RSSMust Microsoft Store copy Apple Store to succeed?
By Joe Wilcox | Published November 2, 2009, 3:11 PM
Over the last 10 days, Microsoft has opened two retail stores, in Arizona and California, and a café in France. Bloggers and journalists largely dismissed the retail outlets as Apple Store knock-offs, which is surprising considering reports of 1,000 or more people lined up for the second opening in Mission Viejo, Calif. That said, the numbers aren't confirmed and a free music concert likely bolstered them.
Over the weekend, ifoAppleStore chronicled the Mission Viejo-store opening -- albeit with some pro-Apple, anti-Microsoft commentary -- and large gallery of photos. From the text and pics, Microsoft Store similarities to Apple Store are obvious.
But striking physical similarities to Apple Store is no reason to dismiss Microsoft's retail efforts. Microsoft is getting into the retail business for pretty much the same reasons Apple did in May 2001. To succeed, Microsoft will need to make at least the same kind of commitment Apple did early days. Microsoft must open many stores quickly and be prepared to take losses -- even large ones -- to reap greater marketing benefits.
Microsoft must also advance its retail strategy for the right reasons, and none of them is about competing with Apple. My prediction: Microsoft's retail strategy will fail, if the only -- even primary -- objective is competing with Apple Store.
Shared Apple and Microsoft Problems
Common problems Microsoft in 2009 shares with Apple circa 2001:
1. Distribution: In 2001, Apple depended on major computer retailers and Mac dealers to sell its goods. But Windows PCs dwarfed Macs in most stores to near invisibility. In 2009, Microsoft relies on fewer chains, like Best Buy or Walmart; major computer retail partners -- Circuit City and CompUSA, among them -- are gone. TVs and consumer electronics dwarf Windows PCs in most stores.
2. Retail experience: In 2001, the Mac buying experience usually ended with a computer store employee recommending a Windows PC. Most employees either weren't trained to sell Macs or pushed what they knew -- Windows. In 2009, many electronics store employees don't know how to sell Windows in context of capabilities tied to TVs and other devices.
3. Digital lifestyle: In 2001, Apple wanted to position the Mac as a digital hub for photos, music, movies, the Web and other digital activities. Apple Store presented a place to showcase the Mac's capabilities -- something not happening in regular retail. In 2009, Microsoft wants to advance Windows as hub for three screens -- the phone, the PC and TV -- but retailers aren't effectively selling it.
4. Brand building: In 2001, Apple had a marginally resurgent brand. There was yet no iPod, and Mac market share was but a few percent. Apple Store created permanent presence where people could see Apple's brand and experience the Mac lifestyle. In 2009, Microsoft's brand is tarnished for many reasons. Among them: Ineffective retail experience, Window Vista debacle and security perceptions. Microsoft Store establishes a permanent presence exposing masses of people to the brand and Microsoft lifestyle.
5. Customer service: In 2001, Mac dealers and PC retailers determined the extent of Apple customer service. The Apple Store Genius Bar reclaimed the customer experience, by providing a place where Mac customers could get free technical support and even product replacement. Satisfaction endears customers. In 2009, Microsoft has little to no control over customer satisfaction, as retailers or hardware manufacturers provide most support services. By providing in-store training and technical support, Microsoft Store increases customer satisfaction by solving problems and, perhaps more importantly, by helping people get the most value from their products.
Commitment is the Only Way to Success
Microsoft probably should have opened retail stores three years ago. Perhaps negative Windows Vista perceptions would have been less. Timing is OK, with Windows 7 launching to more positive reception. But timing would be much, much better if concurrent with Windows Mobile 6.5 and Windows 7 launches Microsoft opened a dozen retail stores in the United States and one each in another dozen countries: Australia, Brazil, Canada, China, France, Germany, India, Japan, Russia, South Africa, South Korea and United Kingdom.
International stores risk more problems with existing dealers and retailers (what Microsoft calls "channel conflict") but they're necessary for revitalizing the company's brand, fighting piracy and offering localized shopping experiences. I've long advocated Microsoft retail stores as one of the most effective tools for combating software piracy, particularly in BRIC -- Brazil, Russia, India, China -- countries.
