Batting for Apple’s plant in the country, a Google India executive today said overall smartphone industry would grow further if the iPhone maker sets up facility here and bring more India-focused products. “If Apple sets up a plant in India and are able to bring more products made for India, they might grow overall industry for smart phones, which will be good for overall retail,” Google India Industry Director Nitin Bawankule told PTI on the sidelines of release of a report ‘Digital Retail 2020’ by Google and AT Kearney. Also Read - Apple co-founder Steve Jobs' job application sold for over Rs 2.5 croreAlso Read - Apple iOS 15, iPadOS 15 beta 4 released: What’s new, how to download
Bawankule was replying to a question on how much of business sense does it make for retailers and e-commerce players in India if Apple sets up a plant in India. “Now, whether it will impact online or offline it doesn’t matter, I think, but if Apple decides to set up one such plant, it’s great for the industry,” he added. Also Read - Apple shines in June quarter, posts record sales for iPhones, Macs and iPads
The US-based giant plans to set up single-brand retail stores in India and has sought exemption from local sourcing norms on the ground that it makes state-of-the-art and cutting-edge technology products for which domestic sourcing is not possible.
Recently, Apple CEO Tim Cook visited India to push for India retail plans. He met Prime Minister Narendra Modi and discussed the “possibilities of manufacturing” and tapping the young talent pool in the country.
The telecom and retail industry are closely following Apple’s foray into the Indian market to understand how much business sense it will make for telecom, retail and ecommerce players in India, if Apple sets up an iPhone plant in India.
The report projects that e-tailing will become a substantial channel for the organized retail sector, contributing as much as 25 per cent of the total organized retail sales in by 2020 and will reach $60 billion in gross merchandising value, Bawankule said.
The report predicts that the total number of online shoppers will grow to 175 million by 2020 and one third of customers will drive two third of total online shopping spends, he said. As per the report, value added service will be a key differentiator and over 90 percent of the online buyers will be willing to pay for premium value added services, Bawankule said. Over 46 percent of online buyers said that they will be willing to pay extra charges for faster delivery and 37 percent for hassle-free return and 35 percent were willing to pay more for extended warranty, he said.
Google SEA and India VP and Managing Director Rajan Anandan said, “The e-tailing industry in India is at an inflection point and will touch 175 million online buyers by 2020. Having said that the next three to four years will be critical for the industry to get on the path of sustained profitability,” Anandan said.
“Innovative delivery models and creating omni-channel presence will help bring on board new online shoppers and help grow the overall share of e-tailing from the organized retail Industry in India,” he said.