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Apple's strategy for launching first retail store in India
1. Created a case study of an iconic brand from consumer companies that used own retail formats to support brand building
and consumer engagement for its products. The case answered the following questions:
- What all retail formats was this brand using before opening own retail stores?
- Why was there a need for own retail stores? What were the objectives that this brand wanted to meet through an own retail channel?
- What was the execution strategy for own retail stores? What worked, what did not work?
- What are the key takeaways for this consumer electronics manufacturer from this case study?
Case study - Launch of a first-ever Retail Store
2. Launch of a Retail Store
Apple Store - India
Prepared for
3. Section 1: Introduction
Section 2: Objective
Section 3: Executive Strategy
Section 4: Global Presence
Section 5: Key Takeaways for launch of a retail store
Table of Contents
4. The opening of an online and offline store would help Apple shore
up its revenue in India
Tech products
- Apple Inc. is a Cupertino-
based tech giant
- Had solely relied on third-
party retailers and
distributors, for the sale of
iphone, iPad, MacBook
and Apple Watch, in India
Online channels
- Offers a percentage cut of its revenue
to the platforms such as Amazon India,
Walmart-owned Flipkart Online
Services Pvt. and Paytm mall
Offline stores
- Moreover, it’s branded ‘brick-and-
mortar stores’ are also managed by
third parties and not operated directly
by the company itself
5. - In India, despite of ecommerce availability, customer still prefer a ‘brick-and-mortar store’ to physically view the product
before buying it, and majority uses online resources simply for research and information.
- In 2019, with the relaxation of FDI rule for foreign single brand retailers, the Indian mobile handset industry opened the
gateway for multi-brand retail traders like Apple, OnePlus, etc.
- Later in 2019, Apple CEO Tim Cook announced to open its first physical retail store in India, by Q1 2020 - “We love our
customers in India and we're eager to serve them online and in-store with the same experience and care that Apple
customers around the world enjoy.”
- The objective behind opening the first Apple retail store in India was to provide personalized attention to its customers,
rather than just selling the products through virtual assistance.
- According to a report by Counterpoint in 2019, the iPhone shipments in India had increased by 6 %.
- Locally manufacturing and selling high-end iPhones through its flagship retail store will provide the following benefits:
o Avoids 20% tariffs on imported phones
o Allows Apple to retain the entire revenue and showcase all its products to consumers at a more competitive and less-expensive price
o Provide a controlled experience of its services to Indians’, which otherwise can’t be monitored in a third-party retail environment
Shifting local sourcing requirements and manufacturing sites into
India, opened up gateways for Apple retail expansion
6. By Q4 2020, Apple will be ready to maintain balance between govt.
norms and cost-conscious Indians’, without diluting its premium image
Leased three floors in Mumbai's Maker Maxity mall, each
dedicated for experience centre, retailing unit and service
centre
1
Begun conducting quality tests for the iPhone Xr series with
Foxconn, and planned mass production in Chennai2
Older models were also being assembled at a Wistron plant in
Bangalore3
Planning to partner with banks to offer ‘holiday deals year
around’ to captivate customers4
In discussion with content studios to bulk up its movie and TV
show offerings for the Indian audience5
Apple’s strategy in action:
- By Q1 2020, Apple had planned to open
new retail stores first in Mumbai,
followed by Delhi-NCR and Bengaluru.
- The focus was to engage customers by
physically addressing customers' queries
on their purchase journey by delighting
them with staff professionalism, pleasing
open spaces, unique sitting areas and
large screens for marketing and
community events.
- But with the outbreak of corona virus in
Q4 2019 and delay in the process of
finalizing its supply chain, launch was
further postponed to late Q4 2020.
- Past experience justifies that Apple
Stores were the highest performing
stores in retail history.
7. Since the launch of it’s first retail store in US in 2001, Apple
expanded to 506 stores spanning 25 countries
Retail store to be launched
Launched (not all countries were marked green)
8. Direct-to-consumer retail store is an important touch-point, as
consumers love to feel, touch and experience the products themselves
- Why share
profit with
others?
- Why expect
somebody
else to run
our brand?
New product
Foreign
distributor
Offline
retailers
E-
commerce
platforms
Currently selling products via: