Apple to Triple Reseller Network in India to 200 Stores by 2015

[MacRumors]

The Economic Times reports (via iPhone Hacks) that Apple is tripling the size of its reseller network in India by 2015, growing to 200 stores.

These franchisees, who did not wish to be named, told ET that they have been asked to scale up operations in the country as the Cupertino-based company plans to grow aggressively in the country. In addition to increasing the number of Apple exclusive stores, called Apple Premium Resellers, that are owned and managed by 17 franchisees, the company also plans to expand its presence in multi-brand stores, they said.

Some of these plans are said to have been discussed during last month's Mumbai visit of Hugeues Asseman, Apple's vicepresident (sales) for Europe, Middle-East, India, and Africa. Asseman met key trade partners and franchisee owners to take stock of the company's India business and to outline the company's expansion plans.

We first noticed Apple's expansion plans almost exactly one year ago after the company posted a job listing seeking a new national manager for the Apple Premium Reseller (APR) program in India, with the listing describing a "significant growth plan for the future".

Today's report also indicates that Apple has still been unable to find a way to open its own retail stores in India, given regulations requiring such single-brand stores to source 30% of their products from within the country.

Currently, the US company does not manufacture any of its products in India and the 30% sourcing clause could, therefore, deter it from opening self-owned stores. But it has asked its franchisees to upgrade Apple exclusive stores in India to global specifications, including designing, lay-outs, fit-outs, and is even sending its global suppliers to fit those stores. These outlets will have a lot of glass decor, which Apple uses at its company-owned stores in the US. The cost of refitting and redesigning each store is expected to be more than Rs 1 crore, which the company will reimburse the franchisee owners over a year, an Apple Premium Reseller franchisee said.

Late last year, Apple brought on two new distribution companies to assist with the company's iPhone business in India, an effort that resulted in a tripling of sales.

Apple has also been working to expand its content ecosystem in India, launching music and movies in the iTunes Store back in December and complementing that move with a February debut for the Apple TV.

Article Link: Apple to Triple Reseller Network in India to 200 Stores by 2015

 

[AppleGuesser]

Good luck with that. 200 stores by 2015 seems a bit over zealous.

 

[Popeye206]

The photo of the store looks very lack luster compared to stores in the US.

 

[Dwalls90]

Good luck with that. 200 stores by 2015 seems a bit over zealous.

It's not opening it's own, it's seeking reseller expansion (i.e. Target in the USA).

India is pretty big so this goal is aggressive but feasible.

 

[justperry]

Good luck with that. 200 stores by 2015 seems a bit over zealous.

Divided by 17 franchise holders is about 11 each so it could be easily done!

You know how big India is?

------

Business in India and their laws is still difficult, same as where I live now, after a few years you can't own a majority stake in a business here, have to sell 51% after a certain amount of years.

 

[Squilly]

Franchising surprises me. Yet I am very surprised Apple didn't enter the Indian market earlier.

 

[Tiger8]

Wonder what that means for the mid-tier iPhone.

Nokia 520 Windows 8 phone is a HUGE hit over there I heard.

 

[DipDog3]

Franchising surprises me. Yet I am very surprised Apple didn't enter the Indian market earlier.

Well India requires 30% of the products be domestically sourced, so that makes it hard for Apple to open stores in the country. They probably tried selling through the cell phone companies but realized that wasn't working either.

 

[AppleGuesser]

It's not opening it's own, it's seeking reseller expansion (i.e. target in the USA).

India is pretty big so this goal is aggressive but feasible.

Oh, I totally blanked on that. Yeah, ok, I retract my first comment This is totally feasible

 

[needfx]

I was going to make a current event remark, but decided against it. move along

 

[coolspot18]

Franchising surprises me. Yet I am very surprised Apple didn't enter the Indian market earlier.

India has a lot of red tape - foreign companies get buried in it.

 

[ArtOfWarfare]

Do APRs not qualify as "Single Brand Stores" and so not need to source 30% of their products in India? It seems to me their single brand is Apple and so they'd be subjected to the exact same rules?

I don't consider Walmart to be an APR...

Also, this sourcing rule seems really silly. I don't understand why you would want manufacturing jobs. Those are lousy jobs that you should try to keep out of your country and with whatever countries are most desperate for jobs.

 

[Dwalls90]

Oh, I totally blanked on that. Yeah, ok, I retract my first comment This is totally feasible

I read it that way initially too. They only have 400 retail stores worldwide, so 250 in India alone in 2 years or so definitely seems crazy

 

[adildacoolset]

Just give a good promotion for iMessage or whatsapp with the carriers; and give very affordable unlimited data plans, and you're set in India.

