Xiaomi is the new applicant in the array of smartphone makers who submit application to open single-brand retail stores in India. Currently, the Chinese smartphone maker sells its products through e-commerce and offline platforms.
Apple is another smartphone brand that submitted a similar application earlier this year. However, its first application missed out a few significant details regarding the investment plans, and the manufacturer resubmitted the form to the Department of Industrial Policy and Promotion (DIPP) recently. Apple currently sells its products through distributors such as Redington and Ingram Micro. Its market share in India is comparatively low. In December 2015, the company sold 80,000 units, which is a new record for the company in India.
This comes as a direct result of Government of India relaxed norms for foreign direct investment (FDI) policy for single-brand retailing. There are also chances that the Government may relax the sourcing norms for entities undertaking single-brand retailing of products having ‘state-of-the-art’ and ‘cutting edge’ technology and where local sourcing is not possible.
At present, 100% FDI is permitted in the sector. However, the companies are required to take FIPB permission, if the limit exceeds 49%.