Google is close to deciding on locations in India, where it will open its first physical retail stores outside the US. According to news agency Reuters, Google counts India as a key growth market and has committed to investing $10 billion. The software tech giant currently has only five physical stores, all based in the US, where it sells products such as Pixel phones, watches, and earbuds.
Google aims to mirror the retail approach that helped Apple Inc. rake in billions of dollars in the last two decades by showcasing its own products. Apple has 500+ stores worldwide. Google is in the advanced stages of finalising locations in or around the capital of New Delhi and the financial capital, Mumbai.
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Google to open retail stores in India
According to Reuters, stores will likely be around 15,000 square feet and will take at least another six months to open, though the timeline could change. Bengaluru, the IT hub in south India, was also considered, but New Delhi and Mumbai are the frontrunners. Google aims to compete with Apple and will target the luxury segment. If the initial ones perform well, it will add more stories.
Google and Apple currently sell their products in India through authorised retailers. But in 2023, Apple CEO Tim Cook visited India to open its first company-run stores in Mumbai and then in New Delhi. Pixel phones in India cost from about $370 to $2,000 for top-end models. Apple’s iPhones cost from about $520-$2,130. Google has also started making Pixel smartphones in India.
According to research group Counterpoint, in 2024, Apple Inc dominated the local market for premium phones, priced above $520, with a roughly 55 per cent share, compared with Pixel’s two per cent share. The fast-expanding Indian tech market currently has about 712 million smartphone users.
Google’s plan to open the stores is firm and will be executed soon. Reuters said some standard regulatory and compliance processes need to be cleared before the stores can be set up. One of the possible locations that Google is considering near New Delhi is in the satellite city of Gurugram, where many global corporations such as Uber and Meta have offices and the likes of Uniqlo have retail outlets.
In India, Google is battling many regulatory and legal challenges. Among them are ongoing antitrust cases related to its in-app billing system and abuse of market position in the market for smart TVs. In a top-level departure, Google lost its India head of public policy this month. This marks the second departure in two years from the critical role that is key to government engagement.