But Microsoft can only be effective enough, achieve the needed retail reach, by jumping in the lake rather than sticking in a couple of toes. Two stores is a losing tip-toe-in-the-water strategy. Microsoft must make the big splash, with the willingness to loose tens of millions of dollars. If the stores are viewed as marketing investment, top executives can justify early retail losses.
Microsoft launched Xbox knowing the console would lose money for years before achieving sustainable profits or gaining market share against Sony PlayStation. More recently, Microsoft has invested billions of dollars building out datacenter infrastructure or building up Web search. Microsoft's retail strategy needs this kind of commitment, otherwise it will fail.
Apple Store Double Vision
Is imitating Apple Store Microsoft's best strategy? The ifoAppleStore photos certainly show many striking similarities in terms of layout and design but not materials or colors. The browns and dark wood colors are particularly unsettling, unless Microsoft is trying to achieve some kind of collegiate feeling. It turns out that the Mission Viejo Microsoft Store is only 70 miles north of San Diego. I'll drive up there this week, take some photos and write up a real first impression blog post.
But, for today, based on the ifoAppleStore photos, I must express misgivings about where the California store appears to be too much a bad imitation of Apple Store layout and design.
Four years ago, for Betanews, I wrote commentary," iPod Shuffle: Apple Understated." I explained how Apple used understated design to emphasize product features and benefits. The approach applies to Apple Store. I wrote:
Apple retail stores are remarkably understated. The only bright colors are found on marketing material placed throughout the store. Otherwise, the tasteful stores are quite stark, so that the shoppers' eyes are drawn either to the colorful marketing posters and signs or to the products on sale.
By comparison, many retail stores are overly cluttered, with Walmart being one of the obvious examples. Shoppers' eyes are wildly drawn here, there and everywhere. There is confusion, which can leave shoppers feeling unsettled.
Apple Store is inviting for the good feeling its understated design generates. This essence is more than just layout, but in the quality of materials, too. Then, there are those low tables, which give shoppers a clear view of the whole store, draw their eyes downward to products and create a cheery feeling of breadth and openness.
Can Microsoft do as well or better with its retail stores? My initial reaction is alarm, after reviewing the ifoAppleStore photos. Perhaps I will feel better after spending time in Microsoft Store. But I will say that a bad Appe Store imitation is better than nothing. Microsoft should have opened retail stores years ago. The branding and marketing benefits outweigh risks of channel conflict.
By waiting, there is some advantage in timing. In the United States, the commercial real estate market is in early stages collapse, like the homeowner market in late 2007 and early 2008. Commercial foreclosures and otherwise higher-than-normal store closings will give hard negotiator Microsoft chance to get good locations under favorable leasing terms. I say, "Go for it, Microsoft." Do you agree or perhaps have opinion about Microsoft Store similarities to Apple Store? Comments await you.
Joe makes a nice mix of true and BS points to reach a wrong conclusion. MS will win the public perception of "better-than-Mac quality products" because the Windows/Microsoft world is the better option even in the high-end spectrum, for the next 10 years to come (at least)... 95% of EDUCATED, RICH shoppers would pick a highly optimized and fully-3rd-party-software-loaded- Windows 7 machine plus "Win" player/mobile phone, especially in the coming years when WinMo eats everyone else DESPITE the "pulled out of their arse" predictions from THE IDIOTS OF ALL "RESEARCH" COMPANIES IDG ETC.
The only problem has been that traditionally, 99% of PCs sold with Windows on it are el cheapo crapware loaded with even el cheapo-er and crappier software that effectively subsidizes the machine further (trial program this, trial that). It brings technology to the masses, but obviously makes a bad impression on the "upper class" clientele...
Anyway... My responses to Joe's specific points:
1. These days people buy technology online. Every year more and more people don't give a crap about actually feeling the product and are very happy to just see 10 pics of it from every angle on Amazon before pulling out the credit card... The ignorant bas****s are fewer and fewer, and even those that wanna "feel" or "test drive" some product are gonna go back home and order it online to save a buck. Distribution in 2009, and clearly in 2014, is totally meaningless.
