Looks like two juggernauts in the gadget business are brewing some strategic wine as far as the placement of their ‘own brand’ stores is concerned. The names are familiar –Apple and Microsoft.
It may be dangerous to generalize, but we have noticed it more than once that the Microsoft is putting up their Window’s exclusive showrooms near to Apple’s retail outlets.
However, the move will be beneficial to Windows, because Apple’s retail stores are as popular as the name of the juicy fruit. That is not the case with Microsoft and its outlets.
Moreover, having both rivals closer in one spot helps the customers also since they can feel the difference in reality. For example, at the Westfield Century City mall in Los Angeles, both the stores are situated in such a way that you will notice the one store when you come out of the other.
Apple has clearly understood the potentials of an own brand retail outlets, that they can project the brand image to its maximum and can avoid competition for attention with other brands as in stores like Best Buy.
It will be easier for gadget makers to have a focused approach to the customer in own brand retail outlets.
Many major gadget makers have understood this difference now and are following the Apple path. However, the usual retail outlets will be suffering more from such moves from gadget makers.
Though not directly related, Best Buy has announced that it is closing 50 of its retail outlets due to poor performance.
Apple also will suffer slightly in the beginning with finding the attention getting shared. However, overtaking certain aspects of Apple’s customer care services will be tough task for Microsoft in long run.