New Delhi: Alphabet Inc.’s Google is in the final stages of selecting sites in India for its first physical retail stores outside the United States, according to three sources familiar with the matter.
India, a crucial growth market for Google, has been a major focus of its expansion strategy, with the company committing to a $10 billion investment in the country. Currently, Google operates only five physical retail stores—all in the U.S.—which sell its flagship products, including Pixel smartphones, smartwatches, and earbuds.
By launching its own retail outlets, Google aims to replicate Apple Inc.’s strategy of using company-run stores to strengthen brand presence and drive sales. Apple, which operates more than 500 stores globally, has seen immense success with this model over the past two decades.
New Delhi and Mumbai Emerge as Key Locations
According to sources, Google is in advanced discussions to establish retail stores in or around India’s capital, New Delhi, and its financial hub, Mumbai. A final decision is expected soon, but the exact locations remain confidential.
While Bengaluru, India’s tech hub, was initially considered, New Delhi and Mumbai are the leading contenders, one of the sources said. The planned stores are expected to be around 15,000 square feet and could take at least six more months to open, though timelines are subject to change.
“The idea is to compete with Apple, especially in the premium segment,” the source added, noting that Google may expand further if the first stores perform well.
Apple’s India Expansion a Key Factor
Google currently sells its products in India through authorized retailers, a model similar to Apple’s before it launched its own stores in the country. In 2023, Apple CEO Tim Cook personally visited India to inaugurate the company’s first two official stores—one in Mumbai and another in New Delhi.
Apple has made significant inroads into India’s premium smartphone market, with a 55% market share in 2024 for devices priced above $520, according to research firm Counterpoint. By contrast, Google’s Pixel smartphones hold just 2% of the premium segment.
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In India, Pixel devices are priced between $370 and $2,000, while Apple’s iPhones range from $520 to $2,130. To strengthen its foothold, Google has already begun manufacturing Pixel smartphones in India.
Regulatory and Compliance Considerations
Google’s store rollout is a firm plan, sources said, but it still needs to navigate regulatory and compliance approvals before setting up operations.
One possible location under consideration is Gurugram, a satellite city near New Delhi, where several multinational corporations—including Uber and Meta—have offices, and major global brands like Uniqlo have retail outlets.
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However, Google’s India operations face ongoing legal and regulatory hurdles. The company is currently battling antitrust investigations into its in-app billing system and alleged market dominance in smart TVs.
Additionally, Google’s public policy leadership in India has seen recent shakeups. This month, the company’s head of public policy resigned, marking the second high-profile departure in two years from a critical role responsible for government relations.