2. Again, people today don't buy crap based on some sales rep suggestion. This isn't 1995 with knowledge of where and how to build the best bang-for-buck machine bestowed upon only the zealots of pricewatch and computer shopper. The internet has made shoppers wiser and even if they're dumb themselves, they know of many tech-savvy friends (not computer geeks - just average intelligence "common" people who can google) that can give them a quick yay/nay on any product. It aint hard to google "product_name review" or "product_name problems" or "'better than' * product_name". Or of course, go to the oracle of all consumerism = amazon.
Etc etc... (too tired to continue) ;)
BTW, Microsoft would have to be RETARDED to spend money on luxurious stores in China and Russia. These people can hardly afford enough to eat. Those that are rich, are extremely rich and could afford to visit a Mac/Microsoft Store in NY... There's not gonna be Windows/Office piracy problem anywhere in the world in the coming years. Windows 7 and Office 10 will be impossible to pirate due to constant contact with mothership (I'll briefly explain: a new download from MS can contain a hardware profiler that will flag your BIOS-faked pirated copy as MISMATCHING TO THE HARDWARE YOU'RE SUPPOSED TO HAVE FOR THAT FAKED-OEM-LICENSE). Of course, only 0.001% of people here (and everywhere else in the techy world) are intelligent enough to understand that... Piracy always was always will be possible? PRIMITIVE THINKING FOOLS. Initializing dream wake-up sequence...3..2..1..
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|Joe, I have a question on this - with more people on the web and tuned into the "blogosphere", is the perception of Microsoft copying Apple in terms of stores as bad for the brand as the presence of the stores is good? Does anyone actually know or care outside the geek world?
Personally I think it's not so much that Microsoft copied Apple with the stores, I think it's more that Apple just got it so right that there's no escaping it. And to paraphrase Jonathan Ive, when you get design right then it should not be "oh wow, look at that" but rather "yes of could it's like that! How / why the hell could / would you do it any other way??"
Side track: that to me has been Apple's biggest impact on competitors in some cases. They get something so right that others either follow suit - because it is right after all - in which case they just look like Apple copies re-inforcing Apple's brand, or do something different just for the sake of being different and thus end up with an inferior result...
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|Seriously, you all need to shut up or I'll log in as a guest in Snow Leopard and erase all of you.
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|**FAIL** You're almost as good at trolling as the king of all trolls, PC_Troll but you still need a little more practice.
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|I guess all those times reading his troll comments has not helped me that much. Trolling is just not in my blood.
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|Amusing, iTard.
Let's review:
My posts in this thread: 4. One of them is an insult to a spammer, the rest answer questions or provide reasonable on-topic opinions (including, god forbid, my rationalization behind them). (well, 5, now that I have to add a self-defense post against your pathetic "trolling" accusations)
Your posts in this thread: 3. Two baseless anti-MS trolls and one insult towards someone who didn't know Stevie was behind NeXT.
...and you're calling me the troll?
How cute...
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|I just visited the Store in AZ- ITS DISGUSTING! I asked the assistant manager if they were embarrassed! They even have brightly colored tees of different colors and wear lanyards!!!!!!!! I mean come on how obvious is it to wear the lanyards? They even use the SAME WOOD FINISH on the tables! But he looked at me with this fake puzzled look and said "eerrr- I can see how there are SOME simularities- but it's not a copy". What a joke- let's be authentic for a second. It's bad enough to copy but it's Bill Gates esk to then pretend like you are NOT copying!
The worst part was the giant poster on the wall that said "Infinite Possibilities- Millions of Applications" with tons of little program logos flying around- ALMOST AN IDENTICAL COPY of the iphone's poster at the Apple stores that has the apps flying around and says "Thousands of Apps- infinite possibilities".
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|None of this should surprise you. Microsoft has a notorious rep for copying all things Apple (http://tinyurl.com/yw9573 and http://tinyurl.com/ykengq). It really is disgusting for one company to outright copy almost every element of another company. It really shows you just how low class and tasteless Microsoft really is.
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|They must copy the apple app store. But maybe they could do it better. Like not allowing meaningless apps like "make believe beer drinking". The apple app store is great but filled with useless crap no one really needs.
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|this article is about retail stores, not the app store
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|If Microsoft is going to make their own computers it would be nice if it exclusively used EFI instead of the BIOS. There are hardly any operating systems anymore that don't fully support EFI.
