The Indian Government’s announcement of the new Consolidated Foreign Direct Investment (FDI) Policy effective from August 28, 2019, presents a huge online store as well as brick and mortar store opening opportunity for Apple Inc, suggest media reports.
This FDI policy was announced to invite 100% foreign direct investments in India to boost the sagging economic sentiments among investors from abroad. Just the other day, even as the country’s leading Reserve Bank of India provided much-needed liquidity in the form of dividend worth INR 1.76 Trillion, pegging its economy.
New FDI Policy Encourages 100% FDI in Single Brand Retail By Companies Like Apple
Thus, the new Single Brand Product Retail Trading Policy means 100% FDI under automatic route is now permitted in the marketplace model of e-commerce. All roads are now open for Apple to launch its online store, which it can very well launch at the earliest, bringing cheers to its India customers and fans alike.
Apple currently has a very low-key presence in India, which is considered the world’s fastest-growing smartphone market. In a marketplace led by the likes of Samsung, Realme, Vivo, Oppo, and Lenovo; Apple needed a big heave to make any dent.
Apple entered Indian markets since 2008 and today sells through retailers and online stores like Amazon and Flipkart.
In effect, Apple iPhones have not made much impression on Indian smartphone users there though considered catering only to the premium segment. Its lowest price models compete with the mid-range competitors’ models, with hardly any impact on the premium segment.
Thus, for the last couple of years, Apple has focussed only on the premium India smartphone segment. These efforts paid when it beat its nearest rival Samsung to garner the majority market share as well as revenues with the match-winner model iPhone XR. But, it has a long way to go to command over Indian smartphone space.
Now, with the new policy in place, Apple must strategically act fast for opening online store if they want to make a ‘kill,’ say industry watchers. With its presence in India via retailer stores, but opening self-owned properties will offer a massive opportunity for Apple to lay a firm footprint in the Indian subcontinent.
Apple Following Online Stores Success May Go For Brick & Mortar Avatar in India
While it may be months away from opening the online store, Apple may be more keen to go for the brick and mortar avatar too in time to come. It will try to make India, its next big ‘home’ market envisaging huge commercial gains.
Maybe, this could be the turning point besides its ‘Make in India’ dreams also being powered with its contractors Foxconn, Wistron, and Pegatron with their manufacturing facilities in Bangalore and Chennai.
They are not only catering to the domestic market but have also started exports of iPhones from India earning precious foreign exchange for the country.
Finally, with each foot in the ‘right’ Indian smartphone marketplace, Apple should seize this right opportunity and make its mark in the burgeoning economic engine of the world, so-called, at least for the present.
Will Apple say ‘Namaste India,’ soon?
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