Chinese mobile handset manufacturer Xiaomi is likely to soon procure licence to operate its own branded outlets in India. This is in line with company’s strategy to to increase its offline distribution in coming years.
Company’s India Head Manu Jain said Xiaomi had applied to the government of India for single brand retail licence under the category of cutting edge technology in March-April last year and expects to get the licence in a few months from now.
“Our application is pending with the government. What we understand is that it has been approved by Department of Industrial Policy and Promotion, but finance ministry and others still have to clear it,” said Manu Jain.
“We are supplying all necessary documents to the government. We are hopeful that we will get it some time soon, not 100% sure of the timeframe, but hope to get it soon. We have told the government that majority of phones being sold in Indian market are being manufactured here, it is meeting the 30 per cent local sourcing norm for the licence,” he further explained.
Jain further explained that the single-brand store will be part of the company’s marketing strategy to increase offline presence in India along with online market having a share of 30%.
He said to meet the cost-effectiveness parameter in offline sales, the company will adopt the Direct to Retail model to cut down on layers of wholesalers.