’s brand style. You’ll also need to hire staff and attend training sessions given by the company.

    Once everything is ready, use the company’s marketing help to promote your store. A grand opening event can help attract customers and build interest.

    Conclusion

    Investing in a clothing brand franchise in India can be a rewarding and exciting venture, leveraging the country’s thriving retail industry. Each brand mentioned in this blog offers unique opportunities for aspiring franchisees to enter the fashion market with established and reputable labels. Carefully evaluate factors such as brand positioning, investment requirements, growth potential, and ongoing support before making a decision. Remember, partnering with a renowned clothing brand can provide a solid foundation for success in the competitive Indian fashion landscape. Choose wisely, embrace the possibilities, and embark on your journey to becoming a part of the thriving clothing franchise industry in India.

    FAQ

    What is a clothing brand franchise?

    A clothing brand franchise is a business opportunity where individuals can partner with an established clothing brand to open and operate a retail store or outlet. Franchisees benefit from the brand’s reputation, marketing support, training, and operational assistance.

    Biba, Aurelia, Jockey, Raymond, Rupa Garments, Zara, Siyaram, K-Lounge, and more are some of the most popular clothing franchise in India.

    Is clothing franchise profitable in India?

    Yes, Clothing franchise business is a lucrative business if established properly.

    How do I choose the best clothing brand franchise in India?

    Choosing the best clothing brand franchise involves considering factors such as brand reputation, target market, investment requirements, growth potential, ongoing support, and personal interests. It’s important to conduct thorough research, evaluate different options, and match them with your business goals and capabilities.

    How to open fashion franchise?

    To open a fashion franchise, start by researching and selecting a reputable fashion brand that aligns with your interests and target market. Contact the brand’s franchise department to inquire about their requirements, investment details, and support provided. Once you meet the criteria, sign the franchise agreement, secure a suitable location, and follow the brand’s guidelines to set up your fashion franchise store.

    What kind of support can I expect from a clothing brand franchise?

    Clothing brand franchises generally provide support in areas such as store setup, site selection, training programs, marketing and advertising, inventory management, and ongoing operational guidance.

    Are financing options available for clothing brand franchises?

    Some clothing brand franchises may have partnerships or tie-ups with financial institutions that offer financing options to potential franchisees. It’s recommended to inquire about such options and explore financing opportunities during the franchise evaluation process.

    Which are the clothing brand franchise under 10 lakhs?

    Manyavar, FabIndia, W for WOmen, Biba, Zudio, Peter England are a few clothing franchise under 10 lakhs.

    Which is the best clothing franchise in India?

    The best clothing franchises in India include brands like Biba, Allen Solly, Peter England, Raymond, and Vero Moda. They are popular for quality products, strong brand presence, and good business opportunities.

    What is the clothing franchise cost in India?

    Clothing franchise costs in India usually range from INR 20 lakhs to INR 2 crores, depending on the brand and store size.

    Which is the clothing franchise under 5 lakhs?

    Some clothing franchises in India are available for under ₹5 lakhs, making them perfect for small investors or first-time business owners. Brands like Snitch, Gravity Creation, K-Lounge, and Canary London offer affordable franchise options with good growth potential in the market.

    What is Rare Rabbit franchise cost?

    Rare Rabbit franchise costs lie between INR 20 lakhs to INR 30 lakhs.

    What is Snitch franchise profit margin?

    The Snitch franchise profit margin is 30% or 40% of retail sales and Snitch franchise cost is INR 20-30 lakhs.

  • How Crocs Managed to Gain Its Marketing ROI? | Popular Strategies Adopted by Crocs

    Crocs is a footwear brand, which had always impressed its customers with its unique edges. It is an American footwear company founded by George Boedecker, Lyndon Hanson, and Scott Seamans. Crocs are mainly focused on manufacturing foam-clogged shoes that fit one’s feet so well. The creative department of Crocs is known to spotlight the customer’s comfort. They focus on versatility, hard-wearing sole, recent fashion trends, and long-lasting material, and then come up with a mind-blowing product. The subject of uniqueness is highlighted in every product launch.

    During the pandemic, when most companies were facing losses, Crocs managed to score a positive change in its revenue. Its revenue for the year 2020 was recorded to be $1.4 billion which was far more than its competitors in the market. Since then, Crocs has only walked towards the path of growth. In this article, we will go through how Crocs managed to increase its marketing ROI and rise above its competitors.

