Insights and Hidden Opportunities

Observations in the World of “Computer” Retailing

Kirk BloedeNovember 1, 2012

Summary of Observations• Visited Microsoft, Apple and Sony stores (also B&O and Bose, plus

Williams-Sonoma)• Observed Sony and in particular Microsoft highly copied Apple in the

“physical” sense• But missed the “soul” of Apple

– Apple seems to provide a real working layout• Can use the devices to get work done, e.g., browse, check one’s email• Easy to interact with the devices• Superior lighting for the showing of the devices

– Microsoft feels like a very deliberate copy of Apple (a turn-off) • Sales people (SP) overly aggressive and wanted to control the usage and interaction

with devices, in particular the new Surface (6 different SP attempted to interact)• Devices were not as easy to understand and interact with• Xbox and gaming were the front window “eye candy” attempting to draw you in

– Sony while a copy was also much more “busy” in its layout• A little bit of everything … but more focus on big screen TVs.

Creativity and the History of Computer Retailing

• Computerland and later Businessland were two of the original computer retailers in the 1980s– Focused on educating what a computer was and why it was of value (now

much more about user experience)– Heavy training oriented (service around resolving HW/SW issues)– Printing (dot-matrix) was a strong element (no printers today – direction to a

non-print world)• Shift in the 1990s and slightly beyond to driving volume and lower cost

– The rise of Dell (build to order) and the death of computer retail– Role of technically educating the consumer in a store disappears

Creativity and the History of Computer Retailing

• Rise of the computer appliance, return of the retail store– Apple, the manufacturer, creates its own brand in retail– Against all conventional wisdom, Apple returns to retail store format, but in a

radically new model:• Now, the “education” is how beautiful everything is to see and touch and how easy

to use – the user experience• Store design is inviting, innovative (no cash registers, everything is out to be used

and interacted with, approachable, not shrink-wrapped on a shelf)• Highest sales per sq. ft. in retail today

– Apple’s store design is envied and copied by its most direct competitors, but they lack the unified brand presence and the overall retail experience is less pleasing

– The shopping experience is more like a conventional retail experience (e.g. Williams-Sonoma) – the product is a computer appliance, the customer is no longer threatened by its complexity and is drawn to its aesthetic qualities

Computerland (1980s)

• Message – it’s easy, it’s for all types of people, dedicated stations

• Task–oriented/business-like and more serious, not necessarily fun

Microsoft (today)

• Lots of screens and lights … bright

• Very obvious copying of Apple– Light wood floor, wooden

display tables, open design, liberal use of glass and color accents

– Products available to use– LOTS of sales personnel on the

floor– No cash registers

Sony (today)

• Busy layout, hard to find what you really what

• Loud music (ties to Sony’s history of video and music)

• Device displays brightly lit but dark areas for video/TV displays

Apple (today)

• Clean, crisp open design• Architecturally interesting in

many cases; careful attention to detail, visually inviting

• Lighting is effective but subtle; “cool,” not “hot”

• Store personnel are attentive but not intrusive

• Store design is dedicated to the user experience