Apple's Retail Push into China Still Limited, But Ramping Up

[MacRumors]

Back in February 2010, Apple's then-retail chief Ron Johnson noted during the company's annual shareholder meeting that it was planning to open up to 25 retail stores in China over the following two years. At the time, Apple operated only a single store in Beijing that had opened in time for the 2008 Summer Olympics held there.

Apple's IFC Mall retail store in Hong Kong

Well more than two years later, Apple still has only six retail stores in its Greater China region, with five in China proper and one in Hong Kong. And as noted by Reuters, Apple has more stores in Pennsylvania (eight) than it does in Greater China.

The shortage of retail stores and authorized re-sellers leaves ample room for unlicensed re-sellers to move in. Bad consumer experiences at these unauthorized shops are common and they run the risk of eventually eroding confidence in Apple's products, said David Wolf, chief executive of Beijing-based consultancy Wolf Group Asia.

If Apple doesn't expand its network of stores and authorized re-sellers, it "loses not only near-term sales, it also endangers the sustainability of its success in China," he said.

The report does not pin down the reasons behind Apple's slower-than-planned pace of retail store expansion in China, only suggesting that the company may be running up against bureaucratic hurdles that have complicated its plans.

Apple may, however, be nearly ready for a substantial expansion of its retail footprint in China, as M.I.C. gadget just yesterday posted a summary of six more stores that are currently in the works. Most of the locations have been discussed at one time or another in recent months, but the new summary provides a consolidated picture of what Apple's Chinese customers can expect. The forthcoming locations include:

- Shenzhen: One of Foxconn's major hubs for iOS device production, Shenzhen will see a new Apple retail store going in at the Yitian Plaza shopping mall, according to M.I.C. gadget. The report includes photos of a boarded-up section of the mall where Apple is rumored to be building a two-level store, with an opening predicted for late this year or early next year.

- Chengdu: Apple appears set to open two retail stores in Chengdu, another of Foxconn's manufacturing hubs in China. The first may open as soon as September in the high-end Raffles Square district while the second is said to be a major store opening at the MixC shopping center. That location may open in December.

- Guangzhou: Relatively few details on this location are known, but according to the report Apple is preparing to open a store in the Grand City Plaza district. Major renovations for the area have, however, yet to take place.

- Dalian: As we previously covered, Apple is said to be planning its world's largest retail store for Dalian in northeastern China. No details on an opening are yet known, but previous information suggested that work was indeed underway on the store.

- Hong Kong: In February 2011, reports claimed that Apple would be opening two retail stores in Hong Kong: a 15,000 square foot location at the IFC Mall by the end of 2011 and a 20,000 square foot location at Hysan Place by the second or third quarter of 2012. The IFC Mall store did open in September 2011, and M.I.C. gadget indicates that Apple should at least come close to meeting its target for the Hysan Place store with a late 2012 or early 2013 opening.

Article Link: Apple's Retail Push into China Still Limited, But Ramping Up

[Navdakilla]

Once Apple takes over China, it's checkmate.

[DisMyMac]

People shouldn't "push" into other places... They should be invited and behave as good guests there.

[jimsowden]

What's wrong with Pennsylvania? It's huge.

[shaunp]

While I hope Apple do well in China, at the same time I don't want them to have a monopoly. Everyone needs competition.

[thelookingglass]

Originally Posted by jimsowden

What's wrong with Pennsylvania? It's huge.

Nothing's wrong with Pennsylvania, just that the both the land mass and the population of Pennsylvania are a teeny tiny fraction of China's. China has 5 times more people than the US, yet one state in the US has more Apple stores than China.

These new stores are all sensible locations, except for Dalian. Shenzhen and Guangzhou are two of the richest cities in the country. Chengdu is clearly the financial hub of western China and is home to an increasing number of multinational corporations. Don't understand Dalian though. I would've thought Chongqing or Tianjin made more sense.

[Galatian]

Great...when is Berlin - the 3.5 Mio inhabitants counting capital of Germany - finally getting an Apple Store? Why do I have to deal with those idiots at Gravis? Seriously one of their repair guys wanted to tell me that just because my keyboard was broken the entire logic board had to be switched out. His reasoning was, after I wanted that to be explained, that when you hit a key it PHYSICALLY connects to the main board...Needless to say I just ordered a new keyboard (which included an entire upper case on the MacBook Pro by the way and costs you some 250€) and installed it myself. We need competent people fast!

[DisMyMac]

Originally Posted by Navdakilla

Once Apple takes over China, it's checkmate.

That's so 20th century... There is no war going on, and there needn't be any.

If Apple is the new opium, then yes, there could be a revolution. But it will be a nationalistic movement to remove foreign influence, not about opening more Apple stores.

[somethingelsefl]

Originally Posted by DisMyMac

People shouldn't "push" into other places... They should be invited and behave as good guests there.

I agree. Apple can only succeed in China if it sees the country as an "opportunity," not some country to be conquered with iPhones. Culture matters for tech companies. Just ask Google in China and Automakers in Saudi Arabia.

[reverie]

Most likely the problem is local corruption.

[charlieegan3]

Thats one cool looking Apple Store.

[Kwramm]

It's already conquered - extremely high iPhone density here in Shanghai. Everyone and their dog has a 4 or 4S. The Steve Jobs bio was available within days after it came out, ripped off and sold by book vendors with push carts on the street. Fake apple products en masse - other brands? They're too weak to even be worthy of a rip-off. If people want to start a revolution in China, just take away their iPhones.

