Friday, December 3, 2010

Apple Does not do Retail but Does a great Exhibit

 
With over 300 stores worldwide one would be excused if they thought Apple was in retail. Fact is they do sell their products at these locations but to call it retail is to ignore the obvious. Apple marketing is not like anyone else’s, as many of its competitors wrongly assume but its many loyal “Fans” know.  Apple is different so why should their stores not be different.
Retail is an environment where Apple Stores are part of an eco system
Retail is about place, products, pricing, and promotion. In retail making a sale is the primary focus for a store; the retail environment is where everything relating to the customer experience, from the different products on display, visible inventory, music, feature displays, special product placements, promotions, and personnel (clerks) serve the goal of increasing the chance someone will make a purchase. Walk into nearly any retail environment and you will find these key elements along with a “theme” that is usually distinctive and conducive to “shopping”.
If the comparison stopped here Apple would clearly not be classified as a “real” retailer, they have no inventory on display, no promotion, no music, no clerks (not the same as Apple well trained staff) , and very few non Apple products and no competitive products to compare.
Apple has figure out if they did not invent the concept of “eco-system marketing” where everything relating to Apple reinforces the Apple vision of itself. The products, the marketing message, the colors, are all part of the “design elements” included in the total eco system are all non-Apple products approve by Apple that support and promote the Apple vision.  But most critical is Apple’s ability to totally control the message.
Apple does not do random and it certainly does not follow convention
This is not to say Apple does not make mistakes or missteps it does and will in the future the difference is they know what they want to accomplish, so if it does not work as designed (be it product, marketing campaign, whatever) they recognize it early enough to cut their losses. Where others see failed products as a failure Apple sees it as a learning experience and moves on.
Apple is always promoting itself from the perspective of a total experience where the whole is greater than the sum of the parts.  It is not the product apart from the whole it is the total experience, solution, and empowerment that comes from buying into the Apple vision.
So if the Apple stores are not retail stores what are they?
Apple gives the public a trade show exhibit experience not a retail experience. Interesting Apple has a history of avoiding any trade shows where they do not have complete control like CES in favor  of their own hosted shows (MacWorld, Apple Expo) to great success.  When those shows no longer serve the Apple purpose they move on.
  At a trade show the exhibitors have their own booth space to exhibit their products and promote their company.  They do this in a venue with 100s if not 1,000s of other companies all vying for the attention of the attendees.  In some ways trade shows offer a greater chance to make a sale because of the close association of industry related companies as the exhibitors are not mutual exclusive so attendees are free to pick and choose which companies they will do business.  In the consumer retail world very much like shopping in shopping malls where there are a lot of shopping choices.
The real difference is focus, where retail is about making a sale of a product.  Trade shows are about selling the Company’s message.  The company’s vision, along with its products are all on display within their booth space.  When done properly the booth “sells” the company to the attendees.  The exhibitors display their products in demo areas where attendees are invited to touch and feel the products in a control environment exclusive of competitive products.  Where knowledgeable staffers are available to interface with attendees hopefully to convert them into customers.    
Apple has all its products out for all to touch and play with, in a very non promotional layout, with no visible inventory or non-Apple product in the demo area.  Ever seen an HP computer or NOKIA phone in an Apple Store?
As the trade show booth staffs are divided by functions so when they meet visitors in the booth they can provide the right people for the right situation, Apple’s store staff is divided by functions and trained to be experts if not a “genius”. 
When third party products are part of a trade show display it is to show support for the exhibitors products more than promote the other product like you would expect in a retail environment.  Ever notice how the non Apple products are on display shelves in the back of the store?
So why is it important in a Trade Show related article?
In my mind Apple has taken the trade show concept of “selling” the message not products to accomplish their corporate goals beyond just selling products.  Apple has proven when consumers buy into their message the products take care of themselves and competition is left far behind.   Apple is selling a message at its stores they don’t care if you come in just to look and touch the products without making a purchase as long as you are sold on the Apple vision.
Sooner or later they know they will get you as a customer if you buy into the vision. No retailer could afford to have people buying only into their vision while not buying their products, since Apple can afford to wait one can only conclude they are not in Retail.

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