Amidst the burgeoning demand for premium tech products in India, Apple is accelerating its expansion. The company is set to open its third retail store in Bengaluru, located within the Phoenix Mall of Asia. This follows the successful launches of its flagship stores in Mumbai's BKC and Delhi's Saket. Entering Bengaluru's high-tech market signals Apple's serious commitment to India.
Bengaluru Store: Size and Location
Apple's new retail store will be situated on the first floor of the upcoming Phoenix Mall of Asia in Bengaluru's Hebbal area. According to a Business Standard report, the store's size will be comparable to the Apple store in Delhi's Select Citywalk Mall. However, it will remain smaller than the expansive 20,800 square foot store in Mumbai's Jio World Drive.
While the exact square footage hasn't been publicly disclosed, sources suggest it will be a mid-sized outlet designed with the experience of local customers and tech enthusiasts in mind.
Rent and Lease Deal Details
Under the lease agreement, Apple will pay an annual rent of ₹2.09 crore (approximately ₹17.4 lakh per month). Furthermore, the company will operate on a revenue-sharing model, contributing 2% of total sales for the first three years and 2.5% thereafter to the mall management.
A cap has been placed on the revenue-based rent, limiting it to double the annual base rent. Additionally, the company has deposited a security deposit of ₹1.046 crore. Lease terms stipulate a 15% rent increase every three years.
Why Bengaluru is Crucial
Bengaluru is considered India's tech capital, boasting a large concentration of IT professionals, startups, and top tech companies. Opening a retail store here will not only strengthen Apple's brand presence but also provide a direct connection to the local market.
Apple already has a significant technological presence in Bengaluru through its development center, but this will be the first time it offers an exclusive retail experience to the general public in the city.
Apple's Rapidly Expanding Presence in India
This announcement comes after Apple hinted at its big plans for India during its recent quarterly earnings call. CEO Tim Cook referred to India as the "next big market" and indicated the company's readiness for long-term investment.
Following stores in Mumbai and Delhi, the Bengaluru opening, and exploration of potential locations in cities like Pune and Hyderabad, reflects Apple's strategy to enhance the retail reach of its premium products in India.
Record Sales and the Impact of Local Manufacturing
India is no longer just a potential market for Apple; it's becoming a significant contributor to the company's global sales growth. Local manufacturing of iPhones (particularly the assembly of the iPhone 15 series) and recent price stability have attracted Indian consumers to Apple products.
Furthermore, the success of the Apple Online Store and the expansion of services like Apple Pay have strengthened the company's position in India. Now, these initiatives are being supported by offline retail stores.
Apple's plans don't end here. Reports suggest the company is considering a store in Pune. Additionally, it's exploring other premium locations in the Delhi-NCR region and Mumbai. This indicates Apple's gradual expansion beyond metro cities to potentially include Tier-2 and Tier-3 cities in India.
Apple Stores: More Than Just Sales, an Experience
Apple retail stores are more than just outlets for selling mobile phones and laptops. They also serve as hubs for interactive sessions like 'Today at Apple,' live demos, and customer support services. These events were well-received at the first two stores in India.
Therefore, the Bengaluru Apple store will not only be a new sales point but also an experiential destination for the city's tech-savvy and creative users.