    How Crocs Gained Its Marketing ROI?

    Other Strategies by Crocs
    Crocs’ Performance

    How Crocs Became a Billion-Dollar Brand?

    How Crocs Gained Its Marketing ROI?

    Crocs were reaching new heights through its retail markets until the pandemic turned the world upside down. Every one of us experienced sudden mobility from offline mode to online in the past few years. Ecommerce was leading the sales and the local shops and markets faced drastic falls. Well, of course, a brand like Crocs could not sit back for the pandemic to filter away. Therefore, the company introduced its digital channels.

    Let’s have a glimpse of how this brand successfully brought back an increased marketing ROI in such a crisis. The employees of the brand communicated through video conferences during their working time and discovered new products together. Crocs invested a great amount in its digital channels. It came up with ideas to increase its target audience to attract more customers. The following are the marketing strategies that helped Crocs increase its marketing ROI:

    Marketing Expenses of Crocs Worldwide from 2016 to 2021
    Marketing Expenses of Crocs Worldwide from 2016 to 2021

    Increased Investment in Digital Channels

    During the pandemic, Crocs understood the need to make a shift from offline to online channels. So, looking at the importance of the online world, Crocs increased its investments in digital marketing channels and Microsoft advertising in order to better target the customers.

    “Paid search is one of our most important digital advertising channels. Customer acquisition is, like for many brands, a huge part of our current and go-forward strategy and paid search allows us to target and grow our customer acquisition efforts, more than any other channel. We leverage paid search to find more consumers, and that has been one of our highest-performing channels from an ROI (returns on investment) standpoint. Paid search is one of our highest-performing channels globally.” said Adam Michaels, Chief Digital Officer at Crocs.

    He further added, “The return we saw through Microsoft Advertising accelerated during this time. When we saw the increase in return, it really gave our team the confidence to invest more budget. And we were seeing that return in a relatively short amount of time, which not only helps us with an immediate benefit in the quarter but also, we believe is bringing consumers into the brand.”

    Crocs’ digital strategy contributed to the revenue of $361.7 million in the third quarter of 2020 with digital sales up 35.5%.

    Free Pair for Healthcare Campaign

    Crocs Free Pair for Healthcare Campaign
    Crocs Free Pair for Healthcare Campaign

    Well, digital marketing is not the only effort they put to get such success. Crocs tried to bring a change in its marketing strategies and look at their increased marketing ROI now! Just when the pandemic struck hard like thunder, Crocs took the initiative to help the needy ones. During the pandemic, the brand donated nearly 860,000 pairs of Crocs to healthcare workers in the USA and also in Europe and Canada. It was a token of their efforts to save human lives. Health workers were the living God during the pandemic period and such a tribute from Crocs encouraged worldly humanity.

    Have you ever thought about the question- Why did Crocs take such an initiative? Well, health workers supported the company as a part of its consumer base for years. Therefore, when the world was drowning because of helplessness, the health workers came and stood on the front line.

    Crocs needed to communicate with more customers to increase their sales and trust me, nothing can be a better idea than impressing humankind with genuine campaigns and activities.

    Huge Celebrity Following

    People have a different attachment to the rising young celebrities and this brand hits this spot. Hiring the most trending celebrities as the brand ambassador of a footwear brand is a part of a marketing strategy. Furthermore, it automatically attracts more customers. Just think that you are a fan of certain somebody and then you see them advertising a product, wouldn’t you approach that thing in your nearest supermarkets? The most famous brand ambassadors of Crocs to date are Priyanka Chopra Jonas, Zooey Deschanel, Suzu Hirose, and more. They are the perfect definition of “the best”. Crocs also initiate different TVCs, banner ads, social media hunts, and likewise.

    Apart from this, Crocs also launched collections in collaboration with celebrities like Crocs x Justin Bieber with Drew collaboration and Post Malone X Crocs. All this also helped the brand to increase its popularity among the customers and hence an increased ROI.


