Home appliances. India’s potential attracts international giants
Apple relied on third-party sellers and marketplaces stores in India for 10 years. However, the U.S. giant (sales of US$260.2 billion in 2019, – 2%) has now decided to invest in direct retail. In the 3rd quarter of 2020, Apple aims to launch direct e-commerce operations in India. The firm announced the opening of a first physical store for 2021 without revealing a location. C.E.O. Tim Cook reported to the latest shareholder meeting that India is the world’s second largest market for smartphones. However, the country accounted for only 0.55% of Apple’s revenue in 2018, compared with 20% for China. According to Counterpoint, Indian smartphones sell for US$150 or less. To avoid India’s import duty on electronic items and therefore reduce its selling price, Apple opted for the same strategy as Chinese competitors. For 2 years, suppliers Foxconn and Wistron have been assembling Apple smartphones in India.
In December 2019, the British retailer Dyson, (with headquarters in Singapore following Brexit), also expanded retail operations with a 5th store for Mumbai in the Palladium High Street Phoenix.