Apple reportedly pushing for dominance in India by opening store within a store outlets
India has a burgeoning mobile market and Apple is apparently looking to cash in. The company is reportedly in talks with retailers to open as many as 100 store within a store outlets in the country.
Apple already has similar setups in its home country, where retailers such as Target and Best Buy offer retail space inside their stores to Apple. Apple then sells its devices and pays them a decent margin, its a win-win situation for all parties involved. While Apple doesn’t have an official retail store in the region, its two top executives have reportedly met with retailers in India to hash out something along the same lines.
The idea is, or claimed to be, that both executives want to make an entry into smaller indian towns. To do that they’ll have to team up with local retailers and open store within a store outlets inside their stores. These outlets will be operated under a franchise model and Apple is reportedly willing to open up as many as 100 outlets in smaller Indian towns to increase its dominance in the Indian mobile market.
The focus will be on selling mobile devices such as iPhones, iPods and iPads. However, one senior executive from an Indian retailer called this plan “ambitious.” He believes that getting space and investing so much in decor would not bring the appropriate return on investment, since sales at small towns won’t match that of metros. He says that Apple has committed a 15-20 percent margin to retailers provided that sales targets are met.
Source: The Economic Times