Apple welcomes PM Modi govt’s Single Brand Retail move, says looking forward to first retail store in India: Centre’s decision to ease the 30 per cent sourcing norm for single-brand retail (SBRT) has come as a much-awaited opportunity for Apple to finally launch its brick-and-mortar outlets in India. Due to India’s local sourcing norms, the Cupertino-based iPhone maker has been depending on franchisees to sell its products in the country. In a statement, Apple said that it’s looking forward to serving its customers in India like it has been serving other Apple customers around the world.
Thanking Prime Minister Narendra Modi, the company said that soon it would be welcoming customers to India’s first Apple retail store. However, the company said that it would take some time to launch its first branded store in the country.
Earlier on Wednesday, Commerce Minister Piyush Goyal said, “all procurements made from India by the SBRT entity for that single brand shall be counted towards local sourcing, irrespective of whether the goods procured are sold in India or exported”.
Undoubtedly, the government is determined to make India a $5 trillion economy in the next five years. The move will definitely bring India a step closer as it would put an artificial restriction on the companies and is out of sync with current market practices.
The government has also directed the brands applying for FDI that in single-brand retail that they would be allowed to start their e-commerce operations before they set up their physical stores in India. The brands have to open their stores in 2 years of initiating their e-commerce operations.
The government have been closely analysing the market behaviour in the country and the rising trend of online shopping has persuaded the government’s move. The move is also likely to benefit players such as IKEA, Uniqlo and H&M.