Xiaomi applies for single-brand retail stores
iPhone and iPad maker Apple has resubmitted its application for opening single-brand retail stores in the country as there were certain gaps in its earlier proposal
New Delhi: iPhone and iPad maker Apple has resubmitted its application for opening single-brand retail stores in the country as there were certain gaps in its earlier proposal.
“The proposal is being processed by the Department of Industrial Policy and Promotion (DIPP). Chinese smartphone maker Xiaomi too has submitted an application,” an official said.
In January, Apple had filed proposal seeking permission for single-brand retailing and sell products online but due to certain gaps in the application, DIPP had sought more information from the US-based technology giant.
According to the sources, the government could exempt the Cupertino-based company from the mandatory local sourcing norm of 30 percent as it makes ‘state-of-the-art’ and ‘cutting edge’ technology products.
Last year, the government had relaxed the foreign direct investment (FDI) policy for single-brand retailing. The government had said it may also 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.
Further, sources said Xiaomi too has submitted an application with the DIPP to open single-brand retail stores in the country. Currently, it sells it’s products through e-commerce and offline platforms.
Single-brand retailers are also allowed to take e-commerce route for such trading. At present, 100% FDI is permitted in the sector but the companies are required to take permission from the Foreign Investment Promotion Board (FIPB) if the limit exceeds 49 percent.
The iPhone-maker sells its products through Apple-owned retail stores in countries including China, Germany, the US, the UK and France. Apple has no wholly-owned store in India and sells products through distributors such as Redington and Ingram Micro.