Chinese phone maker Gionee is planning to
apply for a single-brand retail licence, following the easing of rules.
"It is in process," said Arvind Vohra, Gionee India CEO, adding that
the application will be filed with the Department of Industrial Promotion and
Policy (DIPP) in the coming weeks. Apple has applied for a similar.
In November, India scrapped a 30% local sourcing condition for overseas companies seeking to invest more than 51% equity in the single-brand retail segment. It also allowed single-brand licence holders to sell products through their own online platforms.
In November, India scrapped a 30% local sourcing condition for overseas companies seeking to invest more than 51% equity in the single-brand retail segment. It also allowed single-brand licence holders to sell products through their own online platforms.
The Chinese company's products are sold
through multibrand stores and 30 Gionee-branded franchises.
It plans to increase the number of
franchisee outlets to 100 by March and 250 by December, Vohra said. The
Shenzen-based mobile phone maker will also open 200 exclusive service centres
in India.
Even though the company plans to sell its
products through its own ecommerce platform, Vohra said a brick-and mortar
presence was needed for building the brand in India. "Fundamentally, I
believe that first we have to create our brand by focusing on offline rather
than online," Vohra said" . "Online is purely on (discounted) prices
with no marketing, branding and loyalty."
Vohra said India was a key market along
with the home Chinese market and Africa. Vohra said the company may open some
flagship stores and is targeting the top 100 malls in India to open franchisee
stores.
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