Google is finalising plans to establish its first-ever physical retail stores outside the United States, with locations likely in New Delhi and Mumbai, three sources familiar with the matter told Reuters. This move is expected to strengthen Google’s presence in India’s premium smartphone market, where it competes with Apple.
India, a key growth market for Alphabet Inc.’s Google, has been a major focus for the company, with a $10 billion investment commitment in the country. Until now, Google has only operated five retail stores all within the US. These stores showcase and sell Pixel smartphones, watches, earbuds, and other hardware products.
Now, in a direct challenge to Apple, which has successfully leveraged its retail presence worldwide, Google aims to adopt a similar strategy by launching its own premium stores. Apple operates over 500 stores globally and opened its first company-run stores in Mumbai and New Delhi last year.
Google is in advanced discussions to set up its first stores in New Delhi and Mumbai, according to the Reuters report.
• The planned stores are expected to span around 15,000 square feet. • They are estimated to open in at least six months, though timelines could shift. • Bengaluru was initially considered but is not a frontrunner at this stage.
A third source revealed that Google is exploring Gurugram, a satellite city near New Delhi, known for hosting major global corporations like Uber and Meta, and premium retail brands like Uniqlo. “The idea is to compete with Apple … especially to target the luxury segment,” a source said.
Should the initial stores perform well, Google is likely to expand its retail footprint further across India.
Currently, Google’s Pixel phones hold only a 2% share of India’s premium smartphone market (devices priced above $520), according to Counterpoint Research. Apple, on the other hand, dominates with a 55% market share in the same segment.
Google has already started manufacturing Pixel devices in India, a move that aligns with the country’s “Make in India” initiative and allows the company to reduce costs and import duties.
Despite Google’s push in India, Apple has been ahead in premium branding, helped by CEO Tim Cook’s India visit in 2023 to personally launch its flagship stores in Mumbai and New Delhi.
While Google’s retail expansion is set in motion, it still faces regulatory and legal challenges in India. The company is dealing with antitrust cases related to its in-app billing system and its dominance in the smart TV market.
Additionally, Google recently saw a major leadership departure, with its India head of public policy resigning this month—the second high-profile exit from the role in two years.
According to one source, Google’s retail expansion is a firm decision, but the company must clear regulatory and compliance processes before the stores can be set up.