Apple will change its distribution model in India


Apple, the smartphone giant, will move to a devoted distribution centres for its products in India for the first time, uniting its logistics operations to guarantee common pricing for offline and online sales and getting greater control over the supply network.

Apple’s worldwide logistics partner DB Schenker will possess and operate the centre, which will come up at Bhiwandi near Mumbai, two senior industry authorities said. DB Schenker, one of Europe’s biggest logistics organization, has consented to an agreement to run the Indian centre, which will help to guarantee that Apple products are rarely sold out at the retail level, as it happened after the launch of the iPhone 7 and 7 Plus in October.

Right now, iPhones, iPads and Mac PCs re brought into India through Chennai, Bengaluru, Mumbai, Chandigarh, New Delhi and Hyderabad – where value-added tax rates differ – and exchanged to distributors from the airport itself.
Online sellers regularly source the gadgets from low-VAT markets, picking up a value advantage over their offline rivals.

“The distribution centre will allow Apple to stock its products adequately, will ease operations and streamline its logistics and supply chains. It will also help in maintaining uniform price for its products, which will become much easier under the Goods and Services Tax regime,” said one of the executives of the company.

Email questions sent to Apple and DB Schenker looking for comment did not evoke any immediate response.

Apple is expanding in India, extending circulation to the smaller cities and working with application developers. The company was the nations’s second-biggest smartphone maker by revenue in 2015-16, pipping local rival Micromax Informatics after sales increased 54% to Rs 9,997 crore.

One industry official said the distribution centre will help Apple provide hardware such as Mac computers tailored to the needs of business customers.

“Earlier, this flexibility was not there. The company is currently reviewing this and any such effort will be for enterprise clients only,” he said. Apple permits customisation just for shoppers who put arranges through its online store, which would require retail remote direct venture endorsement from the legislature. Its retail and online store arrangements are still stuck after the legislature updated its FDI strategy this year.

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Sameeksha Bhardwaj, From ITvoir News Desk