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'100% FDI in single-brand retail to help Apple, Chinese cos'

Press Trust of India  |  New Delhi 

Tech giant and Chinese like and could turn out to be big beneficiaries of allowing 100 per cent in single under automatic route, say analysts.

Setting up own stores helps brands offer closer engagement with customers, something that will come handy for these global giants seeking to woo customers in the hyper- competitive Indian handset industry.

According to Counterpoint Research Associate Director Tarun Pathak, Chinese players as well as companies like have engaged with customers through multi-brand outlets.

"With their own stores, they can manage the end-to-end experience for the customers," he told

While the move itself is a positive for like Apple, pricing of devices will play a crucial role in the success of the brand in the Indian market, Pathak said.

Apple, which plays in the premium category, has its own stores across major cities in the world, including in markets like the US, Australia, China, and Hong Kong.

Anshul Gupta, at Gartner India, said that the latest decision "removes systemic friction and will allow global brands to speed up investment to begin operations sooner".

"Easing of norms will definitely excite global brands to enter into to tap the vast consumer market," he added.

Last year, Mobiles had received the nod to undertake SBRT (single trading) of brand, in addition to existing of wholesale.

An industry watcher said many Chinese companies have set up their own stores in as well that drive strong sales for these brands.

He added that Chinese companies like and would hope for a similar outcome in as well.

Till date, 49 per cent was allowed under automatic route, while beyond that approval was required.

"It has now been decided to permit 100 per cent under automatic route for SBRT (single trading)," the said in a statement.

As part of changes in FDI norms in the SBRT, the government has also relaxed mandatory local sourcing requirement of 30 per cent, which has been a long standing demand from foreign brands.

Under the relaxed norms, a foreign retailer will be able to get credit from incremental increase in sourcing for its global operations from India towards the mandatory 30 per cent local sourcing requirement for its in the country.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 10 2018. 20:45 IST