Apple branches out in India
Tech brand’s new flagships in Mumbai and New Delhi highlight how shifting demographics are driving economic growth
#Week16 saw Apple bring its first stores to Indian shores, with the flagship opening in the financial capital Mumbai on Tuesday, quickly followed by a second ribbon-cutting in New Delhi on Thursday.
This marks a significant step in the tech brand’s expansion across the Middle East and Asia, following flagship openings in the UAE in November 2015, Singapore in May 2017, and Bangkok in November 2018.
Apple is something of a bellweather for positive placemaking and economic development, so it is interesting to see its ambitions for expansion in India, a country where it makes up just 5% of the smartphone market (Samsung is the dominant force). It is easy to understand Apple’s enthusiasm - Around 620 million of India's approximately 1.4 billion people own a smartphone, making India one of the largest phone markets in the world, as well as one of the biggest opportunities for growth.
Luxury and tech brands have been relatively cautious in their investment in India to date, but Apple’s move may be a significant indicator that the market has reached a tipping point.
With India set to overtake China this year as the world’s most populous country, the sheer size if its market makes it an exciting prospect for retailers generally. Economic growth is creating a burgeoning middle class armed with greater disposable income and the appetite for consumer products that comes with it. Predictions show that by 2030, nearly 80% of households will be middle-income, up from about 50% today. The middle class will drive 75% of consumer spending in 2030.
The average age of India’s population is also a key draw. India has one of the youngest populations in the world and this trend is predicted to continue into 2030. India’s youth is becoming richer and, much like the same demographic in advanced economies, prioritises premium brands and tech when it spends.
It is a story repeated across the globe, as young and increasingly affluent cohorts are the drivers of economic growth. In Saudi Arabia, around two thirds of the population is below the age of 35, and as a result much of the country’s investment and real estate development activity is focused on reaching this demographic. It is something Innesco has seen first-hand this week, during a visit to complete a series of workshops with the KSA’s Public Investment Fund. Apple, for what it’s worth, opened its first Saudi Arabian location in 2018.
None of this is necessarily new – leading brands have always ‘followed the money’ to a certain extent – but it does provide an indicator of where the powerhouse economies of tomorrow will be. Apple is one of the smartest operators going, and it has decided that now is the right time to commit to its own flagships in India. We can expect plenty of other brands to follow.