India has approved Chinese smartphones maker Oppo’s request to open its brick-and-mortar stores in India where Oppo can offer products and services directly to its customers. The company is focusing more on cost savings by selling directly and expanding its wholesale business in India.
India is the world’s third-largest smartphone market after US and China, the world’s 3rd largest Smartphone maker is now joining hands with world’s 3rd largest smartphone market could make a lucky combination for Chinese giant.
Samsung and Apple already have a strong foothold in the Indian market, but the fact is Oppo has great opportunity to grab the market gaps as early as possible with its new strategic move.
Indian authority Foreign Investment Promotion Board (FIPB) has approved Oppo Mobiles India Pvt. Ltd.’s request on Tuesday according to the department’s website.
The authorities have also approved Luxury Brand Retailer Louis Vuitton to get into the Indian market and start selling directly to customers in India.
India’s policy is to allow foreign brands sell directly to customers under “single-brand retail” route, the government also applies some strategic rules over companies interested in doing business in India, foreign companies are required to source 30% of the products locally in India which definitely improves Indian economy as well as industry.
In 2016, India became lenient on 30% sourcing rules and offered 3 years exemption for foreign brands in order to attract more foreign investment in the country. However, 3 years exemption is mutually beneficial for both, Foreign brands get to know the market in three years and have enough time to plan for 30% sourcing after 3 years. India, on the other hand, facilitates foreign companies to grow their business first in India before investing in 30% sourcing which could result in more scalability and industrial growth.