Google is on the verge of finalizing locations for its first physical retail stores in India, marking its expansion beyond the United States. Sources familiar with the development suggest that the company is narrowing down potential sites in or around New Delhi and Mumbai, two of the country's most commercially significant cities.
India has emerged as a key growth market for Google, with the tech giant committing $10 billion to expand its operations in the country. At present, Google operates five physical stores, all in the U.S., selling its flagship hardware, including Pixel smartphones, smartwatches, and wireless earbuds.
Retail Expansion Strategy
The move is part of Google's broader plan to strengthen its presence in the Indian retail space and compete with established players such as Apple. The latter has significantly boosted its market share through its global network of more than 500 stores, including its recent expansion in India.
According to insiders, Google’s upcoming retail stores will likely cover an area of around 15,000 square feet and are expected to open within the next six months. While Bengaluru, the country’s technology hub, was also considered, New Delhi and Mumbai have emerged as the top choices for the first phase of the expansion.
"The objective is to strengthen Google’s brand positioning and take on competitors in the premium segment," a source stated, adding that further expansion would be considered based on the performance of the initial stores.
Market Impact and Competitive Landscape
Currently, Google sells its hardware in India through third-party retailers. However, with Apple opening its first company-run stores in Mumbai and New Delhi in 2023, the competition in the premium smartphone segment has intensified. Apple holds a dominant 55% share in India’s high-end phone market (priced above $520), while Google's Pixel series accounts for just 2%, according to recent market research.
With India’s smartphone user base surpassing 700 million, Google’s physical retail expansion is seen as a strategic move to enhance its direct-to-consumer sales and improve brand visibility.
Regulatory and Operational Challenges
Despite its ambitious retail plans, Google faces several regulatory hurdles in India. The company is currently dealing with multiple antitrust investigations, including issues related to its in-app billing system and alleged monopolistic practices in the smart TV sector.
Additionally, Google’s India operations recently saw a leadership change, with the head of public policy stepping down earlier this month. This marks the second high-profile departure from the role in two years, highlighting the challenges of navigating India's complex regulatory landscape.
As Google works through the final regulatory approvals and logistical preparations, its entry into India's retail market is expected to reshape competition in the premium smartphone segment. Industry experts believe this move could strengthen Google's foothold and enhance consumer engagement with its hardware offerings.
