Global sports brands, Puma and Adidas aim to be among the first major foreign brands to set up their own ecommerce operations in India, after applying to the Department of Industrial Policy & Promotion (DIPP) for the necessary clearance.
Last year, Adidas had spoken of its omni-channel ambitions. Puma is also looking to expand rapidly. It is hoped this will create more job opportunities.
Single brand foreign companies can now sell through:
“It has been decided that a manufacturer will be permitted to sell its product through wholesale and/or retail, including through e-commerce without government approval,” the DIPP had said.
The new FDI rule allows single-brand overseas players to conduct online selling of their goods for the first time. The rule came into affect in November 2015, as foreign companies requested greater clarity. The new rule will help single brand retailers improve areas such as logistics, replenishing stock and procuring goods.
“Based on the new regulation on single-brand retail, we have sought approval for Puma Sports India to do retail and e-commerce. The same entity was originally allowed to do wholesale of Puma products. It’s a very progressive approach from the government. Once our approval comes through, it will make business much smoother for us,” stated Abhishek Ganguly, managing director of Puma India.
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