Google Plans First International Retail Expansion Beyond The US, Closing In On New Delhi, Mumbai

Google is preparing to set up its first physical retail locations outside the US, with India emerging as a choice for this expansion. The tech giant is in advanced negotiations for store locations in the country's major metropolitan centres, according to sources familiar with the development, according to a report by news agency Reuters.

Google's retail plans for India represents a significant step in the company's $10 billion investment commitment to the country. The company is mulling to set up premium retail spaces of approximately 15,000 square feet, with initial locations targeted in New Delhi and Mumbai. While Bengaluru was considered, the focus remains on India's political and financial capitals, the report added.

These retail locations will showcase Google's hardware portfolio, including Pixel smartphones, watches, and audio accessories. The strategy is similar to Apple's retail approach, which has proven instrumental in building brand presence and driving premium product sales globally.

The timing of this expansion is notable as Google has recently begin Pixel smartphone manufacturing in India. 

However, the company faces significant market challenges, particularly in the premium segment where Apple currently holds a dominant 55 per cent share of devices priced above $520, compared to Google's 2 per cent presence, according to Counterpoint Research data.

The retail expansion awaits standard regulatory clearances, with sources indicating one potential location under consideration in Gurugram, as per the report. The stores are expected to begin operations within approximately six months, though timelines remain subject to adjustment.

Unlike Apple iPhones, which are super premium, barring the new iPhone 16e, Google's pricing strategy positions its Pixel phones between $370 and $2,000, competing in a market where Apple's iPhone lineup ranges from $520 to $2,130.