Apple Retail Stores: the 9-success factors

“In 2001 Apple Computer acted on a decision to open a series of retail stores that would display their entire line of computer products, software and peripherals. Part of the decision was based on Apple’s declining share of the computer market. But the move was also forced by *poor* marketing of Apple’s Macintosh products at other retails stores, most noticeable the Sears and CompUSA chains. “

Source: Ifoapplestore.com
http://www.ifoapplestore.com/the_stores.html

RBN analysis: 

This is the kind of decision that can have a dramatic impact on your business and some might have thought that Steve Jobs became crazy when he fired key retailers (including sears) to develop independent retail stores. Apple operates today more than 200 stores and has imposed very tight guidelines to its retailers when it comes to display and sell its products. Apple’s operating incomes has jumped from about 19 million € in 2003 to 3.3 billion € in 2007. Its retail strategy has certainly helped the company to achieve such a tremendous performance; according to Peter Oppenheimer (Apple’s CFO), every Apple store attracts about 9000 visitors per week! No question that Apple retail strategy has inspired other A brand selling high value product. Company such as Archos, TomTom, HP, … are investing a tremendous amount of money in retail to have their own shop (Shop in shop) within the retailer’s outlet and by doing so, they want to have a better control of customer retail experience towards their products. It is no secret that IT brands have to evolve towards CE to secure their future.

A Wall Street Journal article about the 2004 Apple mini-store openings explained, “Mr. Jobs said that Apple wants, ‘the best buying experience’ for its products, and that most of the resellers weren’t investing enough in their stories (sic) or making other selling improvements.”

Apple-branded outlets were meant to succeed thanks to “9 success factors”

*A strong concept / Solid business model*

*New and exciting products*

*Enough Cash on the balance sheet*

*Excellent Marketing and brand name***

*Excellent Supply chain management***

*Relevant Information systems*

*Excellent shop locations*

*A unique solution-focused store design*

*Outstanding store operation to deliver “Fantastic experience”*

*Source: MacWorld* *Read the complete article here:
http://www.macworld.com/article/17502/2001/05/success.html*