Publication Date: Friday, July 16, 2004
Sony's answer to the Apple Store
Sony's answer to the Apple Store
(July 16, 2004) New outlet at Stanford mall promotes digital lifestyle
by Alex Doniach
Hardwood floors, a crackling remote controlled fireplace and 61-inch Plasma flat-screen television makes for a cushy mock family room in the Sony Style Concept Store, which opened at the Stanford Shopping Center. earlier this month.
The upscale floor plan, where Wired Magazine meets IKEA, lets you imagine what Sony's latest gadgets will actually look like in your home. The sound room's dark wood paneling and velvet-inspired cushions makes for comfortable viewing on the latest Sony LCD and Plasma televisions. Soft lighting and old movie posters also work to off set displays of Sony digital cameras, MP3 players mounted in glass cases, and the newest water-cooled desktops.
Forget Circuit City and Best Buy, Sony's arrival solidifies the latest trend in electronics retail: high-end electronic boutiques that let buyers sample the gadgets in comfortable, well-staffed settings. Following in the footsteps of Apple Computer's high-end showroom that opened in Palo Alto three years ago, Sony is hoping to transform the electronics shopper's experience.
"Our major goal is to provide a strong, interactive environment," said Dennis Syracuse, vice president of Sony Style Retail. "Going in should be fun, it shouldn't drain you. And when you leave, we hope you love the product you bought."
Along with the Apple Store, the new Sony outlet also solidifies Palo Alto's reputation as a cutting-edge, high-tech haven. From start-ups to search engines, the city has proved itself a hotbed for technology and a prime location for the latest in electronics retail, Syracuse said.
"Stanford Shopping Center was an obvious choice for Sony Style's third boutique," Syracuse said. "It's in a high-tech area and it attracts 15 million shoppers per year. It's also the top 20th grossing shopping center in the U.S."
Sony opened its first two concept stores fall 2003 in Los Angeles and Costa Mesa, Calif. Both stores debuted in upscale shopping centers, much like Stanford.
While high-end electronics may seem a little out of place next to Coach bags, Sephora cosmetics and nearby Victoria's Secret lingerie, Sony's decision to place the boutique in the heart of the upscale suburban mall was anything but arbitrary. Women are this store's target audience -- and the store's design reflects this marketing ploy.
"Part of our strategy was to build stores in suburban markets that are 65 percent female with a large concentration of family consumers," Syracuse said. "The new stores are smaller and reflect suburban lifestyle environments."
These stores mark a departure from Sony's flagship locations in New York City and San Francisco where the focus is less on design and more on showing off all of Sony's products. Those stores attract a 70 percent male market and Sony needed a way to reach out to the other half of the population, Syracuse said.
"By editing down products, and creating a lifestyle setting, consumers will feel more comfortable about choosing products right for them," he said.
Removable silver scrim scrolls and stainless steel walls give the store a boutique feel, but full-length Spider-Man posters and red beanbag chairs mellow the chi chi atmosphere.
Vases of bamboo and fresh floral arrangements work to soften the overwhelming effect that high-end electronics can have on consumers. Two strategically placed concierge desks also ensure that customers have plenty of help while shopping for their AIBO Entertainment Robot, a robotic dog that doubles as a security camera and companion (it plays fetch!), and the 3-week-old Sentrino, Sony's latest paper-thin laptop.
An interactive Playstation corner with a small selection of Sony games also ensures that kids won't get bored while mom and dad shop.
Why is Sony trying so hard to be creative? The answer can be found in the technology market, projected to grow 5 percent this year, according to IDC, a market research firm. An improving economy and newer, cooler products are a few reasons why people are spending money on technology, according to the IDC report. They forecast that worldwide technology spending will pass the $1 trillion mark in 2006.
This doesn't necessarily mean more money for vendors though. While more people are spending money on technology, a spike in consumer demand also increases competition between retailers. This might lead to rapid price decreases necessary to stay competitive, said Brian O'Rourke, Senior Analyst for In-Stat/MDR, a market research firm.
It can also make it difficult for companies to earn money.
"Sony often goes through a lot of vendors which can make it hard for them to make maximum profits," O'Rourke said. The new Sony Style stores eliminate middlemen like Circuit City and appeal directly to buyers in a creative, homey setting with sales reps who do more educating than selling.
Apple was one of the first to successfully pull off the new concept store. With over 80 stores nationwide and an impressive 20 million annual visitors, Fletcher Cook, Apple Retail Relations rep, said the store is a success because of its reputation for being "more than a store." Some of the perks include a "Genius bar" where consumers can fix broken merchandise, a full schedule of information sessions, guest speakers such as Roger Ebert and even a kid's day camp.
While Sony won't catch up to Apple's 80 stores any time soon, they do plan on opening 10 new stores in top markets by the end of the year.
Weekly intern Alex Doniach can be e-mailed at adonaich@paweekly.com
E-mail a friend a link to this story. | 
