July 15th, 2009
PCs need a brand (and why Microsoft stores could revolutionize how a consumer buys one)
The end of the modern era of PC sales is nigh.
OK, so that may be a bit of an overstatement. But the potential is there for a radical shift in the way PCs are sold to consumers.
ZDNet’s Mary Jo Foley notes that Microsoft plans to open retail stores this fall, probably to coincide with the release of its next-generation operating system, Windows 7. Foley reports that Microsoft may copy the feel of the (wildly successful) Apple Store and may simply use the stores as a product showcase, rather than a proper retail outlet.
The move recalls the Gateway stores of the 1990s, but the difference lies in the fact that the company responsible for the operating system — Microsoft — is the one working the brick-and-mortar, rather than a manufacturer such as Hewlett-Packard, Dell, Lenovo and so forth.
Details on the concept remain to be revealed, but the move is a smart one. Why? By controlling nearly everything about its systems, from the design to the shopping experience (online and in-store), Apple is doing wonders in revamping the way the average consumer purchases a computer.
Managing the ‘Experience’
What’s so great about the Apple Store? Ask Business Insider editor Henry Blodget, who strolled into one for the first time and was compelled to stay and — gasp — buy something:
“Confession: I had never been in an Apple store before. Revelation: It really is like entering another world…It’s nice here in Apple world.”
This being New York City, Blodget’s shopping experience didn’t go 100% smoothly, but it was a lot better than you’d get at Best Buy or the late Circuit City: The design of the store echoes the design of the products; the products are displayed as if they hold value (in an open, art gallery way, not a bulletproof glass way); a staff member can check you out as you stand in line, if necessary.
It all screams Apple. You know exactly what you’re getting, start to finish.
Compare that to buying an HP or a Dell in-store: it’s a relative nightmare. Best Buy may only have certain configurations to try, usually the systems are loaded up with demo software instead of straight-up Windows for a real sense of the machine, and you have to battle with the folks buying HDTVs, discount DVDs and cameras at the register. Nothing screams “PC.”
The same experience is echoed online, too: Apple’s site is easy to navigate, features clear signage and large product images, and keeps the steps to checkout minimal. Compare to PC manufacturers such as HP or Dell: lots of information, lots of configuration options with complicated product numbers, 18 steps to customize the machine (click, new page; click, new page; click…) and you’re still not sure what you bought, because the company expects you to zoom and “inspect” your several hundred-dollar purchase through a 275-pixel window. (When you’re trying to make a sale, shouldn’t the process be as easy as possible?)
Nothing screams “PC;” Microsoft is one vendor of many. But Microsoft’s the one going to bat for Team PC in the public eye.
So when Microsoft says it’s opening stores to better compete with Apple, it’s a good thing.
Army of None
For decades, the organization of the Windows PC supply chain has both helped and hurt it. The notion that one company made an operating system and many companies designed the machines to run it helped Microsoft place Windows on the vast majority of consumers’ computers.
But the downside is that the sales message is muddled by the time it gets to the consumer.
If a customer says “my computer sucks,” do they bother to differentiate between Windows and the hardware?
What is a PC, exactly?
I’m not saying Apple’s closed system is the answer, but it’s clear that there exists difficulties for both partners in this situation: Microsoft can only confidently market Windows, and OEMs can only confidently market their hardware. Without serious collaboration, neither can effectively manage the “PC” message.
With a Windows majority, it matters less. But as Google prepares its Chrome operating system, and Apple grows Mac OS X market share, the Windows PC supply chain umbrella doesn’t have a clear explanation for why “PCs” are better.
Sony might say “PCs are stylish and exclusive.” Dell might say “PCs can be customized to fit your lifestyle.” Lenovo might say “PCs get more work done.” That syncs with their product offerings, but it leaves Microsoft to bat for all of those messages (and leaves OEMs at risk for how Microsoft reacts).
A lot of this is because of how Apple has positioned itself. It doesn’t defend itself against Sony or Dell or HP; it defends itself against “PCs.” If Microsoft wants to fight on those terms, it’s got to clear the air.
