Asia has been Apple's main expansion market in recent years. But not in all Asian countries the expansion is having the same results. Regardless of the purchasing power of some countries or others that condition a greater or lesser development of the points of sale, we find the bureaucratic obstacles and in some cases, even fraud.
This is the case of China, which we know today. Between 2015 and 2016, the apple company opened 30 stores in the Asian giant. Instead, this figure in 2017 amounted to only 5 stores. Let's see the reasons for this decline.
In an article of Wayne Me for the diary The Information, the results of a study that evidences the reasons for this slowdown at the opening of Apple retail stores. The main reasons are the huge bureaucracy that has affected this nation for several decades and prevent a rapid importation of foreign products, as well as product resellers and fraud to obtain Apple products or parts. For the realization of this report, we have had the testimonials from 17 former Apple employees.
In the report, in relation to the government bureaucracy, it is indicated:
Apple had to navigate a maze of government bureaucracy to obtain everything from business and tax licenses to building, fire, and customs permits for imported building materials, according to former employees. The regulatory framework in China is much more complicated than in the US, with many more levels of government, and it is much more opaque. Employees were often quick to pursue permits and local approvals to keep store openings on track.
Regarding resellers:
Apple also had to contend with resellers, known as "yellow cows" in colloquial Chinese. These resellers filled their stores and left other customers out during product launches. Apple executives were concerned that they were losing control of the customer experience in their stores and, along with it, opportunities to interact with real consumers. Resellers showed little interest in accessories and add-on services that Apple likes to offer customers.
The result has been verified. Apple drastically slowed its expansion to avoid being involved in problems that divert their attention. But it has redirected its business, to continue to be the third market with the most income, behind the US and Europe.