Oppo Mobiles India given nod to open stores
In this article (5)
Oppo Mobiles India has been granted approval to open single-brand retail stores, meaning the Chinese smartphone maker can now sell directly to consumers in addition to its wholesale business.
The Foreign Investment Promotion Board announced the approval on its website, and has also approved luxury goods retailer Louis Vuitton’s application to open its own stores in India.
India allows foreign firms to sell directly to consumers through the “single-brand retail” system, but companies need to source 30 per cent of the products locally. India moved to partially relax those conditions last year, exempting foreign retailers for three years from the 30 per cent local-sourcing rule.
Questions & Answers
Q.What kind of retail stores has Oppo Mobiles India been approved to open?
What kind of retail stores has Oppo Mobiles India been approved to open?
Oppo Mobiles India has been granted approval to open single-brand retail stores. This means the Chinese smartphone maker can now sell directly to consumers, complementing its existing wholesale operations in the country.
Q.What is the general rule for foreign firms selling directly to consumers in India?
What is the general rule for foreign firms selling directly to consumers in India?
Foreign firms selling directly to consumers through India's 'single-brand retail' system typically need to source 30 per cent of their products locally. This rule aims to encourage local manufacturing and support Indian suppliers.
Q.Has any other company received similar approval recently?
Has any other company received similar approval recently?
Yes, alongside Oppo Mobiles India, the Foreign Investment Promotion Board also approved luxury goods retailer Louis Vuitton’s application. This allows Louis Vuitton to open its own stores in India, expanding its direct consumer presence.
Q.Are foreign retailers always required to meet the 30 per cent local-sourcing rule?
Are foreign retailers always required to meet the 30 per cent local-sourcing rule?
No, India partially relaxed these conditions last year. Foreign retailers are currently exempt from the 30 per cent local-sourcing rule for a period of three years, offering a temporary reprieve from the requirement.
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