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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?"
Their online stores have done very while. I am surprised that people shop online and pay retail prices when I am used to shopping online in order to get a discount. They have great brand recognition and people, by and large, believe Sony to be a high quality electronics provider. I think they have a good shot at being successful.
http://www.busyweather.com/
in canada, sony has had stores for long time. there is one here in vancouver in a mall in the suburbs, not news (at least not to us).
Marge, get me your address book, 4 beers, and my conversation hat.
Oh, and no customers.
We have Sony Centres. As the name implies, they only stock Sony products. As far as I'm aware they are franchises and not directly operated by Sony. However, whenever a particular Sony line is in short supply, the Sony Centres never seem to suffer.
I've got a fever and the only prescription is more COBOL.
Gateway didn't succeed because you went to their store to configure and order a machine. You then waited several weeks or longer for it to arrive. When they had these in my area they did zilch. People could go to any number of stores and walk out with a computer and when people are ready to buy, most didn't want to drive to a store just to place an order. I think that towards the end they started keeping a few preconfigured machines in stock but not many. They also had an awful compensation plan for their sales people.
http://www.busyweather.com/
"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
I have visited the store a few times in the South Coast Plaza(CA.). In my opinion these stores really lack the "added value" that a branded Sony store should give. The Sony products, while very cool, don't lend themselves to the integration and "wow factor" that you get being in an Apple store and seeing cool features implemented. Also, the staff there is your basic run of the mill Circut City type employee (not particularly energized or informed).
There is not much difference in the presentation at the store vs. a nice consumer electronics shop and I don't feel like I am having a unique "Sony" experience by being in the Sony store because the products are not being presented in a new way.
While apple has a real motivation to open these botuiques (informed sales people and proper product presentation) I dont really see the long term breakout potential for Sony. They already have the benefit of ubiquity.
Having said that, its a great store to kill time in while your wife is shopping!
Who is General Failure, and why is he reading my hard disk?
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
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
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.
Until Sony closed it, I used to go to the one in Chicago once a month so I'll address these points one at a time:
1. Their prices were the same as those on Sony's website. Things could be found cheaper from other resellers. Note that the sales tax is 10% on Michigan Avenue, so that might make it more expensive than most places.
2. They carried the full Sony line including computers (even Aibos). They sold accessories for the products, but it didn't appear that they had every part - for example, I doubt I could have purchased a replacement power supply for my Vaio.
3. I think you are right about the staff, although I never expect the staff at a retail outlet to know much. They aren't getting paid enough to be domain experts.
I don't think Sony expects people to go to these stores to ask questions about the products. I think Sony has the stores so people can see the products that they have been reading about up close and decide if it is for them.
I have worked at Fry's (They deal dirtier than Wal*Mart to their suppliers, employees, and customers.)
I am sure you have seen those advertisements that Fry's puts into your local paper.
Guess who pays for them. (Hint it is not Fry's Electronics, it is the manufacturers that were advertised within the first third of the page.)
In the San Jose and the SoCal area there is at least an 8-page Fry's Electronics "news section" once a week.
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For the products you see "featured" on the endcaps or other high visibility areas, the manufacturers pay "rent" to Fry's for this "premium real estate" to the tune of US$5K/week/store (this was 1993!)
I have seen some vendors end up PAYING for the privelege of being porked by Fry's at the end of the promotion because the product did not sell on its own merits despite this preferred placement. (The "rent" completely engulfed the $sales expected by this promotion. The Fry's brothers learned this trick from their parent's grocery business.)
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Also, Fry's is notorious milking their net terms with their suppliers and due to their size can "choose another vendor" if current supplier does not cater to their whims.
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Their xxx days "same as cash" sales/financing is done by the manufacturer; Fry's gets this as "money in the bank" from the manufacturer when the merchandise leaves the store. On some products the vendor does not get paid until the item is sold.
The Roman Rule: The one who says it cannot be done shall not interrupt the one who is doing it.