Apple Plans To Grow In Indian Market By Opening 100 Standalone Stores

[RoBoGhOsT]

Samsung and other Indian manufacturers are leading in the Indian markets, Apple is loosing its market share. Now Apple is planning to expand its reach in Indian market by opening 100 standalone stores and additional store-in-store locations.



"Apple has realised that if it wants to grow fast in India, it has to look beyond the metros," said the CEO of one of India's retail chains. "The company wants to grow upwards of 30% year-on-year in India and feels the smaller markets would play a critical role since the aspiration level of Apple products amongst the youth and rich is growing there as well."

Economic Times reported that Apple senior executives in India had meeting with 20 CEOs and senior executives of the country's top multi-brand telecom and electronic retail chains.

Apple wants to set up 100 exclusive standalone stores under the franchisee model in smaller markets. It's scouting for franchise partners and has made proposals to some of the multi-brand retail chains, the executives said. Apple has not set any deadline for setting up these stores in smaller towns in India, but is looking to roll them out this fiscal year.

Source

 

[ayanavish]

"it has to look beyond the metros,” said the CEO of one of India’s retail chains...plus price exorbitantly. Not sure how this combo would work for Apple in non-metros.

 

[quixand]

Lets not be too judgemental, Apple sales soared 400% earlier this year in the Indian market (due to pretty good financing options for iPhone 4!). If they pull off some new move like bringing contracted phones at 15K starting it would be a coup. Wishful thinking?

 

[vantheman5211]

"it has to look beyond the metros,” said the CEO of one of India’s retail chains...plus price exorbitantly. Not sure how this combo would work for Apple in non-metros.

There would be a hell lot of new puppies who would like to fetch iphones in non metro cities as well.

Even though, their strategy looks a bit unlikely to me personally, especially at this stage of their existence, they do have started to act with a bit more seriousness over here.

 

[FaH33m]

"it has to look beyond the metros,” said the CEO of one of India’s retail chains...plus price exorbitantly. Not sure how this combo would work for Apple in non-metros.

Dont under estimate non-metro's / Tier II cities . The crazy for Apple or premium luxury clothing brands etc is as much as metros in a lot of these cities like Jaipur ,Indore , Raipur ,Chandigarh , Ludhiana , Dehradun etc. A lot of people have that kind of spending capacity as well in these cities.

 

[NeXT]

They shouldn't really bother tbh! Apple stuff is still expensive and price only seems to be increasing. Those attractive EMI's were good when things were being sold for 0% interest.

I hope they bring the online store instead. It would make more sense.

 

[blkrb0t]

^^Many people also like the in-store experience, and will base their decisions on a whim if they like the product they see. Also, you can walk in any time for support and service.

 

[rdst_1]

We already have 3 official reseller stores here in Chandigarh. What more do they want?

 

[ayanavish]

There would be a hell lot of new puppies who would like to fetch iphones in non metro cities as well.

Even though, their strategy looks a bit unlikely to me personally, especially at this stage of their existence, they do have started to act with a bit more seriousness over here.

Agreed. But 100 stores mean additional overhead charges and the cost would definitely be passed on to the end users. Given their pricing, and Android availability from every Tom, Dick and Harry at quarter of the price, a few less stores combined with online retailing and contractual phones seem to be a more justifiable approach.

Anyway given the company is Apple, anything is possible which only time would tell.

 

[raksrules]

Contracts in India will not work. Vodafone and Airtel tried when they lunched the 3GS (or was it 4 ?) and that never took off. We people love to change operators (thanks to number portability) if we are dissatisfied and moreoever there is no guarantee the person getting the phone will pay remaining account over a period of 2 years or so.

 

[NeXT]

These are not official Apple Stores. Just Re-sellers. Expect the same ones to expand albeit with the help of Apple.

 

[sudeep_hm]

apple is a overpriced crap.....they will not succeed in price sensitive markets like india. 300% to 400% increase is like 1 phone was selling previously now 300 or 400 might have sold...
it is only good for overspending USA (on others money and that is why their economy is shutdown)

 

[blkrb0t]

apple is a overpriced crap.....they will not succeed in price sensitive markets like india. 300% to 400% increase is like 1 phone was selling previously now 300 or 400 might have sold...
it is only good for overspending USA (on others money and that is why their economy is shutdown)

LOL

Humans have an organ which gives them the ability to think. Use that sometimes; I've heard that it helps.

 

[srkmish]

apple is a overpriced crap.....they will not succeed in price sensitive markets like india. 300% to 400% increase is like 1 phone was selling previously now 300 or 400 might have sold...
it is only good for overspending USA (on others money and that is why their economy is shutdown)

apple is a overpriced crap.....they will not succeed in price sensitive markets like india. 300% to 400% increase is like 1 phone was selling previously now 300 or 400 might have sold...
it is only good for overspending USA (on others money and that is why their economy is shutdown)

Perfect, the most objective and rational analysis of apple yet
Lessons to take away from this post

1. All apple products are overpriced crap
2. They will never succeed in India
3. All people in USA overspend
4. They overspend using others money and hence their economy has shutdown.

 

[sudeep_hm]

god bless you for reminding...by the way are you from USA???

 

[sudeep_hm]

the reply was for blkrb0t..

 

[vantheman5211]

Agreed. But 100 stores mean additional overhead charges and the cost would definitely be passed on to the end users. Given their pricing, and Android availability from every Tom, Dick and Harry at quarter of the price, a few less stores combined with online retailing and contractual phones seem to be a more justifiable approach.

Anyway given the company is Apple, anything is possible which only time would tell.

In the artical it seems they are going for the franchisee model which would help save about 60% of the laydown costs. Another factor of the retail market in tier 2 cities is that the land aquisition for small stores is relatively cheaper, especially in the current market.
The iphone 5s would likely be launched before these stores are laid down anyway.

 

[swatkats]

I saw a lot of people using iphones during 2010- 2013 mid, Sadly 5 out of 10 phones are imported from US which are available for 8-10k less .

Most of them are not Interested in buying an iphone from aptronix/ other resellers. This is what my observation has been.
I don't understand the Real logic behind this..
I don't think iphone's are overpriced until launch of recent models 5s and 5c.
i4 and 4s, i5 are my favorites phones.

 

[pauldmps]

As a case study, here in Bhubaneswar, given the huge number of Audis, BMWs & Jaguars moving around, I believe people have the capacity to spend for this overpriced piece of crap. The only thing that hampers it is availability .

 

[swatkats]

The iphone 5s would likely be launched before these stores are laid down anyway.

October 25 launch date is what i am hearing. I believe Apple Re-sellers Have a Profit margin of Rs 3,000-4,000/piece.