Thursday, May 17, 2012

Knock-off Branding

Let me say at the outset, that I am a fan of the underdog. Microsoft is the underdog in the consumer world. I first wrote about them when I visited their very first store in AZ. That post and its observations was one of the highest read posts in this blog. It just goes to show you that Microsoft is still a big and powerful brand name. 

Last week, I was in Austin and go the chance to be at the grand opening of the Microsoft store in the Domain. At first glance, there was a line of people waiting to get inside - good sign. This means there is some excitement about the store. At second glance, I realized that the vast majority of people in the line had Dell employee badges hanging from their belts. (so in case you had some delays calling in that day, they were all at the Microsoft retail store) 

As you stroll through the store you can see some of the "upgrades" from the original. And I would say that the store is looking much more appealing. However, look at the picture of the outside of the store


Seem familiar? Glass, sleek, one-color front with an emblem versus a name. Tables inside with light colored woods. Getting the picture? There is a store in Dallas, TX that sells purses. They look like Gucci, Prada, Coach, etc, but they are not. When you go to the counter to pay, they will get a brand name plate out from under the router and stick it onto the bag and wallah - you now have a Kate Spade purse for $20. 

I cannot shake the feeling of the Microsoft store as being exactly the same as the handbag. Why would they put so much effort into being a "knock-off" of Apple versus being their own brand with their own identity with their own personality? Do they honestly believe people will wonder into their store thinking its Apple? 

The problem is that instead of this store looking like a beaming representation of the brand, it looks like an imitation of something they would like to be. Again, I want Microsoft to succeed. But, they just seem to place more value in being Apple than they do in being themselves. And what are we customers left to think about them? you can get stuff that looks like Apple, but not quite as real? I know that cannot be what they were thinking. 

Remember, Everything Speaks. And this store design is screaming - we wish we were Apple. 
And the irony is that as soon as the Microsoft retail store opened, the Apple store - a few doors down the row - closed for remodeling. Wonder what they have in store? 

1 comment:

Sardinicus said...

Smart retailers should embrace rather than try to prevent Showrooming. It is, after all, a way to get potential customers in your door. And if you can't make money with customers in your door you sure can't make money without them. If nothing else, offering the opportunity to showroom without shame costs you less than offering loss-leaders every week.

I'd set up a kiosk with a barcode scanner to let customers look up "true" internet pricing on the items I have on hand. Look at shipping costs and distances. Point out differences in warranty support vs. grey market or mail-it-back support. And have a policy to adjust pricing where the real cost discrepancy would be enough to justify the wait and inconvenience of ordering on line -- remember that once a customer is in the store online ordering and home delivery is actually LESS convenient.

"You can take it with you right now" is actually a significant bit of added-value and being the showroom offers you the chance to capitalize.