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Sony Quietly Opening Retail Stores
as400tek writes "According to CNN, Sony
Electronics Inc. has been opening stores in selected cities all over the
US. Denver and Las Vegas are the next two location, or location numbers 11 &
12. Should the Apple retail model
be applied to Sony, and if so why didn't it work for Gateway?
Should Dell be next to enter you local shopping mall? Should large retailers like Best Buy and others be afraid of this model? Does this mean better service
for Sony's already nice line up of electronics?"
And it won't work for Sony. Both companies compete in the super-commoditized consumer electronics market. Neither of them have any real competitive advantage, other than Sony's fading brand name. Apple never tried to be the lowest cost provider; they have products that competitors either don't have or are not the same. The store model works for Apple because they compete on their own merits and people will go out of their way to buy Apple products. Granted, they are more expensive and often very proprietary, but they have a significant fan base. Sony and Gateway do not and will not have this advantage, therefore the only thing they will have to compete on will be features and price, just like every other electronics company. They will have a hard time keeping up with the massive flood of cheap consumer goods sold at Best Buy that are brought in by the boatload from Thailand and they will suffer miserably.
"There's been at least one Sony shop in Dublin, Ireland for probably about five years. This doesn't seem like news to me."
:(
Yes, but don't forget the US is the center of the Universe...it's not actually news until it happens here
Sad, but true.
It didn't work for Gateway because Gateway was more like a "CompUSA" (a store I loathe) and Apple is more like a high-end boutique. I realize that both models have their place and can be effective, but Gateway's essentially selling commodity goods while Apple sells a whole "lifestyle." Visiting an Apple store is an experience in itself and has drawing power. Nike stores are similar in this way (at least the major one here in San Francisco).
We also have a major Sony presence here The Metreon and its own Sony Styles store (although as a poster above points out, it's not exactly perfect). and I think Sony will do it a lot more like Apple based on what I have seen (high end fixtures and architecture, high-drama).
This is a smart move for a brand like Sony--they need to recapture the caché they once had more of.
"...all the labours of the ages, all the devotion, all the inspiration, all the noonday brightness..." yada yada
Nobody buys a gateway because they really want a gateway.
But some people actively seek out sony products (i cant imagine why, but my brother has spent THOUSANDS on them, and lots more replacing them when they break). The same is true of apple. They are as close to "designer" brands as we have in electronics.
People do buy luxury watches, clothes, food items in store when they could get them cheaper online - it's more about the experience than the price.
Gateway's products were all commodities w/Gateway badges on them. Why would anyone buy regular PC hardware from a specialty store?
When you buy a computer from the Apple Store, you do not buy a commodity item; you buy an "Apple." You get the style, the culture, the product line--iPod, iMac, iBook, PowerBook, Power Mac. Apple is somebody who sells a lifestyle, and that's what justifies an "Apple Store."
Alan
They'll be the most expensive place to buy Sony products, only carry home electronics (no computers or parts), and be staffed by people who know all the buzzwords but have little idea what they mean.
There's one at South Coast Plaza (costa mesa, CA) and it's kind of cool to wander around and see all the gadgets. Once.
Since they only sell the one brand, there aren't a lot of new products to draw people in. Plus it's retail prices for everything so you'd never buy there, just look and go home and order online.
Comparing it to apple stores...
* apple has a genius bar staffed with people who can often fix your problem right there. sony had some sales vultures trying to sell me a plasma.
* apple has 3rd party software available for purchase
* apple stores (some of them) have a closeout/discount bin for cheapskate shoppers to check out
* apple's products are just better designed than sony
* everything in the store is compatible with everything else
* grassy knowl and start button on every monitor makes the sony store look a lot like best buy or compusa
Problem is, Fry's is being scewed. I go to Fry's to see the product in person. Fry's has to pay for that store to exist, to have the products on hand, to have enough staff to answer my questions, etc.
But since I don't buy it from Fry's, they lose all of that pre-sale investment. The online store gets all of that pre-sales investment for free.
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