Sony Looking To Set-up Own Stores In India

Due to FDI policies, the company does not manufacture products in the country. It imports products from Japan, Malaysia, China and Thailand.

Japanese electronics company, Sony Corp plans to roll out company-owned stores in India if the government eases the mandatory 30 per cent local sourcing norm for allowing 100 per cent foreign investment in single brand retail, Sony India said.

"Our company-owned stores will be a strong weapon to get into the market and win market share, but with the present sourcing norms it will be a huge challenge," Kenichiro Hibi, managing director, Sony India said.

"Once the retail FDI policy changes, we will review our business plans. The foray would help us to control the distribution of products more efficiently and convince consumers the benefits and technology of Sony products over key competitors," he added.

Back in January, the country had allowed 100 per cent foreign investment in single brand retail with riders such as 30 per cent of the goods must be sourced from small and medium enterprises in the country and the investing company must own the brand.

Sony is the first consumer electronics major to have shown interest to open company-owned stores in the country. But the 30 per cent local sourcing norm is a big deterrent because Sony does not have a manufacturing plant in India, nor does it undertake any significant component sourcing from here.