Bangalore: Apple is likely to set up a distribution center for its products in India through one of its logistic partners, according to a report in The Economic Times. This venture will be one of its kind for Apple in India as it looks at cementing its Retail footprints in the country. The US tech giant will ensure a consolidated logistics operations which will help erase the offline and online price discrepancies.
At present, Apple products are brought to India through different cities; Chennai, Mumbai, Bengaluru, New Delhi, Hyderabad and Chandigarh. Every city has a different value-added tax (VAT) rate, which causes price incongruities when the products are shipped directly from the airport to distributors.
Online retailers in the country on the other hand, source their inventory from low-VAT territories so they can gain a price advantage over brick-and-mortar retailers.
Citing two senior industry officials, the report claims that Apple is looking at to set up a dedicated distribution center in partnership with its logistics provider DB Schenker to set up operations at Bhiwandi near Mumbai. Apple has entrusted DB Schenker, one of Europe’s largest logistics companies, with the job of handling their fastest growing markets.
“The distribution center 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 officials.
Apple CEO, Tim Cook has been ramping up efforts to gain a better position in India and counter the slowing growth of the iPhone and up-heave the sales of iPad and MacBook. In the month of June, the Indian government adopted rules to make it easier for the US firm to open retail stores in the country.
The coming of Google Pixel to India to take the smartphone market share forms a crucial part of its global expansion plans. All these factors form a strong base for Apple to go in for a distribution center and a consolidated logistics operations in the country.