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    Other Strategies by Crocs

    Crocs Net Revenue Worldwide from 2016 to 2021
    Crocs Net Revenue Worldwide from 2016 to 2021

    The strategies of Crocs are no doubt the best to date. Their comeback in just a few years after things started becoming normal, is enormously unexpected. But what are these strategies and how do they work? The following are some of the strategies that help Crocs stay on top:

    Analysis of Customer’s Choice

    The globe gave birth to uncountable competitive footwear brands and no wonder, Crocs is one of the best! The competition takes place based on product uniqueness, regular launches, quality, trend, customer service, brand awareness, and marketing sales. Moreover, Crocs manufacture pairs of footwear that can easily fit the locals, athletes, as well as injured ones. The brand keeps in mind every possible way to set a new trend with every launch it makes and such a spotlight on customer analysis is quite impressive for a footwear brand.

    Segmentation

    Psychographic, as well as demographic segmentation, is a must while raising your marketing ROI and Crocs knew this fact very well. Moreover, this brand throws light on factors like marital status, size, age, location, gender, and likewise in its customers’ lives. Therefore, they try their best to know the customer’s liking to provide them with comfort. Whether you talk about casual pairs or some mix-up with personal styles, Crocs brings you everything you ask for. However, this would not have been possible without psychographic segmentation and mobile communications.

    Competitive Analysis

    Crocs have a limited stock of footwear every time it launches something new. This automatically creates a sense of rush among the customers to equip the new. Crocs have many competitors like Nike, Adidas, and more. All such brands offer a wide variety of footwear but Crocs focuses on a specific niche which is the clogs. This competitive analysis by the brand helps it gain a competitive advantage over other brands. Crocs managed to sell over 103 million pairs of footwear in the year 2021 when its competitors were nowhere near such sales and revenue.

    Crocs’ Performance

    Crocs reported revenue of around $1.4 billion in the year 2020. It was the time of the pandemic when most of its competitors were facing losses. Crocs’ growth didn’t just stop here, it managed to score an even bigger revenue in the year 2021 which was $2.3 billion. So, the brand saw a growth of nearly 67% from 2020 to 2021. It was the brand’s strategic marketing techniques that helped in increasing its marketing ROI and become a much-loved brand among the customers.

    During a recent event hosted by Crocs, the company’s CEO shared insights into their future strategies. It was discussed that the company forecasts an annual growth rate of more than 17% with the expectation of the revenue to rise to more than $5 billion by the year 2026.

    Conclusion

    Crocs sell a huge variety of shoes and all of them provide a perfect fit for everyone’s feet. The pairs of comfortable clogs helped the brand to reach the top position. They are comfortable, unique, soft, and eye-soothing at the same time. A perfect pair of shoes can compliment a simple outfit and trust me, Crocs hold this power. Fans are in love with the Crocs shoes and the trends they set. The pricing as well as the campaigns it organizes, has played the most important role in increasing its marketing ROI.

    FAQs

    Are Crocs successful?

    During the pandemic, Crocs managed to gain a great amount of popularity among customers. In 2020, the brand’s revenues reached $1.4 billion which is a 12.6% rise from the previous year.

    What is Crocs’ competitive advantage?

    Crocs offer a limited stock of footwear every time it launches something new. This automatically creates a sense of rush among the customers to equip the new. Also, the brand’s unique yet simple, easy-to-clean, and attractive designs give it a competitive advantage.

    Who are Crocs’ main competitors?

    The main competitors of Crocs include:

    • Sketchers
    • Timberland
    • Converse
    • Nike
    • Reebok
  • Top 10 Metrics That Matter in Email Marketing

    Email marketing is one of the best marketing techniques in today’s time. However, it needs the best practices in mind to ace the final field of success. If you are willing to donate your time to practice for good, then it is better to use it in creating campaigns, getting control of the small rookie mistakes you make, and optimizing emails to expand working engagement. These are of course the basic steps but also paramount. However, these are not the only strategies that will lead you to success. In this article, we will go through some of the most important metrics that matter in measuring the success of your email marketing strategy.

    However, before you dig too deep into learning the metrics for successful email marketing, you must pen down your goals in this field. Also the first step toward having an idea about your goals and dreams is to know what exactly ‘Email marketing’ is.

    What is Email Marketing?
    Most Important Email Marketing Metrics

    Email Marketing for Beginners 

    What is Email Marketing?

    Number of Email Users Worldwide from 2017 to 2022
    Number of Email Users Worldwide from 2017 to 2022

    Technically, it is an act of sending official information or messages to a concerned team of workers or an individual via email. However, most of the messages are commercial and in this context, for every email you sent to a customer, the whole act becomes a part of email marketing. In simple terms, emails sent for a commercial purpose are considered the act of email marketing.