What really sucks here though is that you get the feeling China is totally unimportant to Apple despite all the worship it gets from the Chinese. Everything gets made here and shipped from here, but guess who gets the all the new Apple stuff last?
China is Apple's "clearance sales bin" (except they don't lower the prices). While people were buying new 11" and 13" MBAs everywhere else in the world they happily sold off the stock of old MBAs here in China. The new MBA came like 3 to 4 months late to Shanghai stores. While everyone was waiting for the new MBA's to show up in the Chinese Apple stores the new units were sitting in Shanghai's container harbour waiting to be shipped off to the rest of the world.

Same thing with the MBPr. Yeah it's on the Apple China wesite, but it'll take months till it makes it to the stores. But maybe I'll pick up the latest iPad they sell here. They call it iPad 2.

[bharatgupta]

The shortage of retail stores and authorized re-sellers leaves ample room for unlicensed re-sellers to move in. Bad consumer experiences at these unauthorized shops are common and they run the risk of eventually eroding confidence in Apple's products, said David Wolf, chief executive of Beijing-based consultancy Wolf Group Asia.

If Apple doesn't expand its network of stores and authorized re-sellers, it "loses not only near-term sales, it also endangers the sustainability of its success in China," he said.

thats exactly the case here in India where non apple stores are ruining buying experience and apple quality support just isnt there, dear apple address this and make your customers happy.

----------

Originally Posted by Kwramm

It's already conquered - extremely high iPhone density here in Shanghai. Everyone and their dog has a 4 or 4S. The Steve Jobs bio was available within days after it came out, ripped off and sold by book vendors with push carts on the street. Fake apple products en masse - other brands? They're too weak to even be worthy of a rip-off. If people want to start a revolution in China, just take away their iPhones.

What really sucks here though is that you get the feeling China is totally unimportant to Apple despite all the worship it gets from the Chinese. Everything gets made here and shipped from here, but guess who gets the all the new Apple stuff last?
China is Apple's "clearance sales bin" (except they don't lower the prices). While people were buying new 11" and 13" MBAs everywhere else in the world they happily sold off the stock of old MBAs here in China. The new MBA came like 3 to 4 months late to Shanghai stores. While everyone was waiting for the new MBA's to show up in the Chinese Apple stores the new units were sitting in Shanghai's container harbour waiting to be shipped off to the rest of the world.

Same thing with the MBPr. Yeah it's on the Apple China wesite, but it'll take months till it makes it to the stores. But maybe I'll pick up the latest iPad they sell here. They call it iPad 2.

i agree with you, apple always treat themselves as premium product company in such countries but dont realize that they have a strong fan base here, same thing in india too

[apolloa]

Don't care what anyone says, the store in the picture on this article is the coolest Apple have ever made IMO.

[Blakjack]

That's one bad ars store in the picture? My new favorite

[bandalay]

Originally Posted by Galatian

Great...when is Berlin - the 3.5 Mio inhabitants counting capital of Germany - finally getting an Apple Store?

Dude - there's one nearly built, and second one in progress!

http://www.ifoapplestore.com/db/2012...ible-for-2013/

[palmharbor]

Its really of no consequence to the average mac user that apple is opening a store in a foreign country. This site has become more of a Public Relations site for Apple.

[Bezetos]

Still no Apple Store's in Germany, Poland...

[iMeanIt]

Originally Posted by palmharbor

Its really of no consequence to the average mac user that apple is opening a store in a foreign country. This site has become more of a Public Relations site for Apple.

It was apparently of "enough consequence" to this "average" user.

I'm happy to learn about Apple's expansion into other countries - I guess I'm "above average".

[Bubba Satori]

Originally Posted by Bezetos

Still no Apple Store's in Germany, Poland...

Anybody know why?

[Bubba Satori]

Originally Posted by Navdakilla

Once Apple takes over China, it's checkmate.

Thet were made for each other, so to speak.

[writingdevil]

Originally Posted by DisMyMac

People shouldn't "push" into other places... They should be invited and behave as good guests there.

Not "pushing into" situations may be 'good etiquette' as my old maid aunt used to tell us, though she was a bit socially inept, but this concept has absolutely nothing to do with national or international commerce. For an enterprise to enter a market (unless it's operating illegally) it must receive legal permissions to do so, giving them the right to operate there. The "invitation" comes from people buying products or using services.
I'm not sure who the post is preaching to, but China doesn't seem to have a problem having Apple invest in production facilities, employ tens of thousands of people with no income, pay taxes based on local laws, open other markets of production for tech firms following/trying to catch up with Apple and even 'contributing" 60 million dollars to a bankrupt company[COLOR="#808080"]

[pw1388]

Originally Posted by thelookingglass

Nothing's wrong with Pennsylvania, just that the both the land mass and the population of Pennsylvania are a teeny tiny fraction of China's. China has 5 times more people than the US, yet one state in the US has more Apple stores than China.

These new stores are all sensible locations, except for Dalian. Shenzhen and Guangzhou are two of the richest cities in the country. Chengdu is clearly the financial hub of western China and is home to an increasing number of multinational corporations. Don't understand Dalian though. I would've thought Chongqing or Tianjin made more sense.

Why you got to hate on Dalian for? Its one of the newer cites in China and a great vacation spot. I can totally see why apple would build a store there.

[DarkKnightNine]

I would like to know when we will see an Apple Store open in Yokohama (the second largest city in Japan by population) after Tokyo (which isn't technically a city, but a province). If all facts are considered, Yokohama is actually the largest city in Japan, yet we don't have an Apple Store here.

[tann]

Is 'China proper' what people officially call Mainland China?

China in general is a huge market, if Apple can do there what they've done in parts of the west then it'll be ridiculous!!!