of the employment. India is the world’s fifth-largest global destination in the retail space. India has the third-highest number of online shoppers (only behind China, the US). According to the foundation, new-age logistics players are expected to deliver 2.5 billion Direct-to-Consumer (D2C) shipments by 2030. Big brands The recent news surrounding Apple opening its first company-run retail store in India’s financial hub of Mumbai is an indication of how important the market is in this niche space.  For years, Apple products have been sold on e-commerce platforms such as Amazon and Walmart’s Flipkart and through resellers. Now things are changing in the world’s second-largest smartphone market, with nearly 700 million mobile phone users. And Apple is far from the only premium brand eyeing the opportunity. In November last year, Aditya Birla Fashion and Retail Limited (ABFRL) entered into a strategic partnership with French department store chain Galeries Lafayette to open luxury department stores and a dedicated e-commerce platform in India. Galeries Lafayette is renowned globally for its flagship location at Boulevard Haussmann in Paris. Its flagship stores in Mumbai and Delhi will bring more than 200 luxury and designer brands under one roof, with the 90,000 square foot flagship store in Mumbai expected to be operational by 2024. The 65,000 square foot store in Delhi, expected to be operational in 2025, will be at DLF Emporio, one of India’s largest luxury malls. It will complement the current offering at the mall with a set of young, exciting designer brands across multiple categories. A complicated scene According to Dr Seshan Ramaswami, associate professor of marketing education at Singapore Management University, the Indian retail industry is complicated, as indeed India’s overall market. “There are regional differences, huge diversity in tastes, income, culture and expectations across the subcontinent, and the Indian economy itself is in a flux, with predictions for growth and stability varying across the entire spectrum,” he told Inside Retail. In terms of Apple’s entry into the retail sector, he said this has been expected ever since the brand began its manufacturing operations in the country back in 2017. He believes the high retail standards of  Apple will have a significant impact on the general quality of retailing across urban India. “Indians in general have high expectations of retail service quality. For example, the traditional small retailer has always been very customer centric, maintaining personal relationships with consumers, and assuring a high level of quality, and after sales service,” he noted. Marketplace strategies Ramaswami did acknowledge that Apple products are only  affordable for a tiny fraction of Indians at the highest end of the market, but in a country of 1.4 billion, this still is a significant group. “The economist Raghuram Rajan pointed out that Apple products still cost more in India than they do in the US. That will likely have to change in the future if Apple hopes to make a significant dent in the Indian smartphone and laptop market,” he added. He feels that multinational luxury brands could either maintain their high prices to be on par with other global markets, or make a significant downward adjustment to Indian conditions. Both strategies could work, in his opinion. “A high level of after-sales service, such as offered by Apple stores worldwide, then would become the key success factor, requiring significant investments in training of retail staff and in design and maintenance of in-store environments,” he elaborated. The Indian consumer Ramaswami believes that the average Indian consumer is extremely value conscious, and in a country where labour is not very expensive, consumers expect personalised and high quality retail and after-sales service. Another factor that big brands need to be conscious of is the cultural nuances of the Indian marketplace. This can range from religious festivals to gifting occasions throughout the year, as well as significant purchases that happen during lavish celebrations and weddings. He observed that there is also a growing trend of nationalist feelings and pride in traditional Indian culture that is becoming more pronounced in the overall retail mix. E-commerce operations are also picking up in second and third-tier cities for high-end products. “A good example is Headphone Zone, which is able to sell high-end headphones across the country by investing heavily in customer service and organising periodic events and pop-ups for customers who travel long distances to experience these curated events,” he pointed out. Ultimately, Ramaswami believes that global brands can make it big in the country by customising their products based on research into consumer preferences and maintaining a high level of customer service in-store and in after-sales service. “Making the brand relevant year round by planning special promotions during Indian cultural events, and big sporting events such as cricket tournaments could all help big brands eyeing the Indian market,” he opined. He also feels the best route for big brands in India may be in partnering with existing operators who have deep experience in the country and designing an omnichannel strategy right from the launch phase.