Franchise Policy/ Parameters
01. What is the
offer?
A wonderful
opportunity for partnership with India’s largest chain of retail store dealing
in high quality authentic traditional design handicrafts / handloom products
from all over India. Further, the company is wholly owned by Govt. of
India.
02. CCIC’s profile
and background.
CCIC is in the retail
business of fine Indian Handicrafts and Handlooms products since 1952. It
operates retail showrooms (stores) in New Delhi, Kolkata, Bangalore,
Chennai, Secunderabad, Patna, Varanasi (Airport & TFC Craft Museum) and Kevedia (Gujarat) .
CCIC has a manpower
strength of 229 employees. It has a supplier base of around 5,300 artisans,
craftsperson, weavers from all over the country. The price competitiveness of
CCIC is achieved by sourcing its merchandise directly from the supplier
group.
CCIC showrooms are
frequently visited by Indian domestic customers as well as foreign tourists
visiting India. Further, CCIC showrooms are also visited by dignitaries,
delegates of Govt. delegations, diplomats, Heads of States of various countries
etc. A visit to CCIC showroom is always included in the itinerary of any
tourist group visiting the country.
CCIC maintains a
range of high quality, authentic Indian handicrafts products and the showrooms
serve as a show window for showcasing the best Indian handicraft and handloom
products from all over the country. The goodwill and brand image of CCIC has
been achieved through its sheer hard work for leadership in its field of
operation.
03. Whom to
contact?
For any further
information, please contact Shri Manoj Lal Managing Director, CCIC of India Limited, Jawahar Vyapar Bhawan,
Janpath, New Delhi – 110 001, Tel. No. 91-11-2332 3825
04. What is Ratio of
Sales to stock in CCIC retail stores?
CCIC deals in
Handicrafts / handlooms products. It has been observed that historically, CCIC
has been able to operate its business with a turnover of three times the
average inventory carried by it during a financial year.
05. What is the look
of the store?
The main showroom of
CCIC in New Delhi is housed in a complex specially designed for the purpose.
The showroom is distributed in several levels : three on the east side and thee
on the west side. One can have a complete view of the entire showroom from the
upper levels. CCIC merchandise has been divided into 25 product groups. 3 to 4
related product groups have been laid in each level of the showroom.
The entrance of the
showroom is a grandeur atrium wherein the best of the handicraft items have
been displayed.
The sales invoices
(cash-memos) for the purchases made by customers are computer generated at a
number of convenient locations. The customers can pay at one go in any of the
4/5 cash counters and pick up the delivery of their products at one go near the
exit door.
CCIC has facility to
accept payments in cash (INR), credit cards and Traveller cheques. CCIC also
has a packing shipping facility for home delivery of items purchased by its
customers all over the world.
06. What is the
minimum area required for a CCIC retail showroom?
There is no fixed
minimum / maximum requirement of space for undertaking franchise operation of
CCIC. However, CCIC recommends a minimum of 5,000 Sq. Ft (500 Sq. Mtrs), of
selling space so that a comprehensive range of Indian Handicrafts and Handloom
products may be displayed so that the customers have a complete feeling.
07. What is the
expected sales / Profit in a CCIC Franchise showroom?
The sales in the new
showroom shall depend upon a number of factors such as its location, sales
area, customer footfalls, profiles of customers etc. However, it is expected
that the sales per Sq. Ft. should be around US$ 1,000 per annum.
08. What is cost of
fixtures per Sq. Ft.
With a view to
creating a traditional Indian ambience CCIC shall provide the specification for
interiors of the proposed CCIC showroom. The franchisee may get the same
executed as per his choice within his budget allocation.
09. What will be the
design of / display / of store?
The layout of the
store can be worked out as per space availability. Ideally, the entrance should
have a large space for putting on display large size stone craft, bronzes,
brass statues etc. The showroom can open with large areas for wood, brassware
kinds of items, In contrast colourful Indian Textiles can be showcased on one
side. CCIC has a design cell with qualified and experienced interior designers
who can work on the available space and provide an initial plan, which can be
fine tuned later on.
10. Is there a
business plan / Project Report?
This can be worked
out be the franchisee based on the showroom space proposed to be committed for
the franchise operations. The prevailing rates of rental for such space, rates
of electricity, waters, communication expenses and salaries / wages for sales
staff and management of the showroom. Further, the location of the showroom and
clientele will give a clue to the likely sales volumes. A growth rate of 15-20
% can be assumed for subsequent years. CCIC can also facilitate such a working
by providing its expertise.
11. Who will
undertake advertisement / Publicity of the franchise store?
CCIC in all its
publicity material national as well as international will include the name
location details of the franchise showroom. The franchisee will undertake
publicity / advertisement of franchise showroom in the local media. CCIC,
however, will provide limited copies of its promotional material, product
catalogue, brochures etc. CCIC shall also provide art works of the publicity
material made by it for use by the franchisee.
12. What are the
products / product range details?
CCIC deals in
handicraft / handloom products from all over the country. These products are
ethnic, traditional weaves and designs. Sarees, Dress Fabrics, hand embroidered
shawls and stoles, ready-to-wear for men, women and children, wool and silk
carpets, hand crafted furniture, wood, brassware, bronzes, art objects, Home
Furnishing, Table Linen, Bed Spreads, Accessories, Bags, lamps and lamp shades,
Indian Teas, Candles, Herbal & Perfumes items, Pottery, Marble, etc.
13. What happens to
goods that are received in damaged condition?
All shipments sent by
CCIC are fully insured against all losses including breakages / damages. In
case some articles in a shipment are received in a damaged condition, the
franchisee may call the insurance agency for a survey and claim compensation
for the value.
14. Is there any
ceiling with respect to fixing the Selling Price?
CCIC shall order
specially the merchandise required by the franchisee. For this purpose, CCIC
shall charge a fixed percentage of gross margin on the merchandise. This margin
is primarily to cover the cost of procurement such as travel costs, TA/DA of
officials visiting craft centres in various parts of the country, inland taxes
in India, packing, forwarding and other expenses. This also includes a
component representing CCIC’s profits.
The franchisee may
work out his own selling price as per prevailing market conditions and based on
the concept of ‘what the market can bear’.
15. Who will make the
selection of goods?
CCIC or franchisee?
There is no compulsion of buying the goods as per selection of CCIC alone. The
choice of merchandise shall be done mutually by CCIC and franchisee.
16. How the payments
will be made?
CCIC is a Govt. of
India undertaking under Ministry of Textiles, Govt. of India. As a Govt.
institution, all sales of merchandise shall be only against receipt of full
payment either in advance, bank transfer or irrevocable Letter of Credit.
17. What will be the
branding?
In whose brand name the store
will be run? CCIC, under its overseas franchise policy allows use of its logo,
brand name and goodwill by the franchisee in their retail outlet. CCIC shall
also charge a percentage of the value of sales as Royalty for the use of its
logo, brand name and goodwill and trademark by the franchisee.
