Apple All Set To Take A Bigger Bite At India Market, Will Sell Directly Through Online First As the government eases rules this puts India as a favourable destination for foreign brands like Apple, Ikea, H&M

By Priyadarshini Patwa

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With an aim to create a manufacturing ecosystem the Cabinet Committee on Economic Affairs relaxed key aspects of the 30% local sourcing rule for foreign direct investment (FDI) in single-brand retail.

In the June quarter, Apple recorded double-digit revenue and this move from the Centre opens a lot of doors giving them ample opportunity to take a bigger bite at the Indian market. The move will now relax direct investment in single-brand retail trade (SBRT).

How does this help Apple? For some time now the US-based smartphone company has been facing stiff competition and sourcing products locally will benefit them in many ways. The rule also allows the single-brand retailer to set up an online store and sell products before going physical.

Apple smartphones have always been something that Indians would like to own. However, the hefty import duty of around 20% on its product makes it beyond the reach of the average consumer. 2018 and 2019 saw a decline in the sales of the phone which led makers to change their marketing strategy leading to great discounts on their latest models.

Admits ongoing trade tension between the US and China, this rule comes as a deal for Apple and will help them boost their growth rate in the Indian Market. For the longest time, the brand has been dependent on China for manufacturing of its item, however, this opens ways for them to build a unit in India.

The company sells its devices via 140 retailer stores in India and will soon start selling iPhone, iPad and Mac book online. This move will work a lot in favour of the brand, considering how online shopping of electronic items has become a huge trend now.

For a while now Foxconn Technology Group— Apple's main partner has been producing a part for them and as per reports have begun tests for the XR series. If everything goes as per plan, soon they will start the mass production of Apple goods.

The brand is also gearing up to open its first store in Mumbai by 2020. This paves way for them to reach to a huge sector of consumer and control their selling and distribution through both online and offline distribution.

Priyadarshini Patwa

Former Features Editor, Entrepreneur India

Priyadarshini Patwa is the Former Features Editors of Entrepreneur India and hosted an Instagram show every Friday named ‘Lighten Up’, about people from different walks of life and talk about their work and beyond. She handled the lifestyle, features, technology, entertainment segments and was also responsible for the Digital Covers. Previously she has worked with MensXP, a Times of India entity and Deccan Chronicle. 

She’s @Priyanka_Patwa on Twitter and @priyadarshinipatwa on Instagram.

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