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Digital Retail News

Apple looking to change consumer mindset ahead of new product launches

Apple store

Apple retail chief Angela Ahrendts is trying to usher in a new way for the company to handle product launches. She wants to encourage customers to avoid their local Apple Store when the Apple Watch goes on sale and instead order online, according to instructions she sent to store staff obtained by Business Insider.

"This is a significant change in mindset, and we need your help to make it happen," the memo says (see the text below).

The memo is interesting because it suggests that the publicity Apple's stores normally enjoy on product launch days — when customers line up for hours or days ahead of a new iPhone launch — isn't entirely welcome at the company.

After the launch of iPhone 6 and 6 Plus, supply of the new product was so constrained that even weeks later, in December, up to half of the demand for the new phones was going unfilled. Customers walking into stores hoping to buy the new phones were often disappointed. Among Apple Store staff it is a poorly kept secret that when new products launch the best way to get one is to order online and avoid the stores.

For observers, shortages of Apple products have appeared to be a PR advantage. When Apple ran out of the gold iPhone 5S shortly after launch, it generated yet more publicity for the product. Some people have even thought these shortages are part of Apple's marketing strategy — to make them seem more desired and scarce than they actually are.

The Ahrendts memo, however, is an indicator that Apple does not like being unable to meet demand or leave customers frustrated. Channelling customers online partly solves that problem. Customers will still have to wait if there isn't enough product, but at least they know the product is on its way — and they're not wasting their time showing up at Apple's stores.

For the Apple Watch launch in the UK, the only way to get an Apple Watch will be to order online and then have it shipped to your home, even if you're in the store. After customers arrive in the store, employees will order the watch for them through "Kiosk," Apple's internal version of the online Apple Store. (That way, the local store gets credit for the sale even though the sale was conducted through the web site.)

Crucially, "there will be no store pickup" for Apple Watch in the UK, according to the source who leaked us the memo. Watches will only be shipped to their homes after they have chosen their model and strap. The US system will do something similar but customers will still be able to pick up their watch at the store if they insist. Otherwise, customers will be encouraged to order online and get the product delivered to their home address.

"Store inventory will be limited," our source says. Apple did not respond to a request for comment. (Mark Gurman at 9to5Mac has more detail on just how limited some of that inventory will be, particularly for the gold Apple Watch Edition.)

Here is the text of the Ahrendts' memo. You can see that there is a huge emphasis on training Apple customers to go online rather than show up at a physical location for both Apple Watch and the new MacBook. "The days of waiting in line ... are over," Ahrendts says:

Get in line online

"The days of waiting in line and crossing fingers for a product are over for our customers. The Apple Store app and our online store make it much easier to purchase Apple Watch and the new MacBook. Customers will know exactly when and where their product arrives.

This is a significant change in mindset, and we need your help to make it happen. Tell your customers we have more availability online, and show them how easy it is to order. You’ll make their day."

Note that the memo covers both Apple Watch and MacBook — it's not just a policy for the Apple Watch alone, which is a new product unlike any Apple has sold before.

Customers who walk into an Apple Store simply hoping to see or play with an Apple Watch may also be disappointed. This image leaked to Business Insider (below) was designed to help employees understand the new Apple Watch store setup. It shows Apple's display apparatus for the Apple Watch. Note that the watches will be displayed under glass embedded in the table. The products will NOT be on little stands or attached to security chains (the way iPhones are). Customers without an appointment will not be able to pick them up and try them on. And they'll be told they can't get anywhere near them without an appointment — which they should make online.

One reason for this is that the back of the watches contains sensors for detecting your pulse, and for transmitting your heartbeat as a series of vibrations to another watch wearer. So those sensors can't sit on any display or stand.

While the new policies won't end shortages, they may end one major embarrassment for Apple: Fights outside stores on launch days and long lines of Chinese immigrants paid to be there to buy phones for the Asian black market, which marred the iPhone 6 launch.

Source : Jim Edwards - Business Insider UK

09 April 2015

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