Google is making a significant move to expand its presence in India by opening its first physical retail stores outside the United States. The tech giant, which has already invested $10 billion in India, aims to follow the retail model that has been highly successful for Apple Inc., which currently operates more than 500 stores globally. Google’s retail strategy is designed to showcase its own products, similar to how Apple has turned its stores into profitable hubs.
Google is in the final stages of selecting locations in India for these stores. The company is considering opening its first outlets in or around New Delhi and Mumbai, which are both key cities for business and technology. The stores are expected to be large, with each spanning around 15,000 square feet, and may take about six more months to open, although the timeline may shift depending on various factors.
Although Bengaluru, known as India’s IT hub, was also a possible location, New Delhi and Mumbai are the primary contenders. Google’s entrance into the Indian retail market is set to target the premium and luxury segments, as it plans to compete with Apple, which currently dominates the high-end smartphone market in the country. If the initial stores are successful, Google will consider expanding its retail presence further.
Currently, Google sells its products like Pixel phones, smartwatches, and earbuds in India through authorized third-party retailers. However, this new retail venture signals a stronger commitment to the Indian market. In 2023, Apple opened its own stores in Mumbai and New Delhi, marking a significant move to sell directly to Indian consumers. Google’s Pixel phones in India range from $370 to $2,000, while Apple’s iPhones are priced between $520 and $2,130. Google has also begun manufacturing Pixel smartphones locally in India.
Research from Counterpoint shows that in 2024, Apple holds a dominant share of about 55% in the Indian market for premium phones (priced above $520), while Google’s Pixel phones have just a 2% share. Despite this, India’s rapidly growing smartphone market, which currently has around 712 million users, presents huge potential for both tech giants.
Google’s plans are progressing, with only a few regulatory and compliance processes remaining before the retail stores can be set up. One location under consideration is in Gurugram, a satellite city near New Delhi that hosts global companies like Uber and Meta, as well as brands like Uniqlo.
However, Google’s journey in India hasn’t been without challenges. The company is facing several regulatory issues, including antitrust cases regarding its in-app billing system and market dominance in the smart TV sector. Additionally, Google recently saw the departure of its head of public policy in India, marking the second such exit in two years, which could impact its relations with the government.
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