
What can you do as a small business owner when a mega-giant rolls into town, selling exactly the same products as you do? This is the scenario faced by a lot of mom and pop stores when a company like Wal-Mart makes its presence known in a city, driving prices down and effectively putting many of these smaller shops out of business. But what if the Goliath is not trying to compete on price?
This is the situation that arrived in Vancouver on Saturday when the city’s first Apple Store opened in Pacific Centre. Located upstairs in the shopping mall, across from Harry Rosen and next to the newly-opened H&M, the Apple Store drew quite the crowd on opening day. Yes, there was a promise of a free t-shirt to the first 1000 people who showed up, but I’m thinking that wasn’t the primary motivation for these folks. They wanted the Apple experience. They wanted to visit the Genius Bar.
Granted, if any of these people wanted to have the Apple experience, they could have taken a quick jaunt south of the border to any number of Apple Stores in Washington state. By the same accord, if they wanted to purchase the latest iPod, MacBook, or iMac, they could have done that at any number of existing retailers in the Greater Vancouver area. Why is it, then, that people would be so interested in Vancouver’s first Apple Store?
While big box stores like Future Shop and Best Buy have little to worry about, where does the arrival of the Apple Store leave other retailers like Simply Computing and Westworld that had previously been the only Apple-only game in town? They can certainly try to compete on price, because the Apple Store sells their products at full retail. An alternative strategy would be to compete on value, possibly offering an extended warranty or some other customer-oriented gesture.
If you were running Simply Computing, how would you respond to the arrival of the Apple Store? Will the Apple Store help create more Apple brand recognition for your store or will it ultimately just snatch your customers away?