Google Plans To Open Brick And Mortar Stores In India

Google is preparing to open brick-and-mortar stores in India to shore up sales of its Pixel smartphones in one of the world’s fastest-growing markets for the devices where the tech giant is lagging behind competition.

The company is said to have been encouraged by the response to more than a dozen pop-up stores in recent weeks that it opened in malls across India, including High Street Phoenix in Mumbai, and Select Citywalk, Promenade, Mall of India in Delhi-NCR to showcase Pixel 2 phones and educate consumers on its features.

At least two prominent malls in India have received requests for space to set up Google stores. Google will use the stores to sell other products as well. Its hardware includes Google Home smart speakers, Chromecast streaming devices, Pixel laptops and Daydream View virtual reality headsets.

This is Google’s latest strategy to boost smartphone sales in India, where it’s not just trailing Apple and Samsung, but also Chinese brands such as Xiaomi, Vivo, and Oppo. This will be Google’s second stab at physical outlets in the country. In 2013, Google had in partnership with BK Modi-promoted Spice Group rolled out AndroidLand outlets to sell Android smartphones from brands such as Samsung, Sony, HTC, Lenovo, Xolo, Micromax, and Karbonn, alongside Spice, which also sells its own branded smartphones.

Dilip Modi, chief executive of Spice Connect said “We had done two stores as part of the pilot and then we could not proceed with the project as they did not meet with our desired objectives.We planned to open 50 AndroidLand outlets in 18 months but the venture folded up with the two stores in Select Citywalk in Delhi and The Great India Place Mall in Noida shuttered due to poor sales.”

However, it is unclear whether Google will apply for a single-brand retailing licence in India or take the franchisee route like Apple and Samsung. Samsung branded stores are owned and operated by franchisees in India, Xiaomi’s Mi Home physical outlets are owned by franchisees.

Apple is seeking a single-brand licence to open own stores in India and has sought concessions including duty exemption on manufacturing and servicing, components, capital equipment and consumables for 15 years.