Once these glass doors are unlocked, focus will shift to the next Apple Store, expected in Delhi.
It’s almost time. The first official Apple Store in India is ready to open for business. In Mumbai, the store christened Apple BKC, colourful barricades in plain sight are indicative of a countdown almost at its logical conclusion. Once these glass doors are unlocked, focus will shift to the next Apple Store, expected in Delhi.
Both cities signify Apple’s initial steps towards a retail presence in India, adding to the 552 stores it has in 25 countries. It is an exceptional list of locations, a result of careful selection, with an intent at blurring the lines between art and architecture.
Some Apple Stores are ambitious modern designs with emphasis on sustainability, while others accentuate architecture of a past era. The naming scheme is designed to bond with the place.
Apple Marina Bay Sands in Singapore is a glass dome that sits on water. Apple Dubai Mall has a 186-foot curved double height storefront with motorised ‘Solar Wings’ overlooking a towering Burj Khalifa. Apple Al Maryah Island in Abu Dhabi welcomes visitors with steps of cascading water. The magnificent Apple Champs-Élysées in Paris is all about Haussmannian architecture. The grandiose store at Michigan Avenue in Chicago, features a curved glass roof.
“Our stores are always influenced by the communities where they reside,” Deirdre O’Brien, senior vice president of Retail at Apple says. Some stores are in malls, others on main street. Apple BKC finds its home in the Jio World Drive Mall.
“We revealed our beautiful new creative for Apple BKC, which is inspired by the iconic ‘Kaali Peeli’ taxi synonymous with Mumbai. It features colourful interpretations of the decals celebrating the unique art form they provide the city,” adds O’Brien.
For Apple in India, official retail stores are the final piece of the jigsaw with strong sales and local manufacturing already in place.
Through partners including Foxconn and Wistron, there’s been a strengthening of iPhone manufacturing scale in India, including commitments under the Production Linked Incentive (PLI) scheme. The latest generation iPhone 14 series is, made in India, part of a wider effort to shift device production out of China.
The ‘Made in India’ smartphone shipment data by Counterpoint Research from March, indicates that while overall shipments declined 3 % year-on year (January – December 2022, compared to 2021), there’s a 34% growth in terms of actual value. Apple’s share grew 65% (in terms of volume) and 162 % (for value) in this period, giving it a 25%share of 2022’s overall shipments. That is up from 12% in 2021.
Apple wants 25% of all iPhones, to be manufacturing in India, something Commerce and Industry Minister, Piyush Goyal said earlier this year. India presently accounts for about 7% of all iPhones made.
A store fits perfectly into that scheme.
A store also gives Apple the control it craves, to define visitor experience, product availability and support.
This is not Apple’s first retail move in India. The company’s online store went live in September 2020. Unique elements that have stayed since, include trade-in for old phones and an option to customise Macs. These should extend to the physical retail store too.
Secondly, the make in India focus gives Apple proximity to manufacturing, with advantages in maintaining inventory, alongside possible flexibility with pricing and offers.
But there’s much more to the opening of an Apple Store anywhere, a fact that isn’t lost on analysts.
“The Apple-owned flagship stores are a critical lynchpin in Apple’s bid to win the India market. A stream of favourable tailwinds is backing the launch of the Apple-owned flagship retail stores in India,” says Prabhu Ram, Head- Industry Intelligence Group (IIG) at Cyber Media Research (CMR).
“This timing should be read more as a function of maturity of the Indian consumer and preferences, especially at the premium end which is pushing Apple to consider its next big growth market in the next decade,” adds Navkendar Singh, Associate Vice President for Devices Research at IDC.
According to IDC, Apple clocked 60% share in the premium smartphone bracket (that’s upwards of $500; or around ₹40,000) in 2022. Samsung was a distant second, with a 21% share. The most sold premium phone? Apple iPhone 13.
Apple is selling more phones than ever before in the country, while a declining Indian smartphone market ended 2022 with 144 million shipments, the lowest since 2019, and a 10% drop year-on-year. “Apple has done really well across categories in past couple of years, especially in iPhone sales with around 6.7 million units in 2022,” says IDC’s Singh. In comparison, iPhone sales were pegged at 4.8 million in 2021 and 2.7 million in 2020.
Because an Apple Store tends to become a landmark for locals and a must-visit spot for tourists, the company’s focus goes much beyond just choosing a likeable location.
It is important for stores to have wide appeal, at a time when shopping habits have largely shifted online.
Physical retail stores, a traditional channel, need to remain relevant for buyers. In India, this might be easier still. CMR’s Ram points out a trait of consumers in India, particularly reflecting on big ticket purchases. “Offline retail continues to be pivotal. Indian consumers love to touch, feel, and explore products before making their purchase considerations,” he says.
The configuration of each Apple Store, with components defining visitor experience, remain consistent globally. Apple confirms this continuity in format for stores in India too.
It is not often that you enter a physical retail store, and not notice a separate payment counter. Or inevitable snaking queues, part of that package. The Apple Store staff assisting buyers, carry mobile payment terminals, which work with credit cards and debit cards. At Apple BKC, UPI, or unified payments interface will work too. Buyers can complete the shopping anywhere in the store.
Apple confirms store staff have no pressure of sales or service targets. They are trained, and expected, to spend as much time as it takes with a customer to clear doubts, recommend a best fit or fix a device.
It is easy to miss, but every Apple Store has unseen lines, dividing it into four sections — Apple’s product range, a ‘Genius Bar’ for repair or assistance, Apple services, and third-party accessories. “Our stores have dedicated spaces for all personal shopping sessions,” says Apple’s O’Brien.
There is a fifth element too, which is the space to host creative sessions, called Today at Apple. Most stores have a daily schedule of these sessions, with focus areas including photography tips, coding skills or productivity. These are free to attend.
“Apple’s retail stores globally set a standard in terms of consumer experience, staff knowledge and expertise, and service standards, amongst others,” points out CMR’s Ram. This is the benchmark that brands such as Samsung will likely attempt to imitate.
But ultimately, especially in a value conscious market such as India, the price tag will matter.
Whether Apple’s BKC and the Delhi stores show an intention to match offers from large format chains, online shopping websites as well as retailers , will be crucial. Over time, these online and offline partners played a pivotal role in Apple’s growth in India. “After the initial hype around the stores, the pricing will play a major role in boosting sales,” warns IDC’s Singh.
Source:-https://www.hindustantimes.com/india-news/apple-opens-first-official-store-in-india-signaling-its-focus-on-the-country-s-growing-market-with-strong-sales-and-local-manufacturing-already-in-place-101680806087014.html