Apple, Inc.'s (NASDAQ: AAPL) command over its customers is nothing short of amazing. The company creates and markets some of the best personal consumer electronics in the world. Its marketing efforts to make its products the de-facto standard in the markets where they compete is also second to none. Seeking to get in on that action, consumer electronics retailer Best Buy, Inc. (NYSE: BBY) opened Apple "mini stores" inside national retail locations recently.
Now, this was an odd move to some, as Apple already has retail stores all over the nation that do quite well for the company. In fact, they've done exceptionally well in an age where direct retail outlets have flopped for other computer makers. But Apple makes a lot more than just computers as we all know. So much more, in fact, that it has jettisoned the word "computer" from its corporate name this year.In terms of foot traffic, though, Best Buy is hard to beat -- which is why Apple wanted to have a retail presence inside the retailer's locations. Apple's computer products aren't just mixed in with all the other products at Best Buy stores -- they are displayed in a separate "mini store" format that sets them apart from the competition. Apple knows that it is different in the consumer's eyes, and it is playing up that angle even inside another retailer's door. Very successfully too.
So far this summer, only about 50 Best Buy locations have the Apple "stores within a store," but the results have been so impressive that an expansion is taking place to have these Apple retail locations inside more than 300 Best Buy stores at the end of 2007. Only Apple could make something like this successful, and it's a testament to the power of the company's brand.
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Reader Comments (Page 1 of 1)
8-31-2007 @ 3:48PM
JJ said...
Smart move by Apple, particularly if and when Apple introduces an Apple LCD TV (with iTV inside)!