New Delhi: Chilli Beans, a Brazilian sunglasses brand that is known to be the second largest in the segment has signed FranGlobal, the international arm of Franchise India as their franchise advisor. Through this association, FranGlobal will facilitate Chilli Beans to scout for partners who are existing operators selling Indian and international eyewear brands in different Indian cities.
Incepted in 1998, the brand was a brainchild of a musician turned entrepreneur Caito Maia. Specializing in sunglasses and accessories, the brand became widely known for its spicy, fashionable attitude. The brand grew in a fashionable speed, quickly resulting in 850 stores worldwide, becoming the largest accessories franchise in Latin America, with locations in Brazil, Colombia, Mexico, Peru and Bolivia, Europe (Portugal), Asia (Kuwait and Thailand) and North America (United States). To catch up on the evolving fashion trend on a daily basis, the brand launches original styles of sunglasses, watches and optical frames every week.
With a current size of USD 7.4 billion, the Indian eyewear market is expected to grow at a CAGR of over 9% to reach USD 13.6 billion by 2024. Presently, the Indian eyewear market is dominated by an unorganized segment that accounts for nearly 80% of the overall market. Though the organized share of the market is growing at a much faster pace of over 15% CAGR. This trend is driven by Indians who are gradually becoming more conscious about their personality and overall look. The eyewear category in India is slowly shifting from being a mere visual necessity to a fashion accessory.
Chilli Beans through this venture want to tap on the USD 5.4 billion spectacle market and USD 1.1 billion sunglasses market; that is expanding at a very fast rate. From 2017-18, India imported USD 153 million worth of eyewear, the majority of it being from China. With Indians owning to high disposable income and personalization in eyewear category becoming a millennial need, this in return will be the driving force for Chilli Beans success story.
During the initial phase, Chilli Beans will be targeting 10 metro cities in India stores being positioned at prime and priority locations. Through franchising and multiple area developers backed by optimized operations, the brand is aiming to open at least 100 stores every year. The stores will be mostly located in an airport, premium mall, and leading high streets.
The franchise model chosen for India is Franchise-owned-Franchise-operated which will be backed by consistent product supplies & marketing support. The store size required to open an outlet would be a minimum of 400-500sqft. An average investment per sqm (store fit-out + equipment) tentatively would be around INR 30,000 / US$ 400 with an average franchise fee between INR 2-3 lacs/ US$ 2500-4000. The product margin which one can expect from the brand is between 25-30%.
A regional master franchisee would have rights on exclusive region allocation and sub-franchise post-1-own/operational store. The franchisee would be responsible to open a minimum of 50 stores with a typical size of 650 sqft and a unit investment of US$ 75,000. The key role that a master franchisee will hold would be warehouse deployment, local marketing, development obligations, liaison between unit franchisee and brand, share local marketing intelligence with the brand on product/promotions/pricing/places/people, and corporate team to support the unit franchise network.
Caito Maia, CEO, Chilli Beans said, “The burgeoning eyewear market in India will act as a boon for our brand. We are expecting to open 200 stores in 5 years which will be located at major metros like Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata followed by Ahmedabad, Chandigarh, Indore, and Kochi amongst others. Our legacy, affordable range, out-of-the-world design, and cutting-edge technology will help us to stand out from the other competitors in the market. We are certain that in no time we will be one of the known names in the eyewear category in India. To achieve this, we have collaborated with the best in the franchise advising business. We are confident that through their consultation, we will achieve what we are aiming for.”
Commenting on the association, Venus Barak, CEO, FranGlobal said,” I am extremely elated for bringing such a renowned fashion accessory brand to India. We are certain that their designs, pricing and keeping-up with the trend; will act as critical factors for enticing the Indian shoppers.”
Adding to this conversation Gaurav Marya, Chairman, Franchise India Group said, “India has immense scope for luxury eyewear. Gradually, the eyewear market in India has become more consumer-oriented and sunglasses have become a necessity than a luxury. People have started aligning their eyewear with their dresses. With the social media and influencer category booming in India, people have been exposed to changing fashion trends which forces them to buy new designs to keep up with the style. This has resulted in a huge spike in sales in the eyewear category. In the coming future, we are expecting this sector to boom phenomenally.”
Currently, Chilli Beans has more than 850 stores worldwide and has its presence in 9 countries. Through this partnership, they are aiming to mark their presence in a growing economic market which is India.