China-based consumer goods manufacturer Lenovo has applied for single-brand retail licence in India, which will allow the company to own and run showrooms in the country.
The announcement was made on the sidelines of Lenovo’s recent smartphone launch event. Lenovo India declared that the total earnings from mobile sales for the year ended March 31, 2016 stood at $1.3 billion; almost twice the sales achieved in the previous fiscal.
In a statement to the media, Sudhir Mathur, director for the mobile business group at Lenovo’s Indian operation said that sales have been growing at a healthy pace in India and the company expects to maintain the flow during the current fiscal.
At present, Lenovo’s smartphones and laptops can only be bought through online and regular outlets; however, opening official Stores will allow the company to effectively cut out middlemen.
According to the media reports, besides applying for the single-brand retail license, the company has applied for e-commerce business in the country. This, however, makes it a necessity for the company to sell 30 per cent locally sourced goods in the country under foreign investment norms.
To fulfil this requisite, the company is planning to introduce eight-nine smartphones in India over the coming months. Thus, expects to grow 30 per cent this year.
Other companies, including Apple and LeEco have also applied for the single-brand retail license in India.
