Easing single brand retail rules to lure Apple, Oneplus, others: ICEA

NEW DELHI: Indian handset association has welcomed the government’s decision to reform existing Single Brand Retail Trade (SBRT) rules which will now paved the way for establishment of iconic brands by global brands such as Apple, One Plus, Oppo, Vivo among others.

Commerce minister Piyush Goyal said Wednesday that the government had relaxed rules for foreign direct investment (FDI) for single brand retail under which definition of 30% domestic sourcing has been expanded to include exports from third party manufacturers. This in turn will help foreign handset makers operating in India to meet the requirements easily and open retail stores that they would own completely and operate.

The new rules will usher in significant growth of handset demand and better customer experience, the India Cellular & Electronics Association (ICEA) said.


“This has been a proven fact globally that SBRT stores are primarily meant as a brand-building exercise for major brands to accentuate product quality and endurance and this in no way affects the brick and mortar stores or the existing retail business,” said ICEA chairman Pankaj Mohindroo.

“Empirically, studies have shown that the existence of SBRT stores enhances customer experience and satisfaction and they, in turn, catalyze the growth of product demand”, he added.

India’s smartphone industry is expected to witness a surge in turnover during the next four to five years, with the domestic market demand expected to surge from the current US$25 billion to US$80 billion by 2025, as per National Policy on Electronics (NPE), 2019.

In sync with the “Digital India” mission of government, the new rules make it critical for iconic stores to be set up to deliver a retailing environment parallel to the best in the world, the association added.