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|Microsoft has always copied Apple to succeed. Nothing new here. In fact without Mac OS X, Windows users would still be on Windows 98.
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|If not for Commodore / MOS Technologies, today the "Steves" would probably be thinking to themselves "Gee.. we need a bigger garage!"
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|OS X is not even originially from Apple. It was acquired from Next.
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|Do a little research on who was behind NeXT, atrius. You might be surprised...
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|LOL, you took the words right out of my mouth! I was just getting ready to same something along the same lines to that moron.
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|Yeah, that statement was just a bit amusing. Thankfully, there was no coffee involved.
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|OMG, are you really that retarted?! Yes, Microsoft copied Apple who copied IBM, who copied Xerox... If you are going to bash, bash fairly... I have yet to see a single, meaningful post from you.
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|Joe, you did a good job of encapsulating all the reasons why Apple needed to/wanted to open their own retail stores but typical MS, they only see "success and think by emulating it close enough on the surface, slapping their name on something means they will win except that MS has ZERo consumer successes since 1998 - essentially the post internet era - and its fitting that their internet division lost $700 million dollars - what does that say about a technology company that not only can't turn a profit on the internet but is $700 million in the red? XBox? They have spent about $30 billion to make $16 billion, that is not just bad math but a bad deal for shareholders. WebTV, home media PC, WinCE, winMobile, MSN, watchOS, Bob, plays4sure, Vista, Zune ... the list of FAILURES is staggering - how many other companies are essentially ZERO for 11 years in product launches? Basically, their 90% margins on the enterprise side pays for these follies so instead of MS being a brilliant enterprise software company, they are an inept consumer company ... and frankly, the stores won't help because unlike Apple, you really expect them to offer tech support for every PC ever sold? Apple will try and fix any mac even out of warranty - obviously if it needs hardware to fix, you need to buy the part. Will MS really be launching world class products every year such as imacs, iphones, ipods, etc, etc ... to keep up the buzz and excitement?
MS through its inactions has branded its own OS as a "free" OS you get with a computer (who pays $299 for an OS on a $399 computer?) or the OS of 120,000 viruses and shutdowns? Or the 50% fail rate of Xboxes?
Ms has poisoned its own name and is now living on borrowed time. In 8 years, they will be a fine enterprise company but will be licensing out its name like Xerox or RCA to Tv cables, breath mints and energy drinks for consumers.
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|Wow, fanboy much? Apple apple apple...You do realize Apple has a ton of failures too right?
http://www.networkworld....e-disasters.html#slide2
There's 10, you can find the rest on your own...
Ipod wasn't a success until 4 years after it came out, also the idea was taken from creative...
No idea where you are getting 30 Billion from...
Most of the devices you spit out have been used in multiple devices and growing
WinCE is used in all sorts of different portables/mobile/and media functions one example is At&t Uverse uses Windows CE for its OS.
While Win mobile is faltering its still not a failure as its still got a pretty big grasp
Plays4sure is still around but its been modified, granted it doesn't work with existing tech but still exists...
One final point, Competition is a good thing, if MS does this then that means Apple has to do more as well, its a win for the consumer, no idea why you have such hatred for a company, grow up.
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|LOL! Boy did terminalx have to dig deep for apple failures! Most of those failures are from over 15 years ago! Haha what a joke! The cube and hockey mouse weren't even a big deal because Apple was blowing up at the time- and the ipod hifi is a great product. Lisa? The newton? It's funny also that almost every failure of Apple's was them sticking their neck out on revolutionary products way ahead of their time - but Microsofts failures happen on products like VISTA that are rip offs to provide 1/100th of OSX's experience years after Apple released them. Most of Apple's revolutionary products are a HUGE success though (the personal PC, iPod, much of the GUI, Color monitors, all-in-one computers, iphone). When's the last time Microsoft made a revolutionary product?
Could you imagine apple coming out with a new operating system and 3 years later over 85% of their users are still on the predecessor- and they had to demand that manufacturers quit putting the old OS in their computers? Or could you imagine Apple coming out with a new OS and saying that it has the best functionality from an OS 2 generations ago combined with their predecessor (like Windows 7)? Could you imagine Apple knowing that there is a worldwide virus problem that could be solved by simply prompting for a Username as password and waiting for a new OS to implement it- or could you even imagine them not coming out with an instant free update to fix it? XP STILL doesn't prompt!
