Apple Launched First Retail Store in India
Apr 06, 2023
Apple has unveiled its first retail store in India, located in Mumbai's Reliance Jio World Drive mall.
Apple has unveiled its first retail store in India, located in Mumbai's Reliance Jio World Drive mall. The store features artwork inspired by the iconic black and yellow Kaali Peeli taxis and is set to open later this month. Despite Apple's success in India's online retail market, where it launched in 2020, it only holds a 3% share of the country's smartphone market due to its high prices. This article explores the significance of Apple's first physical retail store in India and the challenges the company has faced in establishing a physical presence in the country.
Apple's Journey in India
Apple's journey in India began in 2016 when the company applied to open its own retail stores in the country. However, the Indian government initially rejected Apple's proposal due to local sourcing requirements. Under Indian law, companies are required to source 30% of their materials locally if they want to establish their own retail stores in the country. Apple lobbied the Indian government to relax this requirement, arguing that it was not possible to source enough materials locally to meet its needs.
In 2017, Apple announced that it would begin manufacturing iPhones in India in partnership with Taiwanese contract electronics manufacturers Foxconn and Wistron Corp. By manufacturing locally, Apple was able to meet the local sourcing requirement and begin selling iPhones in its own stores.
In 2020, Apple launched its online retail store in India, allowing customers to buy iPhones, iPads, Macs, and other Apple products directly from Apple. While this move was seen as a significant step forward for Apple in India, the company's high prices meant that it only held a small share of the Indian smartphone market.
Challenges Apple faces in India
Apple has faced several challenges in establishing a physical retail presence in India. One of the main challenges has been the local sourcing requirement, which has made it difficult for Apple to establish its own stores in the country. The requirement has also made it challenging for Apple to set up its supply chain in India, as it has had to work with local suppliers to meet the requirement.
Another challenge for Apple has been the high import duties on electronics in India, which have made it difficult for the company to sell its products at a competitive price point. To address this challenge, Apple has been working to establish a manufacturing base in India, which would allow it to avoid import duties and sell its products at a more affordable price.
Finally, Apple has faced challenges related to the Covid-19 pandemic, which has disrupted its plans to establish physical stores in India. Apple had originally planned to open its first retail store in India in 2021, but the pandemic forced the company to delay its plans.
Despite these challenges, Apple's decision to establish a physical retail presence in India is a significant step forward for the company. By opening its own stores, Apple can offer customers a more immersive experience and showcase its products in a way that is not possible through online retail channels. Additionally, by manufacturing locally, Apple can avoid import duties and sell its products at a more competitive price point. While Apple's journey in India has been challenging, the company's commitment to the Indian market is a clear indication of the potential it sees in the country.
