Apple and Lafayette... Companies Flocking to India, the 'Next China'

French Galeries Lafayette to Launch Next Year
Apple Store 1st and 2nd Branches Opening

As an alternative to the 'Peak China' phenomenon, India is emerging as a new battleground for global companies. India is rapidly rising as the 'Next China,' serving both as a production base and a sales market. While China's competitiveness is declining due to business uncertainties caused by the US-China conflict and ongoing supply chain disruptions following the pandemic, India is expected to maintain high growth rates based on its rapid population increase.

According to major foreign media such as Axios on the 18th (local time), French luxury department store Galeries Lafayette plans to open its first store in the Indian market next year. Earlier, Dior, part of Europe's largest luxury group LVMH (Louis Vuitton Moet Hennessy), held its first fashion show in Mumbai, India, earlier this month, marking a continuous influx of global luxury brands into India.

American aircraft manufacturer Boeing recently signed a contract to supply 220 aircraft to India's state-owned airline Air India. The contract is worth approximately $34 billion (about 44.85 trillion KRW), but with an option to purchase an additional 70 aircraft, the total purchase amount could increase to $45.9 billion (about 60.54 trillion KRW). This contract is the third largest in Boeing's history by amount and the second largest by quantity.

On the 18th (local time), Tim Cook, Apple CEO, is taking a commemorative photo with a customer who brought a Macintosh computer to Apple's first offline store in Mumbai, India.
[Image source=EPA Yonhap News]

Apple is also shifting its Asian business focus from China to India. On the same day, Apple opened its first offline store, Apple Store, in Mumbai, India. The second store will open in New Delhi on the 20th. This move accelerates the de-China strategy not only in production bases but also in sales markets.

Apple CEO Tim Cook personally attended the opening event of the first store in India's political and financial capital. Foreign media evaluated Cook's visit to India as a sign that Apple is driving its business in India both as a production base and a sales market.

Foreign media reported, "With the opening of its first store in India, the second largest market in Asia, Apple is intensifying its battle with the existing dominant player Samsung to capture the premium smartphone market."

Apple had previously attempted to enter the Indian market several times but failed due to the local market characteristics dominated by mid- to low-priced smartphones like Samsung and low business viability. Prabu Ram, head of the Industry Intelligence Group at Indian market research firm CyberMedia Research, said, "Apple's growth in the high-end phone segment in India has been remarkable. Just 3 to 4 years ago, the iPhone's market share was only 1%."

According to CyberMedia Research, Apple iPhone sales in the Indian market this year are expected to reach up to 8 million units, with a market share projected to reach the 6% range.

The rush of global companies to India is driven by expectations of rapid growth in the middle class with purchasing power and the super-rich. According to global consulting firm Knight Frank, the growth rate of the super-rich population with total assets exceeding $30 million (about 3.95 billion KRW) was 39% in India (2018?2023), surpassing China (35%) and ranking first in Asia. India's super-rich growth rate also leads significantly compared to North America (17%) and Europe (18%).

Additionally, the middle-class population with high purchasing power is estimated to be about 66 million to 100 million, accounting for up to 7% of the total population of 1.4 billion. The U.S. Census Bureau announced that India's population has surpassed China's this year, and the title of 'the most populous country in the world' will shift from China to India.

The increase in population has also led to a surge in air travelers, driving an aviation boom in India. According to market research firm BMI, the number of air passengers in India has nearly tripled over the past decade.

Anusha Chari, a professor of economics and finance at the University of North Carolina, said, "Considering the speed and scale of India's population growth, India is a very attractive market for many multinational companies," and predicted that the influx of global companies into India will accelerate further.

This content was produced with the assistance of AI translation services.