What’s up with Apple’s retail strategy?
Rethinking the customer experience may be exactly what it needs.
The recently announced departure of Apple’s VP of Retail got me thinking about the Apple retail experience, how it hasn’t changed much, and how it could be re-imagined.
There have been some changes over the years. The layout was redesigned to improve flow. And, Apple’s online and offline experiences were knit together for even more efficient stores. Both were great moves. But to a consumer, both would be barely noticeable. Check out the pictures below, one is from 2014, the other from 2019.
Not a very big difference, is there?
There seems to be a lack of strategic thinking. Strategic thinking takes into account not only what the company is doing now but what is going on in the competitive space and world in general. For example, in 2005 our DVD business at Netflix was doing quite well. But Reed and the leaders saw that broadband was getting cheaper, faster, and more accessible. This is why work began on executing the strategy of “get big on DVD and move into streaming” around 2005 (launching in 2007). That allowed us to have a massive head start in streaming.
Changes to the retail environment are accelerating. The old guard, who thinks changing up their stores means rearranging the deck chairs, is dying. Meanwhile, digital-first brands are thriving by creating experiential shopping.
So, how could it be different?
I’ll give you a brief example of how Apple seems to have missed an opportunity. One of the hottest selling items in Apple stores is their iPhones. And one of the biggest reasons people buy or upgrade their phones is to get a better camera. Why? So they can take photos and videos which they then share on social networks. And while some social networks have waned over the last five years, the one that is deeply rooted in pictures and video, Instagram, has experienced explosive growth.
So here you have a major supplier of cameras that are used mostly for sharing on social networks and a growing social network that is thriving on shared content. Imagine if Apple had created spaces within their stores that tapped into that sharing the experience. They could have created a virtuous cycle of free* marketing.
The new purpose of retail
You might argue that doing things like creating Instagrammable spaces within the stores would not move units. I might argue differently. Remember how the old-school approach to retail has been leading to ruin? By re-tooling the retail environment in a way that gives the nod to how many use their cameras or phones, they’d only be reinforcing their brand’s leadership status and most likely bolstering sales.
What Else?
An example of this would be to create an in-person demo that ties directly to the product and gets shared.
They could create powerful, new demo areas that let customers experience not only the products/features but the second-order social benefits while at the same time creating viral content around Apple products in the process.
How about unique events like in-store concerts by music acts or launch events that highlight new camera/AR features, to name just a couple of ideas?
Last Thoughts
I am not privy to the culture or the inner workings of Apple, but over the course of 5 years (a lifetime in retail), I would have expected to read about the testing of some new concepts. I hope that now Apple will seize the opportunity to re-think their retail strategy like they re-thought the approach to phones.
That, of course, may not happen. Deirdre O’Brien, who has been with Apple for 30 years and who currently heads up HR will be Ahrendts’ replacement. I am not sure if her experience includes retail but if not we are likely to see only operational improvements rather than retail innovations. I would love to be wrong about that!
Big thanks to Jonathan Howard for helping me shape this article and sharing his Sandbox VR experience!
*obviously nothing is free as there is the cost of creating that environment. The ROI on it would still be fantastic.
