Apple, has been since few years in a complete juggernaut when it comes to launching new Retail Stores. However India which is also a major market in the South East Asian Sub Continent is not having even a single Apple Retail Store.
The major reason behind Apple, which is in many cases known to have a large number of retail stores, is not having a single Retail Store in India which is due an important rule by Indian Governments which does not allow foreign companies to have full ownership of their local ventures.
This is the major turn off factor for companies like WalMart, 7/11 and Apple for not having a retail store. Recently the Indian Government in a new ruling has allowed “full ownership of single-brand retail stores by foreign companies.” Not surprisingly, Apple and many other foreign companies are now looking forward to enter into the Indian Market.
However not having a retail store does not mean the Apple products are not available there. There are currently many retail stores like Imagine and iStore which sell iDevices.
A government official said that Indian doors are now open for foreign comanies
The government last week notified the single-brand retail policy, allowing 100% FDI in single-brand retail trading and consequently set the stage for global retail firms to roll out investments to open fully-owned stores in India. The move freed up the 51% limit that had been in place.
However, proposals involving FDI beyond 51% will have to mandatorily source at least 30% of the total value of the products sold from Indian small industries, village and cottage industries, and artisans and craftsmen.
When asked whether the 30% local sourcing clause will be a hindrance, the DIPP official said, “Let Apple finalize its business plan and the investment it wants to make. If they tell us that the 30% sourcing is a problem, at that stage we will look into it,” he said.
Now it will be interesting to see how Apple, which is usually known and blamed to price their product at a higher range fares in the Indian Market in which price is the most important and determining factor. Apple, is also having good sales figures in India locally but opening up retail chains and selling massive numbers will need some real good tactics. We are waiting for an official statement by Apple.
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