    Furthermore, email marketing involves sending requests for business, advertisements, soliciting donations, sales divisions, and more. However, the regular change of metrics has no impact on the basic three strategies you need to know before stepping into the world of email marketing that are- trust, loyalty, and brand awareness. These three are probably the most basic foundation to enhance the relationship between a merchant and its customers.

    Most Important Email Marketing Metrics

    The metrics used in email marketing keep on changing from time to time. So it is always better to stay up-to-date with the marketing policies, and trends, and then pen down the strategies for one’s business. The following are some of the most important metrics of email marketing:

    Conversion Rate

    The first metric on the list is conversion rate. This rate refers to the percentage of people who not only opened your email but also performed the desired action. This is considered as the most important amongst all as this metric is what really defines the ultimate goal of any email marketing campaign. It is usually suggested that a conversion rate should stay above 2% in order to ensure the effectiveness of a campaign.

    Click-Through Rate (CTR)

    Email Click-Through Rate as per Days of the Week
    Email Click-Through Rate as per Days of the Week

    Every time you are sending an email to your subscribed customers, try to insert CTR to link them with the concerned website with just a touch. The easier you make it for the customers to visit your main page, the higher traffic you will receive within a few days. Moreover, CTR is a very common type of metric that measures customer traffic to your site or the number of people who clicked on the links that are present in your email list. Therefore, if your goal is to expand the effects of your email marketing across the world, it’s time to boost your CTR. Moreover, it is always better to add attractive one-liners under or above the links to convince the customers to visit the link.

    Bounce Rate

    Do you know what is the most common nightmare in the case of email marketing? When you send an email to your customers and it doesn’t get delivered. Well, this might be due to casualties from your side or a technical glitch. But this is something you should keep a check on whenever you send a business email. You must be wondering how is this possible, well that is what bounce rates are for! Generally, it keeps a count of how many applied email addresses did not receive your email.

    If your email contains hard bounces then it may imply that your email is full of spam stuff. So, when the bounce rate is low, it means that your emails are of good quality and when the bounce rate is high, that indicates poor quality emails. Therefore, bounce rate is one of the most important email marketing metric.


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    The Return on Investment (ROI)

    Spending efforts on those subscribed customers who are of no benefit to your finance must be eliminated. Stop wasting your money on ineffective campaigns that bring no good to your business. So here comes another important metric for email marketing. This metric is extremely important as it helps you to know the returns you are getting on your campaign investment. Also focus on other metrics like web traffic, clicks, and conversions as it plays a very important role in tracking the ROI of a concerned email.

    Open Rate

    Email Open Rate as per Dyas of the Week
    Email Open Rate as per Dyas of the Week

    Whenever you are searching for the best metrics to make your email marketing reach to the best heights, your open rate is what you must focus on. The email open rate is widely influenced by subject line performance. Just remember that if your email campaigns have high open rates then it implies spam-proof content. Make your products and advertisements more appealing so that it brings home benefits after the first launch. You must be thinking that how to calculate the email open rate. Well, you can do this with the help of the formula- Divide the number of emails read by the total number of emails sent. And then multiply the resultant by 100 and here you get the answer!


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    Spam Complaint

    Replay your mind through the spam folder while you are calculating the email metrics. You must know that the customers have the authority to report your email as soon as they find something weird or suspicious. Spam attacks are quite common in emails. Therefore, you must keep a note of spam complaints. Also, keep in mind that if you get a spam-compliant rate of 0.01% then it is quite good whereas 0.05% is wrong for your business. To calculate this, you can use the formula- Divide the number of complaints you received by the total number of emails sent. The number you get, multiply it by 100 and you have got your answer.

    Unique Click Rate

    There are a lot of email metrics which include click rates from various sections and a unique click rate is one of them. the total number of unique recipient email clicks divided by the number of emails delivered in the campaign is what the unique click rate defines. For example, suppose you have sent three links in an email to someone. If the person clicks on all three then he scores you three clicks with one unique click. Moreover, a higher unique click rate implies to clear CTR which is good.

    Domain Open Rate

    This type of rate ensures the number of people who showed interest in your emails under a particular email provider. This metric is super useful as it will help you to any issues happening due to any domain’s spam filter. Therefore, all you have to do is to calculate the average click rate among the providers and then compare it with other individual providers and that is how this Domain Click Rate works.

