Apple has stepped up its efforts to tap the Indian market by seeking government approvals for opening Apple Stores and selling and manufacturing refurbished devices in India. Now Apple is already said to be looking for space in key cities such as Mumbai, Delhi-NCR, Bengaluru and Pune for its first Apple Stores in the country.
The report further says Apple is planning to replicate its iconic Fifth Avenue Apple Store in New York City, along with smaller outlets in India. Apple’s Fifth Avenue store is popular for its unique glass cube design partly designed by the late Steve Jobs. The large cube encloses the entrance to the main store via an Apple patented glass staircase. The report points out the cube design will be for the flagship stores in India.
According to the report, Apple is planning to set up 2,000-3,000 sqft stores in India that will also have space for tech support and small workshops — similar to the ones in the US.
Apple stores are one of the critical elements of Apple’s business model. In fact, Apple leads the US’ retail market in terms of sales per unit area. So far it has 481 retail stores in 18 countries including neighboring China. These stores have helped Apple build itself as a luxury brand as well as giving users a premium experience before making a purchasing decision.
With its main markets nearing saturation level, Apple has shifted its focus on emerging markets like China and India. Even as it has yet to begin its efforts in retail segment, Apple has already grown a lot bigger in China in the recent years. Apple’s sales to China market along with Hong Kong and Taiwan, grew 14 percent to $18.37 billion, in the December quarter. It now plans to increase its Apple Stores to 40 in China by the end of the summer this year.
CEO Tim Cook has already revealed India is going to hold key for its success and is one of the most important growth areas for the next decade. It may be recalled that despite the global slowdown, Apple had recorded better figures in India, which has been long considered as a price sensitive market and is currently dominated by budget Android smartphones. According to the recent IDC figures, Apple edged past Xiaomi to grab no. 6 spot in 30 Indian cities.
Apple Stores are likely to lay the foundation for Apple’s bigger foray into the Indian market, which it had largely ignored for several years. A Fifth Avenue-like store clearly show Apple’s intentions of company’s long-term strategy for the Indian market. We can expect Apple’s smaller outlets to be akin to the ones in the US and may initially target the urban consumers. These outlets are likely to offer uniform design and experience to the customers.
But does Apple’s new efforts mean cheaper devices in India? Well, highly unlikely. Tim Cook recently said that the company has no intentions of launching a stripped down version of the iPhone to appease emerging markets. Cook added the company’s research indicates users in these markets are now willing to invest more for improved experience.
But that being said, another interesting thing to watch out from Apple is its plans tosell refurbished iPhones in India. The pre-owned Apple devices are likely to attract price-sensitive consumers. This is likely to help Apple expand its foothold in the mid-range smartphone segment where Android is very huge.
In an exclusive interview with Inside Retail Asia, Furla CEO Eraldo Poletto explains how the company has bucked the decline in luxury spending in core markets like Hong Kong and Singapore during the past year. Furla achieved 53 per cent growth in total sales (in euro at the current exchange rate) in Asia-Pacific, where it counts 14 markets – Australia, Cambodia, China, Hong Kong, India, Indonesia, Korea, Macau, Malaysia, Singapore, Taiwan, Thailand, The Philippines and Vietnam. Japan, a stand-alone territory in Furla’s accounts, saw sales grow 24 per cent.