What a joke. Comparing Windows to Mac OS is like comparing Tata's $1500 car to a Rolls Royce- and if Rolls Royce invented shock absorbers / radio / power steering and Tata then steals them why dispute it? (I'm obviously not saying Tata did)
Know the history of those two companies and you'll see Microsoft never pretended to make quality products. MS DOS was never even meant to be used! Gates bought it from a dude he didn't even know working out of his garage and the guy warned him it was horrible- but they didn't have money to buy anything else! As pretty as the facade may be today (copied from OSX) it's still just MSDOS- never meant to be used, full of holes, and every update since has been to either hide or work around those facts. Let's be honest- if you were a WIn 95 user and woke up the next day on Win 7- would you really be that surprised? What would blow you away? Probably only the decrease- not elimination- of random inexcusable problems.
Competition is a good thing, but there is no real competition between Apple and Microsoft. They are in completely different leagues.
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|Another fanboy rant? Seriously? Had you looked you would see two recent failures of Apple's and there's more you can look for yourself. We get it you hate MS but trying to state that Apple is gold, you really are delusional.
If we are talking looks, Apple has looked the same since System 8 - the difference is eyecandy and the dock but essentially its still the same if we are going to play the compare game.
Apple is stable not because of the OS but because of the hardware - it can have the exact same problems and be just as unresponsive as Windows. Most problems in Windows is caused by a third party.
Viruses exist on Windows and will continue to as its the dominant platform it holds 92.26 in Marketshare compared to 5.27 for a Mac. When Mac becomes the dominant platform you honestly believe it will be virus free? If it was hacked before all other Operating systems I cant imagine a virus would be that hard on a 92.26 Mac fanbase.
Windows stopped using MS- DOS after Windows 2000 in their OS - A command line does not mean MS- DOS exists still FYI - In XP it uses a virtual DOS Xp is based on the Windows NT system and does not use DOS as a base OS and so on and so forth.
Also I don't see how Microsoft could copy OSX when it looked nothing like it and still doesn't - because it uses transparency and nicer interface this is copying? Plus XP came out in Oct 2001 but MS has always beta tested their software for at least a year and OSX came out in March 2001 so how exactly could MS change everything from there? Anyone remember the betas, I don't unfortunately.
"Could you imagine apple coming out with a new operating system and 3 years later over 85% of their users are still on the predecessor- and they had to demand that manufacturers quit putting the old OS in their computers?"
Yeah, Apple did that you call it Snow Leopard, there has been nothing but problems with it, they released one service pack right when it came out and service pack 2 is in testing. Also they made it so hardware from 2006 would be obsolete as power pc users cannot upgrade to snow leopard. Whereas a PC 5 years old will run Windows 7...
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|@bsgraupner The Cube failure was HUGE at the time. In late September 2000, Apple issued an earnings warning because of excess inventory, with Cube the major culprit. Apple shares plunged about 50 percent in the 40 hours following the warning, continuing downward in later trading.
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|!!!! Windows' problems have just been the result of 3rd parties? !!!! Apple's system has looked the same since 8? !!!!! Windows 7 can run on some sort of fantasy PC that is still working from 5 years ago let alone meets the workable system specs?
That's some pretty revealing and embarrassing stuff there!
I suppose fanboy could be defined as consistent denial of widely known facts. Arguing with you is like trying to argue with a dining room table. Enjoy your PC's In the terminalx reality I'm sure they work *just great* lol!
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|Has Betanews suddently adopted Newspeak or does Wilcox get some special pass from BN's editors? Dropping the word "the" from "the Apple Store" is not proper - nobody refers to like that, not even Apple itself. Too much texting, perhaps? That aside, I do agree with many of Mr. Wilcox's (glaringly obvious) points. As for the design of the Apple stores, that was borrowed from nearly every major computer chain store of the 90's. Microsoft is even worse, having yet to produce an original idea in its history. But as many would say, its not about originality, its about presentation and marketing. Microsoft has shown itself to be dismal at the former and fairly good at the latter, so cut-n'-pasting Apple's design would probably be its best hope of success.
