Microsoft has moved to compete head on with JB Hi Fi, Harvey Norman and Officeworks by opening their own store in the heart of Sydney today, other stores are planned in Australia.
They have also moved to outsell their long time PC partners by offering Microsoft branded products ahead of their partner’s products in their new store.
The only problem is that Microsoft, who is desperately trying to copy Apple has neither the brand pulling power or the credibility that Apple has managed to build since their first shop was opened back in November 2004.
While consumer pack Apple stores out day after day Microsoft has already resorted to rent a crowd as part of a PR program orchestrated by their PR Company.
The move to opening their own store in Sydney follows the opening of a new store recently in 5th Avenue New York
It’s already been noticed that consumers are more interested in Minecraft figurines than Microsoft or Windows promotion material.
Microsoft acquired the Minecraft franchise last year.
Located close to the highly popular Apple store in George Street which according to Telstra executives whose head office is right across the road, is “always packed day and night” the Microsoft store is set to struggle compared to the Apple store due to the lack of Microsoft products with pulling power.
An Apple executive said “I know if it came down to the pulling power of a new iPhone Vs a Windows phone who would win when it comes to attracting eyeballs”.
Microsoft Australia managing director Pip Marlow told the AFR that she likes her location: it gets 50,000 people walking by every day, which, she suggests without actually saying it, is more than the Apple store gets.
When this was put to an Apple Australia store manager they said “It’s not about who walks past your store it’s who walks into your store and buys an actual product”.
Apple said that as of July, 14 million people had walked into the store since its 2008 opening.
The new Microsoft store has been described as an “expensive Microsoft” billboard that will struggle to get consumers into their stores because the lack of appeal that Windows, and Windows smartphones have in the market.
Microsoft is also facing falling demand for their Xbox with the Sony PS4 outselling the Microsoft offering.
In Europe Sony has over 65% of the console gaming market.
“We don’t think of it as an expensive billboard. This is really about inviting people in so they can see and touch our products. If they don’t want to buy products then they can still be leveraging our services,” says Travis Walter, general manager of international retail stores for Microsoft.
Customers will even be able to buy Dell PCs in the store after Dell agreed to cross sell Microsoft’s Surface Pro 4 to their customers.
