Firstly, several brands, especially the ones which have an ecosystem to offer by way of products and services will speed up their roadmap of opening up coco (company owned company operated) retail stores across major cities of the country. The brands which have a wide portfolio of products to offer include Samsung<\/a>, OnePlus and Xiaomi<\/a>. These brands have a range of smart products to offer along with a few services. So for them, it makes a lot more business prudence to let potential buyers experience the entire portfolio in an environment and ambience that they want their brands to resonate with.
However, this is not the main implication of Apple’s opening up of stores in India. The event will renew the outlook towards retail across smartphone brands and they will think of setting up future stores without going by the existing thumb rules and industry conventions. The biggest change that we should see is the number of people employed in these stores.
So far, brands usually measure the business performance of a store and accordingly, decide how many retailers should be placed in a store. Similarly, in a multi-brand store, the brands provide in-store promoters basis the business volumes. The biggest of the brands do not generally deploy more than 3-5 in-store promoters even in big setups like large format retail stores. On the contrary, Apple has employed 100 people for its BKC store. Going by the industry norms, 100 people for a 20,000 sqft facility is on the higher side. However, the business that this store is likely to do should justify these numbers.
The point to learn here is that Apple isn’t looking at these stores from a conventional business performance prism. It is instead positioning these stores as experience and learning centres, where all are welcome; many will become customers. Here the business pitch is not a direct one. This is a major difference in the positioning of these company-owned exclusive stores when compared to other brands, where the outlook is still transactional and business oriented.
Apple understands that its products will always remain across various channel formats including online and offline. So, if it is just about selling products, then its exclusive stores will come in direct competition with others only to create channel conflict and also impacting the return on investment on these retail stores. The same holds true for other brands also, who will now start seeing the things in this perspective.
The opening up of Apple BKC<\/a> and Apple Saket<\/a> will trigger this thought across the industry which will look at the company's exclusive retail stores afresh. The other learning that the smartphone industry will definitely try out is about adopting a richer sustainability and inclusivity design philosophy. These brand ‘conversation corners’ will generate lots of conversations around technology, professions, creativity and fun. At the same time, they will showcase the future of spaces that emphasize sustainability and inclusivity.
Retail investment is among the few very areas to exhibit a commitment toward a market. Apple stores<\/a> in India will stir a new drive among the smartphone brands in the country to further their commitment. Other than Apple, brands like Samsung<\/a>, OnePlus, OPPO, Vivo, Xiaomi<\/a>, Realme<\/a>, Lava, Nokia, Motorola, and several others have been treading on this path. Its only that their pace will go up now.
(DISCLAIMER: Views expressed are personal)<\/em>
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