The prices should also be lower but I'm sure they can get by with selling the 4S and 4 at dirt cheap prices.

 

[x5tuu]

looks like all the looky-likey stores in Thailand, quite similar market as well.

 

[Born Again]

i hope no women are beaten in the making of this reseller network

 

[Navdakilla]

Apple will be in India how it was in North America a few years ago, a high end product that everyone talks about, but few own. Nowadays everyone had apple stuff around here

 

[Thunderhawks]

i hope no women are beaten in the making of this reseller network

No but plenty of raping going on over there, if you follow the news.
Doesn't even matter if the husbands or boyfriends are present.

Also, with restrictive policies for business (30%) how do they have the nerve to export their stuff without restrictions to US or worldwide.

 

[reden]

The photo of the store looks very lack luster compared to stores in the US.

What did you expect, a retail store in the Taj Mahal?

 

[Tankmaze]

so in 2 years for 200 resellers store. with India population, yea I can see that happening.

 

[ritmomundo]

I wonder how the poor guy pronounces his name "Hugeues Asseman." Imagine introducing yourself...

"Hi, I'm Hugeues Asseman."
"You're a huge ass-man?"
"Hugeues Asseman."
"I always figured you were a boob-man."
"No, I'm definitely an Asseman."

 

[liavman]

It looks like Apple is spending around $200000 per store. So they get to furnish 5 stores for a million dollars. TC probably carries all the 40 mil required in his back pocket!

If this works, Apple can afford to expand this out much wider. I have a feeling a country the size and population of India can easily take in double this number, even if the target market is only the top 20% of wage earners.

 

[FirstNTenderbit]

Do APRs not qualify as "Single Brand Stores" and so not need to source 30% of their products in India? It seems to me their single brand is Apple and so they'd be subjected to the exact same rules?

I don't consider Walmart to be an APR...

Also, this sourcing rule seems really silly. I don't understand why you would want manufacturing jobs. Those are lousy jobs that you should try to keep out of your country and with whatever countries are most desperate for jobs.

Wow, that's slightly elitist. Manufacturing job lousy? What's wrong with an honest days work for an honest days pay? Tons of people have worked in manufacturing and provided a good living for their families. Not to go all "bring our jobs back" but we could use some of those lousy jobs right here in the good ole US of A.

 

[j4zb4]

Well India requires 30% of the products be domestically sourced, so that makes it hard for Apple to open stores in the country. They probably tried selling through the cell phone companies but realized that wasn't working either.

The recent law allowing 100% FDI (Foreign Direct Investment) should work in apples favour here... I still don't know why they aren't going forward with their solo retail stores like everywhere else... They could open a few of them in the Metro cities atleast...

Do APRs not qualify as "Single Brand Stores" and so not need to source 30% of their products in India? It seems to me their single brand is Apple and so they'd be subjected to the exact same rules?

I don't consider Walmart to be an APR...

Also, this sourcing rule seems really silly. I don't understand why you would want manufacturing jobs. Those are lousy jobs that you should try to keep out of your country and with whatever countries are most desperate for jobs.

Select manufacturing jobs are good for us... We do have a hell lot of semi-skilled and unskilled labour which could use some employment at the moment...

I read it that way initially too. They only have 400 retail stores worldwide, so 250 in India alone in 2 years or so definitely seems crazy

They aren't talking about their own stores... But authorized resellers and sections in multibrand electronic stores a.k.a walmarts of India... I think thats quite possible considering the number of malls popping all around the country...

 

[marv08]

Do APRs not qualify as "Single Brand Stores" and so not need to source 30% of their products in India? It seems to me their single brand is Apple and so they'd be subjected to the exact same rules?

No, the Indian definition of a "single-brand store" really means a store operated by a single manufacturer. APRs like iStore are not owned by Apple, so the rules do not apply. (And they do not sell a single brand either, most accessories are not made by Apple.)

You really only find single brand stores in India from brands that do a lot of production there (Samsonite, Timberland, Hush Puppies, Burberry, Lacoste etc.). It is actually quite easy to tell. If anything is not priced a LOT higher than anywhere else, it is likely made in India. E.g. a Hugo Boss shirt in Mumbai easily costs 300% of what it costs in Europe, while a Lacoste polo shirt is 20-30% less.

Their protectionism is dead crazy.