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|There's another series of tips at this post: http://bit.ly/1ZkTV5
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|Please die, won't you?
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|May your death be as utterly unpleasant as possible, spammer.
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|The answer is No. I think MS has a better "home integration" story to tell than Apple. MS can demo some really cool technology that Apple cannot.
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|Nope.
Microsoft should focus on the differences, not the similarities. Choice, quantity, and customization.
Sell everything. The parts that work best with Windows products and the software that works best.
Only WHQL devices and certified software so that you can be virtually guaranteed, "If you buy it here, it will work."
Then market the hell out of it. Basically a "Windows Only" Micro-Center....with better support and fewer cheap-o "gadgets".
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|Thats kind of what they are doing, it has what MS is calling their signature pcs and no bloatware on them! Multiple manufacturers but their hardware is considered worthy so it will appear
Also Zune Integration is on display
Xbox360, Computer software, Games, Surface.
They have an area where you can get answers about your purchase and get a 15 min presentation on your new purchase.
Sure, it was borrowed from Apple but EVERYONE borrows from one another, if no one used someone else's idea and made it their own, we would never advance and still be going at a monochrome display typing in BASIC.
Also apparently it had some elaborate wall monitor setup too
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|Also, you don't ever hear this nonsense with ANYONE else, like OMG Best Buy totally copied Circuit City or OMG Walgreens and CVS totally stole that idea from Insert name brand store....
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|LOL!
http://www.pcworld.com/a..._from_apple_stores.html
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|That's because Walgreens and CVS don't have inspired customer bases, customer loyalty, have exciting products that interact with their customers every single day and didn't hire the same exact guy to design their stores. Best Buy and Circuit City had completely different retail experiences just like Home Depot and Menards. Are you really so stupid to think everyone is crazy for noting the similarities? This isn't about "The Apple store has power plugs and so does the Microsoft store" or "there's a tech support area in both stores."
How many competing retailers do you know that have the ALL of these things exactly the same: 100% glass storefronts, theaters, finishes on the furniture, finishes on identical wood floors, color-coded long sleeve teeshirt outfits, LANYARD NAMETAGS, had the same person develop their entire retail strategy (George Blankenship), specifically target the competition's employees for hire (http://www.tuaw.com/2009...ng-policy-shop-at-apple/ or http://www.ibtimes.com/a...ers-and-sales-staff.htm), or almost the exact same store posters (see apple's iphone app poster vs Microsoft's Infinite possibilities millions of apps poster).
No one is hiding that they are copying and you seem to be the only one in denial!
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|That's because Walgreens and CVS don't have inspired customer bases, customer loyalty, have exciting products that interact with their customers every single day and didn't hire the same exact guy to design their stores. Best Buy and Circuit City had completely different retail experiences just like Home Depot and Menards. Are you really so stupid to think everyone is crazy for noting the similarities? This isn't about "The Apple store has power plugs and so does the Microsoft store" or "there's a tech support area in both stores."
How many competing retailers do you know that have the ALL of these things exactly the same: 100% glass storefronts, theaters, finishes on the furniture, finishes on identical wood floors, color-coded long sleeve teeshirt outfits, LANYARD NAMETAGS, had the same person develop their entire retail strategy (George Blankenship), specifically target the competition's employees for hire (http://www.tuaw.com/2009...ng-policy-shop-at-apple/ or http://www.ibtimes.com/a...ers-and-sales-staff.htm), have almost the exact same store posters (see here http://www.flickr.com/photos/mattpippen/3415036521/ and here http://microsoftstore.po...side-the-microsoft-stor) AND even have the exact same store opening ceremony! (see http://www.cultofmac.com...-of-apples-stores/19429)
No one is hiding that they are copying and you seem to be the only one in denial!
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|Here is an apple store opening: http://www.youtube.com/watch?v=UUqKPuEHuu8
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|I forgot to mention handheld cash registers. However to pre-empt the touché comment Apple does currently use windows based handheld dvices (from 2005 - before there was an iphone- iphone register currently under development) Haha
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|This one is for Terminalx: http://www.appleinsider....spired_by_mac_os_x.html
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