    Engagement Rate

    Another important metric in email marketing is the engagement rate. This means tracking when and how much does your customers engage with your email marketing campaign. This enables you to know the time and days when your emails are receiving a maximum reaction from your customers. Therefore, it will help you to know the right time to send the right emails to the right people.


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    Unsubscribe Rate

    When you are running a campaign, of course, you don’t want the people to unsubscribe from your marketing campaign in the middle. The number of unsubscribes is a huge element of weakness and also a motivation. Well, a higher rate of unsubscribes has always been a turn-off. On the positive side, this makes a good impression on customers about your brand as you are giving the customers the opportunity to subscribe to or unsubscribe to the emails of their own choice.

    This email marketing strategy convinces your customers to have faith in your marketing strategy and the way you treat them. It is an extremely important metric of email marketing that you can check easily on your metrics dashboard.

    Conclusion

    Therefore the above-mentioned are the top email marketing metrics every email marketer focus on to get success. All these can bring a huge positive change to your metrics dashboard. Email marketing does hold a lot of power in bringing change in the technical world. Therefore you need to memorize and work on the best metrics or strategies to manage your email marketing.

    FAQs

    What is email marketing?

    Email marketing is a marketing technique in which emails are sent for commercial purposes to target specific customers.

    What is the most important metrics in email marketing?

    The following are the most important metrics in email marketing:

    • Conversion Rate
    • Open Rate
    • Click-through Rate
    • Bounce Rate
    • Number of Unsubscribes
    • Domain Open Rate
    • ROI

    What is the most common marketing metric?

    The most common and important marketing metric is Return on Investment (ROI). This is the most common as it ultimately determines the success and failure of the efforts one is putting into their marketing strategies.

  • How to Calculate Valuation of Your Startup?

    In the competitive entrepreneurship world today, entrepreneurs are quite excited about adding value to their startups. It is one of the most essential things to do for founders as it helps in further equity and funding decisions. Quantifying the worth of a startup is the most complex task to do. There are several methodologies and approaches to determine the valuation of your startup. The worth of a startup depends on several factors:

    • The business idea of the Startup
    • Stage of the startup
    • Product Prototype
    • Market risks and competition
    • Technical Adaptability
    • Customer traction
    • Investors

    Let’s know about the approaches used by startup founders and entrepreneurs on how to calculate the valuation of your startup.

    Mehul Sharma – Founder & CEO, Signum Hotels & Resorts

    Mehul Sharma - Founder & CEO, Signum Hotels & Resorts
    Mehul Sharma – Founder & CEO, Signum Hotels & Resorts

    Pre-revenue start-up valuation may be a complicated endeavour. There are many factors to take into consideration, from the control group and marketplace traits to the call for the product and the advertising dangers involved. And a hard truth associated is that even after comparing everything, despite the only pre-revenue valuation formula, the first level you may get continues to be simply an ESTIMATE!

    The world of the start-up is a place full of enthusiasts. A start-up is initiated every 3 seconds around the world! Every big company you can think of started from a garage with a computer bought with savings money or some sort of gift. But not all start-ups share the same start.

    Business proprietors will wish for an excessive valuation, while pre-revenue investors might opt for a lower price that guarantees a larger go back on investment (ROI).

    So, how does pre-revenue start-up valuation evaluate with a mature commercial enterprise valuation?

    Unlike early-stage start-ups, a mature publicly-indexed commercial enterprise will have extra information and figures to head on. Regular circulation of sales and monetary statistics make it less difficult to calculate the price of the commercial enterprise. More often than not, early-stage startups are valued somewhere within the middle, which means founders don’t get quite the amount they anticipated, and investors pay higher than what they intended to invest.

    For most start-ups especially pre-revenue, Traction is one of the significant indicators for assessing the worth. The true story of a start-up can be brought into the daylight by taking a look at its effectiveness in the market, the number of users, and its growth rate.

    Estimating the actual worth of an unlisted startup before the seed funding is actually of equal importance to having a business idea while going in.

    There are various ways to estimate the current worth of a business, but only a few are used as a daily pill by entrepreneurs.

    The most basic method to assess the value is by analyzing the previous year’s Balance sheet. Under this method, the total debt and liabilities are subtracted from the aggregate value of assets owned by the business. This method is less complicated, easy to assess, and comes in handy.

