industry

India Apple stores making retailers jittery


Mainline retailers in India fear a sharp 50-60% fall in footfalls of Apple customers during the launch of new products in cities where the US smartphone major opens physical stores. The tech giant is opening its first physical store in India on April 18 in Mumbai and another in Delhi on April 20.

Mainline retailers ET spoke with said they expect the early adopters and Apple’s most high-end customers in the two cities – which account for 20% of annual iPhone sales – to frequent the company’s exclusive stores. Some were worried if adequate stocks will be released to mainline retail stores, especially in cities with Apple’s own stores.

Sources close to the company dismissed such fears and said Apple’s retail push will benefit the overall retail ecosystem as customers will get the chance to experience the products and then purchase from their preferred channel.

Previously, Apple would sell its products through exclusive Apple Premium Partner stores, large format retailers, and through general trade and ecommerce platforms.

On Tuesday, Apple said the new retail locations mark a significant expansion in India.

“Beginning April 20, customers will be able to stop by to explore Apple’s latest product line-up, find creative inspiration, and get personalised service and support from the store’s team of specialists, creatives, and geniuses,” Apple said.

“Apple will look to create an experience centre for its elite customers with the retail stores. Prima facie, it will lead to some damage to mainline retailers in Mumbai in the initial stages,” said a Mumbai-based retailer who wished not to be named.Apple’s retail stores in the United States and Europe see large queues outside during the launch of new products such as the iPhones.

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“The company will also look to create similar hype in Mumbai and Delhi during new launches. Existing Apple users in these cities will prefer to visit the store to experience the product before buying,” said Navneet Pathak, general secretary, All India Mobile Retailers Association. Not all products are showcased for experience at the mainline retail stores, he added.

“As a result, footfalls during new launches will go down at least 50-60%,” Pathak said, adding that the biggest question right now is if Apple will offer enough stocks to the mainline retailers going forward.

“Apple has not communicated about its plans for general trade yet,” he said.

Some downplayed the impact of the company’s own stores, stating the majority of new iPhone users, around 80%, will be coming from smaller towns and cities, and with only two stores in the country for now, there will be limited impact on general trade.



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