Google to Launch First Physical Stores in India; New Delhi and Mumbai Likely Locations

Alphabet Inc.'s Google is in the final stages of selecting sites in India for its first-ever physical retail stores outside the United States, according to sources familiar with the matter. This marks a significant expansion for the tech giant in one of its key growth markets, where it has already committed to investing $10 billion.

Currently, Google operates just five retail stores in the US, selling Pixel phones, watches, earbuds, and other hardware products. However, the company now aims to establish a strong physical presence in India, following a retail strategy similar to Apple Inc., which has over 500 stores worldwide.

New Delhi and Mumbai in Focus for Google’s First Indian Retail Stores

According to three sources, who requested anonymity due to the confidentiality of the matter, Google is close to finalizing locations in New Delhi and Mumbai, India’s political and financial capitals, respectively.

The first source revealed that Google’s retail outlets in India are likely to be around 15,000 square feet and may take at least six more months to open, though the timeline remains subject to change.

Bengaluru Considered but Not a Priority

While Bengaluru, the tech hub of India, was considered as a potential location, Google is currently prioritizing New Delhi and Mumbai. If the initial stores perform well, more locations, including Bengaluru, may be added in the future.

"The idea is to compete with Apple ... especially to target the luxury segment," said one of the sources, emphasizing Google's strategy to tap into India's premium smartphone market.

Why Google is Investing in Physical Retail in India

Google currently sells its hardware products in India through authorized retailers, much like Apple did before launching its own stores in Mumbai and New Delhi in 2023. The success of Apple’s retail expansion in India has likely influenced Google’s decision to set up dedicated outlets for its products.

Premium Smartphone Market in India: Apple vs. Google

India's premium smartphone segment—defined as devices priced above $520—is dominated by Apple, which held a 55% market share in 2024, according to Counterpoint Research. In contrast, Google’s Pixel smartphones held just 2% of the market.

Google's Pixel phones in India are priced between $370 and $2,000, whereas Apple’s iPhones range from $520 to $2,130. With Google’s expansion into local smartphone manufacturing, coupled with dedicated retail stores, the company aims to gain a stronger foothold in this lucrative segment.

Possible Store Locations and Expansion Strategy

Potential Locations in and Around New Delhi and Mumbai

The third source mentioned that Google is considering a location near New Delhi in Gurugram, a satellite city that houses offices of major global corporations like Uber and Meta. Gurugram is also home to premium retail brands such as Uniqlo, making it a strong contender for Google’s first store.

In Mumbai, Google is likely to pick a prime commercial area, similar to Apple’s flagship store at Jio World Drive Mall.

Regulatory and Compliance Hurdles

Before opening the stores, Google must navigate standard regulatory and compliance processes in India. “Google’s plan to open the stores is firm and will be executed soon, but there are some standard regulatory and compliance processes to clear before the stores can be set up,” said the second source.

Challenges Google Faces in India

While expanding its retail presence, Google continues to face regulatory and legal challenges in India. The company is currently involved in antitrust cases related to its in-app billing system and alleged abuse of market position in the smart TV segment.

Additionally, Google recently lost its India head of public policy, marking the second departure from the crucial role in two years. This role is vital for engaging with the Indian government on regulatory matters, and the absence of a permanent leader may present additional hurdles for Google’s expansion.

The Future of Google’s Retail Expansion in India

With a rapidly growing smartphone market of approximately 712 million users, India presents a massive opportunity for Google to expand its hardware business. If the initial Google retail stores in New Delhi and Mumbai perform well, the company may consider rolling out more outlets across major cities.

Google's entry into physical retail in India aligns with its broader strategy of increasing brand visibility and competing directly with Apple in the premium smartphone space. By offering a dedicated retail experience, Google can showcase its Pixel smartphones, wearables, and other devices while providing personalized customer service.

Conclusion

Google’s decision to launch its first retail stores outside the US in India is a strategic move to tap into a booming smartphone market and strengthen its hardware presence. By selecting prime locations in New Delhi and Mumbai, the company aims to compete directly with Apple and target the luxury smartphone segment.

Despite regulatory challenges, Google remains committed to its retail expansion in India, and with dedicated stores, local manufacturing, and aggressive marketing, it is poised to boost Pixel’s market share and establish a stronger brand identity in one of the world's fastest-growing tech markets.