Google is finalizing locations for its first physical retail stores in India, aiming to boost its presence in this key market where it plans to invest $10 billion. Currently, Google only operates five physical stores in the U.S., and its new locations are expected around New Delhi and Mumbai, each retail space possibly around 15,000 square feet. The company aims to emulate Apple’s successful retail strategy to target the luxury segment. Despite facing significant regulatory challenges in India, Google is committed to enhancing its physical retail presence, aiming to compete with Apple’s dominance in the premium smartphone market.
New Delhi:
Alphabet Inc’s Google is on the verge of finalizing locations in its significant market of India where it plans to establish its first physical retail stores outside the United States, according to three sources who are knowledgeable about the situation.
Google views India as a pivotal growth market, having pledged an investment of $10 billion. Currently, it operates just five physical stores, all located in the United States, which offer products such as Pixel phones, watches, and earbuds.
The company aims to replicate a retail strategy that has proven lucrative for Apple Inc over the last two decades by prominently featuring its own products. Apple boasts more than 500 stores across the globe.
Reports indicate that Google is in the advanced stages of determining locations in or near the capital New Delhi, as well as in the financial hub of Mumbai, according to three unnamed sources who spoke on condition of anonymity due to the confidential nature of the process.
Google refrained from commenting on this topic.
One of the sources indicated that the stores are expected to span roughly 15,000 square feet, with an estimated timeline of at least six months before they open, although this timeline may be subject to change.
The IT center of Bengaluru in southern India was also among the potential locations, but New Delhi and Mumbai currently lead the considerations, the source added.
“The goal is to compete with Apple… particularly targeting the luxury market,” the source remarked, noting that additional stores may be explored if the initial ones perform favorably.
At present, Google markets its products in India through authorized retailers, similar to Apple. However, in 2023, Apple CEO Tim Cook visited India to inaugurate its first company-operated stores in Mumbai and New Delhi.
In India, the cost of Pixel phones ranges from approximately $370 to $2,000 for premium models, while Apple’s iPhones are priced between about $520 and $2,130. Google has also commenced local production of Pixel smartphones in India.
As of 2024, Apple leads the premium smartphone market in India, with a share of around 55% for devices priced above $520. In contrast, Pixel holds just a 2% market share, according to research group Counterpoint. The rapidly expanding Indian market currently hosts around 712 million smartphone users.
Google’s initiative to open these stores is confirmed and will be implemented soon; however, the company must navigate certain regulatory and compliance processes before establishment, as reported by the second source, who did not provide further details on these issues.
The third source mentioned that one of the potential locations being considered by Google near New Delhi is in Gurugram, a satellite city that houses many global corporations, including Uber and Meta, as well as retail outlets like Uniqlo.
In India, Google faces a range of regulatory and legal challenges, including ongoing antitrust lawsuits concerning its in-app billing system and alleged market position abuses in the smart TV sector.
Additionally, in a significant leadership change, Google lost its head of public policy in India this month, marking the second departure from this crucial role, which plays a vital role in government engagement, in about two years.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)