Microsoft must decide whether or not it is synonymous with “PC” and rally the troops accordingly.
The motivating factor in doing so is that both companies — Microsoft and the manufacturer — potentially take flak for aspects of a system it can’t control. What if the touchscreen on a Windows 7 tablet PC doesn’t operate perfectly? Is it the display, or is it a bug in Windows? In both cases, a problem — and how quickly and effectively it’s solved for a user — impacts a consumer’s perception of both companies, rightly or wrongly.
“That Asus touchscreen tablet is no good.” “Yeah, Windows is no good at touch.”
Correcting Misperception
So what’s a company like Microsoft to do when customers can’t (and don’t) differentiate?
The answer is to take the lead in being the face of the PC.
Sure, it already is in a sense: John Hodgman does a fine job embodying the role to get kicked around by Justin Long’s Mac in Apple’s “Get a Mac” advertisements. And Microsoft has affirmed the role with success thanks to its “I’m a PC” and “Laptop Hunters” advertisements.
Great. But what happens when I want to buy one of these great PCs? A hot mess, that’s what: I’m not sure which manufacturer to go to, so I’ll pick one. Online, Sony tells me plenty about hardware on its website, arguably the most visual site among Windows OEMs; to learn about Windows 7, though, I have to go to Microsoft’s dismal website, which gives me just three bullet points about why I should choose Windows 7 (it takes some hunting to actually find an illustrated feature list).
(Compare to Apple’s landing page for its MacBook Pro line and its Snow Leopard page.)
Do I want a PC, or not? According to PC manufacturers’ websites, “PCs” as a group don’t exist. But in the real world, I know that a PC is, colloquially, a Windows-based computer. That mixed message is a problem.
It’s understandable from a business perspective; one vendor doesn’t want to be liable for another’s product. And from the OEM point of view, manufacturers don’t want to be subject only to one company’s operating system and risk brand visibility for themselves (”I may hate Windows, but at least X makes a good computer…”).
But it’s all immensely confusing to a consumer, because often, we don’t divide the experience. (See aforementioned Asus tablet example.)
This gets even more complicated in-store: lots of products and options, no clear message (except “this is a store where they sell electronic things.”) If there were other options for operating systems, I wouldn’t know it. (Maybe that’s the point.)
In-store, a product lineup merely pits components against each other relative to price, with some physical interaction with form factor thrown in. It doesn’t tell me why Windows is better than Mac.
Stores Embody a Brand
A Microsoft brick-and-mortar store network could help change this customer confusion. In-store, Microsoft could narrow the message (all PCs will give you this experience) and actually give PCs a unifying brand. It makes things more complicated for OEMs’ own branding strategies, but it’s clearer for a consumer.
In effect, Microsoft needs to act like the parent company of HP, Dell, Asus, Lenovo, and so forth, at least with regard to marketing: it needs to take different OEM branding strategies and translate them into a cohesive lineup for consumers.
The bottom line is that if Windows PCs want to be a team (versus Apple, versus Google), they need an identifiable brand instead of appearing as a set of warring subjects in King Microsoft’s court. Microsoft stores are a step in the right direction of addressing the issue through a physical presence, and Microsoft would be wise to mirror the effort on its labyrinthine website.
Look — Windows 7 is going to sell a ton of copies either way. If Microsoft is really confident that PCs are really better than Macs, it seems to me that it would be wise in the long-term to streamline what a “PC” stands for, and set out to prove it through clearer messaging.
Fight the Windows vs. Mac OS X battle, or fight the PC vs. Mac battle. Just don’t mix up the two.
I’ve always joked that instead of only having a big “VAIO” or “DELL” or “HP” logo on the back of laptop cases, there should be a glowing four-color Windows icon (or an Android, or…) in the center, with the manufacturer’s logo in the corner.
Maybe that’s what it takes for PCs to level the playing field. A little teamwork.
Andrew J. Nusca is an associate editor for ZDNet and SmartPlanet.
See his full profile and disclosure of his industry affiliations.
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| 07/15/09