    Although, the Balance sheet method does not provide the whole picture of the situation. The problem here is that this methodology considers the start-up in its current state and not how it’ll be in the future. Investors are inquisitive about the latter, and so, as an asset-based valuation doesn’t take that into account, this method has its drawbacks.

    Another method of assessing the valuation of a business is by calculating the EPS (Earnings Per Share). EPS is calculated by subtracting the Preferred dividends from the Net income and further dividing it by the average of outstanding common shares. For an individual investor, EPS shows the exact value of revenues and makes more sense.

    The valuation of a start-up is a complex task and there is no straight jacket solution or method to be put into use each time. Often, the valuation is calculated using a combination of ratios, and ordinal values.

    The angel capitalist Dave Berkus believes investors ought to be ready to envision the corporate breaking of $20M in 5 years. His technique assesses five important aspects of a start-up, namely, Concept, Prototype, Quality Management, Connections, and Launch plan. The Berkus technique is an easy estimation, typically used for IT start-ups. It is a good way to gauge value, however, because the market into account isn’t taken into account, it’s not going to provide the scope that some folks desire.

    Furthermore, a few more methods like EDITBA (Earnings before interest, taxes, depreciation, and amortization), top-line method, and GMV (Gross Merchandise Value) have been proven to provide significance for the estimations.

    EDITBA is another easy-to-use method that provides ordinal values by using the previous financial statements. Varied business segments face varied rates of tax payment based on the industry they fall into.  A business with a higher revenue may have an NPV (Net Present Value) lower than the one with lesser revenues due to the different industries they fall into.

    Another interesting method for assessing the value is the Top Line method, which is a reference to gross figures reported by a company, such as sales or revenue. This method gets the name because these are shown at the top of a company’s income statement and are kept aside for the reporting of revenue and or gross sales.

    GMV method ascertains the gross value of sales in the market. Under this, the gross value of the merchandise is calculated as the Sales price of goods with the number of goods sold. It shall be noticed that GMV is calculated in conjunction with net sales, which takes deductions into account.

    The first-time valuation of a start-up is bound to foresee at least a few mistakes. Hence, while evaluating the value of your start-up two big pitfalls one shall avoid are:

    1. Never assume a valuation is Permanent, i.e., after all, a startup is going to be valued at what investors are willing to speculate in it. Ultimately, it shall be kept in mind that the variables are at play, and perceive that no valuation, high or low, is ever permanent- or maybe even correct with certainty.

    2. A Valuation is never straightforward, i.e., even after getting a pre-revenue start-up valuation you’re happy with, it’s best to debate things in nice detail with potential investors simply to ascertain that everyone is on the same page regarding the way to proceed.

    It is rightly said that only a fool would make peace with the first valuation he gets of his business as there are complexities and human factors involved.


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    Vicky Jain – Founder, uKnowva

    Vicky Jain - Founder, uKnowva
    Vicky Jain – Founder, uKnowva

    Startup valuation is not an exact science. Factors can include the industry, the present market, the team’s credentials, and other forces that might be taken into account. The valuation of a start-up is the measure of how much investors think the company is worth right now. One of the simplest ways to measure the value of a startup is with the scorecard method. By weighing up parameters of success like team experience, competition, the strength of the product, etc.) subjectively, this method enables comparisons between a startup and other “average” startups within the industry and area. If the startup looks to have more than average qualities as per the calculations, then the chances of getting a higher valuation increases and so does the investment opportunity. There is another method known as the discounted cash flow method that approximates how much flow of cash a startup will produce over a long period of the term. By predicting this and calculating the expected return on the rate of investment, assumptions can be made about a start-up’s value.

    Sharan Goyal – Founder and Director, Crozzo

    Sharan Goyal - Founder and Director, Crozzo
    Sharan Goyal – Founder and Director, Crozzo

    Valuation in today’s day and age has taken a very sinister meaning. Valuations are through the roof, with no stopping in sight. I prefer to find a reasonable multiple of EBITDA or revenue (in the case of a cash flow negative company) and compare that to that of an existing business which has raised funds at a particular multiple. For example, a D2C business in the food space with a solid distribution network is often valued at 15-20 times forward revenue. It would be fair to assume that a company with a similar profile can be valued at a similar multiple.