Google set to launch first physical retail stores in India

Google is in the final stages of selecting locations for its first-ever physical retail stores in India, marking its first major foray into brick-and-mortar retail outside the United States. The tech giant is looking to establish a direct presence in one of its key growth markets, following a model like Apple’s retail expansion strategy.

Currently, Google operates five physical stores in the US, where it sells its hardware products, including Pixel smartphones, smartwatches, and earbuds. The move to open dedicated stores in India is seen as an effort to enhance the visibility of Google’s premium devices, particularly the Pixel series, in a market dominated by Apple.

According to sources, Google is close to finalising store locations in New Delhi and Mumbai, while Bengaluru was also considered in earlier discussions. The planned outlets are expected to span approximately 15,000 sq ft, with openings anticipated within the next six months. Additionally, Gurugram has emerged as another potential site under consideration.

This expansion comes at a time when Google is ramping up local production of its Pixel smartphones, aligning with the Indian government’s push for domestic manufacturing. Currently, Google’s devices are sold in India through authorised retail partners, but direct retail stores could strengthen its presence in the premium smartphone segment.

The Indian premium smartphone market is heavily dominated by Apple, which holds a commanding 55 per cent share, according to Counterpoint Research.

In contrast, Google’s Pixel lineup accounts for just 2 per cent of the segment. By establishing a physical retail presence, Google aims to enhance brand visibility and attract more premium customers.

Apple’s retail strategy has proven highly successful worldwide, with over 500 stores globally, including its flagship locations in Mumbai and New Delhi, which opened in 2023. Google’s move appears to be a strategic effort to replicate Apple’s approach, showcasing its products in an immersive retail environment.

While Google’s retail expansion plan is firm, it must navigate standard regulatory and compliance processes before the stores can be set up. Additionally, the company faces ongoing legal challenges in India, including antitrust cases related to its in-app billing system and market dominance in the smart TV sector.

In a significant leadership change, Google’s India head of public policy recently stepped down, marking the second departure from this critical role in two years. This development adds to the complexities surrounding Google’s regulatory engagements in the country.

India’s smartphone market is expanding rapidly, with approximately 712 million users. Google’s decision to establish physical retail stores comes at a crucial time when the demand for premium smartphones is rising. The Pixel lineup, priced between $370 (Rs 32,000 approx.) and $2,000 (Rs 1.73 lakh approx.), competes directly with Apple’s iPhones, which range from $520 (RS 45,000 approx.) to $2,130 (Rs 1.85 lakh approx.).

By reinforcing its retail presence and ramping up local manufacturing, Google aims to gain a stronger foothold in India’s competitive premium smartphone market. While the exact launch date remains uncertain, the initiative is expected to give Google a significant push in its battle against Apple’s dominance.