Gionee is one of the very few Chinese phone makers that decided to strengthen its offline presence in India at a time when most of the other entrants in the market were trying to appease the online market. Now it seems that Gionee is planning to apply for a single-brand license in the country after the rules for applying was recently simplified.
Now the company doesn’t need to satisfy the 30% local sourcing condition, a rule that applied to companies investing more than 51% equity for the single-brand retail segment. Further, the relaxation of the rules also meant that the single-brand licence holders could sell products on their own online platforms.
As of now, Gionee has been selling the phones via multibrand showrooms and the usual brick and mortar shops which form an important part in the Gionee’s retail chain. It is also worth noting that Apple has also applied for a similar licence with the Department of Industrial Promotion and Policy (DIPP) recently. Gionee is also mulling to increase its franchise outlets to 100 by March of this year and 250 by December of this year, according to Arvind Vohra, head of Gionee India.
The company is also planning to ramp up its after sales efforts by opening 200 exclusive service centers in India. As we mentioned earlier, Gionee has one of the best offline retail chains we have come across, it in fact even caters for last mile customers even in remote villages, and this is where Gionee makes the cut. That being said, the Shenzen based company has been making some efforts to create an online presence lately.
Vohra further said that “Fundamentally, I believe that first we have to create our brand by focusing on offline rather than online.” This ideology seems to be working well with Gionee which is planning to manufacture all of its phones in its new manufacturing facility commissioned to Foxconn. On a not so brighter side, the introduction of exclusive stores be it the Apple or the Gionee will affect the current franchisee adversely.