Tuesday, October 27, 2009

Can the Microsoft Store last?


Yesterday, Microsoft opened its first retail store in Scottsdale, AZ. The grand opening seemed to be pretty successful with an estimated 500+ guests lining up for a first glance at what many have dubbed a "rip off of the Apple store".

While a huge grand opening is nothing to scoff at, I have to wonder if Microsoft can pull it off in the long-run.

Let me start by saying, I'm still a Windows guy. I work from an HP desktop running *cough* Vista and am anxiously awaiting my Windows 7 upgrade disc.

Let's start by looking at Apple. When I first started working in the CE industry, Apple held a measly 3% of market share in Canada. Less than 5 years later they had broken into double digits and continue to see an upward trend.

Though many attribute Apple's growth in the PC space to the iPod, there are a few other things that Apple did right. First off, they made their products simple and stylish. They backed the appearance with an easy to use, stable operating system. They topped this off with clever ad campaign but even more-so they educated the consumer.

Apple's retail success has been based on 2 key factors - education and connectivity. Apple makes their own hardware and software so everything is truly integrated. Yes, they force you to work within their walls, but the end result is a simplified and secured computing environment where things just work.

By setting up the genius bar and allowing people to explore the Apple OS, talk to true product experts and make an appointment for one-on-one support, Apple has made the experience so user friendly that it's no wonder people want their products.

Microsoft launched their retail store at a good time - to coincide with the launch of Windows 7, which has a lot to live up to. Consumers were pretty unimpressed with Vista (anyone remember Windows ME?) and giving them the chance to really get a feel for what Windows 7 can do will help revive consumer confidence.

What worries me the most about the Microsoft store is the disconnect between hardware and software manufacturers. The MS store is featuring products by both Dell and HP, which makes a great deal of sense, but what about other partners like Toshiba, Sony and Acer?

While Windows 7 does make connectivity super-easy between multiple computers, printers, xbox 360 and other devices, there are so many peripheral makers and so many add-on software tools from so many developers that it's no wonder a few poor download choices and your system starts to slow down and get errors.

Microsoft has tried retail partnerships in the past and they've never worked out. While I think showcasing the power behind their OS and how you can connect your home is a great idea, I can't help but think that a store-within-a-store concept might have been a better way to go.

That said, Microsoft has a lot to show off - everything from computing (Windows) to search (Bing) to gaming (xbox) to entertainment (Zune) and you need lots of space, lots of product and lots of staff - which means a retail store is necessary.

New stores are set to open in the coming months and I'd love to see how this pans out for them. The success will be based on innovatice product offerings that drive people in and the overall customer experience. This should be an interesting endeavor to watch.

No comments:

Post a Comment