Expanding an International Franchise Chain in India
SmartyKids, one of Europe’s largest franchise chains of Abacus-based learning, with a presence in 8 countries and over 350+ centers, sought to expand its network in India through Franchise Development.
Why India?
India’s population surpasses 1.3 billion, with 580 million young people aged 5-24, establishing a vast education market comprising over 250 million students. Early research indicated a burgeoning market for Abacus learning in India, showing significant potential for future growth. With initiatives aimed at enhancing enrollment and impending regulatory reforms, India presents substantial opportunities for investors in its thriving education sector, prompting SmartyKids to choose India for their business expansion. Moreover, the Indian government’s focus on improving educational standards and digital literacy aligns seamlessly with SmartyKids’ mission to deliver innovative and effective learning solutions. These factors collectively position India as a strategic destination for SmartyKids’ expansion of its abacus-based learning franchise network.
The Launch & the Dilemma!
In November 2022, SmartyKids embarked on its entry into the Indian market through a strategic partnership with IME, their trusted business development ally. This collaboration aimed to replicate SmartyKids’ successful European model within India’s diverse and fiercely competitive educational landscape. The journey into the Indian market presented numerous challenges, including understanding the varied cultural and educational terrain, adapting programs to meet local standards, and establishing a robust distribution and support network. Anticipating the competitive nature of the Indian education sector, which features a multitude of local and international players offering diverse educational services, standing out necessitates a unique value proposition and effective marketing strategies.
Despite extensive research and deliberation, a fundamental question lingers: Can SmartyKids establish a foothold in India? Will Indian consumers embrace a European brand specializing in abacus-based learning?
Only time will unveil the answer.
“IME has been instrumental in supporting our market entry by providing valuable insights into the local market, helping us forge strategic partnerships, and offering guidance on compliance with local regulations. Their on-ground expertise and network have enabled us to tailor our approach to better suit the needs of Indian students and parents.” – Dayan Ilieva (Sales Manager – SmartyKids)
IME's Bold Tactics Propel SmartyKids in India
IME’s approach focused on devising tailored strategies to overcome entry barriers into the market. The team grappled with critical challenges: identifying SmartyKids’ target audience, formulating the right business model for India, and securing the first deal.
Their determination drove them to engage in extensive discussions with over 2,000 prospects, meticulously exploring market gaps. Ultimately, they successfully crafted an initial model tailored to the Indian market, complete with a customized pricing strategy.
With the product specifically designed for India, outreach efforts commenced from the mid of 2023.
The Hunt for the 1st Deal!
It’s often said that the first step is the toughest. Despite intensive lead generation and a comprehensive business development approach, the team struggled to secure their initial deal. They faced significant challenges:
- Overcoming skepticism due to the unfamiliarity with SmartyKids brand.
- No presence of SmartyKids in Southeast Asian nations.
- Lack of past successes or references in India hindered trust-building efforts.
Crossing this initial hurdle was pivotal in surmounting these challenges and establishing a presence in the Indian market.
Finally, perseverance paid off for the team. Six months after the launch, they secured their first deal. This success acted as a catalyst, leading to one deal per month thereafter. From that point on, there was no turning back.
Overcoming Setbacks: Scaling Up with SmartyKids' Value Propositions
At one juncture, the team recognized a slowdown in progress. Despite doing everything right and gaining credibility, they questioned where improvements were needed.
Returning to the drawing board, they meticulously assessed possibilities and devised significant enhancements tailored for the Indian market. Equipped with invaluable audience insights, the team launched a groundbreaking book model with a ZERO franchise cost and ZERO Royalty framework, a pioneering concept in India. These books are published by Thomson Press, Asia’s largest printing press under the India Today group. They integrate innovative features like gamification and augmented reality, marking a novel approach in the Indian market. Additionally, they customized the franchise model to align with local market dynamics and educational needs, ensuring it resonated effectively.
Boom! These additions sparked positive responses, leading to the closure of 6 deals in the past two months alone.
Achieving Significant Milestones
SmartyKids’ extensive presence in multiple countries brought global expertise to the Indian market.
- Successful expansion of SmartyKids’ franchise network across India via 34 centers.
- Recruitment and onboarding of unit franchisees who adhere to the brand’s standards in 18 cities of India.
One standout achievement was a SmartyKids partner in Ahmedabad enrolling over 100 students within thefirst month of launch. This success underscored the efficacy of IME’s comprehensive support in driving operational excellence and market expansion
Conclusion :
IME continues to play a pivotal role in SmartyKids’ growth trajectory in India by providing ongoing strategic support and innovative solutions. As SmartyKids expands its footprint and influence across the country, IME remains dedicated to promoting educational excellence and transforming learning into an exciting journey for children.
Contact us today to explore how IME can empower your educational franchise to thrive in India’s vibrant educational market. Together, let’s embark on a transformative journey of educational success.
India Market Entry (IME) is a boutique consulting firm specialising in assisting global education stakeholders to navigate India’s vibrant education sector. IME’s core competency is strategic business development.
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