Google’s Retail Expansion in India
Google is moving forward with plans to set up its first physical retail outlets outside the United States, targeting locations in New Delhi and Mumbai, as indicated by three sources familiar with the developments, reported by Reuters. This strategy is anticipated to enhance Google’s foothold in India’s premium smartphone sector, where it faces competition from Apple.
India represents a significant growth opportunity for Google, a subsidiary of Alphabet Inc., which has committed to investing $10 billion in the region. Until now, Google has only operated a total of five retail stores, all located in the US. These stores exhibit and sell Pixel smartphones, smartwatches, earbuds, and a variety of other hardware products.
Now, Google aims to directly compete with Apple, which has effectively capitalised on its global retail presence, by establishing its own upscale storefronts. Apple boasts over 500 stores worldwide and launched its first company-operated outlets in Mumbai and New Delhi last year.
According to the Reuters report, Google is engaged in advanced discussions regarding the establishment of its initial stores in New Delhi and Mumbai.
• The proposed stores are expected to cover approximately 15,000 square feet. • They are projected to open within the next six months, although these timelines may vary. • While Bengaluru was initially a contender for store locations, it is currently not a priority.
A third source indicated that Google is considering Gurugram, a nearby satellite city to New Delhi, which hosts significant global companies such as Uber and Meta, alongside premium retail names like Uniqlo. “The aim is to rival Apple … particularly focusing on the luxury market,” the source disclosed.
If the initial retail outlets succeed, Google is likely to broaden its retail presence further throughout India.
As of now, Google’s Pixel smartphone line only holds a modest 2% of India’s premium smartphone market, which includes devices priced above $520, based on findings from Counterpoint Research. In contrast, Apple commands a significant 55% share in this premium category.
Google has commenced the manufacturing of Pixel devices within India, aligning its efforts with the country’s “Make in India” initiative, which aids in reducing costs and import taxes.
Despite Google’s increased efforts in the Indian market, Apple continues to lead in terms of premium branding. This success has been partially driven by CEO Tim Cook’s visit to India in 2023, during which he personally inaugurated Apple’s flagship stores in Mumbai and New Delhi.
While Google’s retail plans are underway, the company still faces several regulatory hurdles and legal issues in India. Presently, it is contending with antitrust allegations concerning its in-app billing policies and its leading position in the smart TV sector.
Furthermore, Google experienced a significant leadership shift with the resignation of its head of public policy in India this month, marking the second notable exit in two years.
One source noted that although Google is committed to expanding its retail operations, it needs to navigate regulatory and compliance requirements prior to the establishment of the stores.