Apple India opens franchise stores

1 min readUpdated Mar 22, 2017Mar 22, 20173:31 AM

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Apple has set up more than 100 small franchise stores in India in the pilot phase of an initiative aiming at six-fold expansion over the next 12 months.

The US electronics company’s move is a bid to take on Samsung and Chinese rivals, reports The Economic Times.

Branded as Apple Authorised Resellers, the stores are no larger than 46 sqm and are distinct from the company-owned outlets Apple plans for India.

It is a format through which the company plans to widen its presence in high-rental, high-street locations in large cities, neighbourhoods and tier-two and -three markets, say senior trade partners.

Such stores have been set up in Bengaluru, Chandigarh, Mumbai, the National Capital Region (NCR) and Pune. In the NCR, the stores can be found in Gurgaon’s Galleria Market, Malviya Nagar, South Extension and Vasant Vihar.

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What this means

Apple's aggressive franchise expansion in India, distinct from its company-owned outlets, is a pragmatic move to penetrate diverse markets rapidly. This strategy directly pressures Samsung, which already has a strong retail footprint in India, and positions Apple to better compete with Chinese rivals in lower-tier cities. Unlike Skims' exclusive collaboration with Reliance Retail for its India launch, Apple is using a more distributed, smaller-format approach, indicating a belief in localized saturation over flagship exclusivity. The primary risk lies in maintaining brand consistency and service quality across a fragmented franchise network. We will track the announced six-fold expansion, specifically the number of new stores opened over the next 12 months.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

What is the primary goal of Apple's new franchise store initiative in India?

The US electronics company aims to challenge Samsung and various Chinese competitors in the Indian market. This strategy is part of a broader effort to expand its presence significantly across the country.

How do these new franchise stores differ from Apple's existing or planned company-owned outlets in India?

These new Apple Authorised Reseller stores are smaller, typically no larger than 46 square metres. They are a distinct format from the larger, company-owned stores Apple intends to establish in India.

Where are these new franchise stores primarily located within India?

The stores are positioned in high-rental, high-street areas within large cities, local neighbourhoods, and tier-two and -three markets. Locations include Bengaluru, Chandigarh, Mumbai, Pune, and several sites within the National Capital Region.

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