China’s Gome set to open in India

1 min readAug 14, 20189:10 AM

Chinese electronics retailer Gome is to expand into India.

The move will involve opening a manufacturing centre in India in order to sell its locally made branded products on the Indian market, which will include appliances, smartphones, and televisions to be sold through multi-brand outlets and online.

It has already revealed plans to launch three competitively priced smartphones to catch the upcoming festive season in the target region.

The new firm will be a wholly owned subsidiary of Gome Telecom Equipment, which is part of Hong Kong’s Gome Retail Holdings. Gome Group’s headquarters are based in Beijing.

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What this means

Gome’s strategy to establish a wholly-owned subsidiary and local manufacturing in India is a calculated move to mitigate import tariffs and gain competitive pricing. Unlike JD.com's proposed foreign investment that faces regulatory hurdles, Gome's direct manufacturing approach could offer greater agility. This positions Gome to pressure existing players in India's booming electronics market, particularly local brands and those relying on imports, by offering competitively priced products. The risk lies in scaling manufacturing and distribution quickly enough to capitalise on the festive season. Success would validate Gome's asset-heavy market entry, challenging rivals who opt for lighter partnership models like Alo Yoga with Tmall. We watch Gome’s market share in the Indian smartphone sector next festive season.

Rajiv Menon

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