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Apple to reportedly bolster India presence with 'store-within-a-store' outlets

post #1 of 8
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According to a report on Friday, Apple is looking to penetrate the emerging smartphone market in India by striking deals to build so-called "store-within-a-store" locations across the second most populous country on earth.

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Apple is said to be in the midst of planning a larger entry into India's burgeoning marketplace, claims The Economic Times, which reported that two of the company's top regional executives met with retailers regarding future partnerships. The company does not currently have an official Apple Store in the region.

Apple's India chief Maneesh Dhir and head of telecom business Sanjay Kaul are reportedly pushing hard to make inroads into smaller Indian towns by creating "stores-within-stores" with a number of local retailers. In all, Apple is said to be looking at 100 exclusive "standalone" stores that will operated under a franchise model.

Sources said Dhir and Kaul met with 20 CEOs and senior executives of India's largest electronics retails chains on Monday, outlining Apple's plan to penetrate the top 50 "tier II and III markets." The focus will apparently be on iPhones, iPads and iPods, which are to be marketed in stores-within-stores.

While it is unknown exactly what the executives have in mind, Apple already has similar setups in operation state side at Target and, to a greater extent, Best Buy.

"Getting such space or investing so much on decor may not yield appropriate return on investment from small-town stores since sales cannot be at par with the stores at metros, even though Apple has committed a margin of 15-20% provided the sales targets are met," said a senior executive from one Indian retailer. "It sounds ambitious."

No timeline was given for the rumored India plan, but sources claim the company is planning to at least begin rolling out the shops before the fiscal year is out.
post #2 of 8
Apple already has "Store within a store" concept at Reliance digital store in major metro
Cities in India and Authorized Apple stores (istore and Apptronix) which replicate
the original Apple store design. But these stores are limited

These talks might bring more "Store within a store"
post #3 of 8
The main difference between the Apple's own 'Apple Stores' and the US version of an Apple Store within a store is the staff in the real Apple store.

I have lost count of the times I have overheard staff in Best Buy, Target etc. here in the US say things a long these lines ... 'Oh this tablet is the same as an iPad but better and costs less' as he holds some piece of Android junk while talking to an elderly could that seem confused. If Apple place stores in stores here or in India, they should, IMHO, always have their own staff as part of the arrangement.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #4 of 8

So true. Especially when a majority of people here in India are all Samsung crazed. Customers here should be educated on why Apple is more expensive. Once people start to use Apple products more, there will probably stick to it. But, I still have reservations on that. Apple should have come to India earlier and pushed harder. Hoping Apple will work its magic here...

post #5 of 8
Hope these new stores come in zombie hordes.
There are enough people to staff zombie hordes of shops that is for sure.
post #6 of 8
Quote:
Originally Posted by Nagendra View Post

Apple already has "Store within a store" concept at Reliance digital store in major metro
Cities in India and Authorized Apple stores (istore and Apptronix) which replicate
the original Apple store design. But these stores are limited

These talks might bring more "Store within a store"

The 'store-within-a-store' is also there in Chroma outlets. I buy all my stuff from Imagine, which was the first Apple authorised re-seller in India. But if Apple finally clears all the hurdles to open their own store, I'd shop there in an instant.
post #7 of 8
Don't get your hopes up. Indian law doesn't allow full foreign direct investment. To have its exclusive stores in India, Apple will have to go for a joint venture with some major retailer. That means they will have to cough over part of the sales profits to say Chroma or any other large mobile sales chain.
Then there is the added overhead of maintaining trained personnel to educate people about apple products.
All this to sell premium products in limited quantities, sounds like a long shot.
post #8 of 8
Quote:
Originally Posted by Webwiz View Post

Don't get your hopes up. Indian law doesn't allow full foreign direct investment. To have its exclusive stores in India, Apple will have to go for a joint venture with some major retailer. That means they will have to cough over part of the sales profits to say Chroma or any other large mobile sales chain.
Then there is the added overhead of maintaining trained personnel to educate people about apple products.
All this to sell premium products in limited quantities, sounds like a long shot.

Not getting my hopes up at all. I know all the arguments and hoops that FDI is going through. I don't expect Apple to come here anytime soon.
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