KOLKATA/MUMBAI: Apple plans to go local with a vengeance, setting up small, neighbourhood shops in big cities and tier II markets, in a bid to get closer to potential buyers as it pushes ahead with an India-specific strategy aimed at trying to grab market share from dominant rival Samsung.
The shops will be set up by Apple distributors Redington and Ingram Micro besides existing trade partners and follows the revival of the iPhone 4 for sale in India and other emerging markets, which gave buyers who covet the brand the option of a phone that costs much less than latest models. Apple has also directly approached some trade partners and retailers regarding the setting up of the neighbourhood stores.
Samsung is widely present in the Indian retail market place, offering smartphone and tablets through more than 1,000 Smartphone Cafes. Apple is late to the game, only having seriously focused on India in the last two years but having since then given the local management a freer hand. Apple India has sought to push phones and tablets through exchange and finance programmes, besides reintroducing the iPhone 4, which is defunct elsewhere.
The company has also reintroduced the iPhone 4, which is defunct elsewhere.
Apple has informed distributors and trade partners in recent meetings that it is looking to set up exclusive 400-600 sq ft stores in neighbourhoods and some popular high-street locations. They will focus on mobility products such as iPhones and iPads, besides entry-level Mac computers and iPods, said three of Apple's trade partners aware of the plans.
"Apple wants to focus more on its entry-level models in these stores such as iPhone 4, iPhone 4s, iPad mini and iPad 2, which are essentially in the sub- 30,000 segment and also its largest-selling products in India," said a senior executive of a leading trade partner of Apple.
"The company feels these products are also attractively priced over competitors such as Samsung and Sony, and hence, being closer to the consumer will help to increase the conversion rate," he said.
Apple wants to set up these smaller stores in areas where people have high disposable incomes, there's a strong penetration of smartphones and a large student population such as Pune, Vizag, Guwahati, Durgapur and Gangtok. Apple has not set any expansion target for the small-format stores.
Apple to focus on iPhones & iPads; to open small stores across India - Economic Times
