Ginza Apple Store - A Follow-Up

In January, 2004 Ginza then-store manager Steve Cano fielded questions from members of the Ringo Macintosh Users Group, an English-speaking association of…well, Macintosh users. During the session he outlined some lessons that Apple had learned in opening the first-ever international store, and also expounded some on the philosophy of the stores.

Cano, who previously managed the Palo Alto (N. Calif.) and SoHo (NYC) retail stores, said Apple had expectations for the store, "and we are exceeding those expectations on just about every level." He said the company has surveyed customers about the store, and the responses have been "favorable." Even so, he said, "We're learning every day."

He recalled how the SoHo store had become so successful. "And Steve was trying to figure out where we could open up the next store...the next great store." Luckily, they found a great spot on the Ginza in Tokyo, one of the highest traffic spots in the world. "On every level, it's the best store that Apple has ever built," Cano said.

Generally, he said, people have a good experience with the Apple stores, with the key word being "experience." He said Apple found that people were traveling long distances to visit the SoHo store, not only because of the products, but because they liked the experience.

He said that the fifth-floor, paid training classes are very popular, and that Apple was expanding the space to accommodate more classes. He noted that initially the store offered classes in English, but there had been very little demand, and the pre-scheduled classes had been dropped. However, he said he was open to reinstating English classes if there was a need or demand.

Cano said he was in the process of cranking up more services to businesses, both small and large. At the time, business sales were being directed to Apple's on-line Web site. But he said the store would soon offer a complete line of services, not just sales.

In response to a joking question about the slowness of the two elevators in the store (Steve Jobs calls them "shuttles"), Cano acknowledged their speed. But he noted that Jobs or V-P Retail Ron Johnson had told him that there are fast elevators everyone in Tokyo. "We want an experience," he was told. Cano added, "We try to create a different experience here…a very Apple experience."

He said that Apple didn't realize how popular English-language versions of software and computers would be. Cano said the store sells 10-12 computers a day to customers who ask for English-version keyboards.

"In case it isn't clear," Cano joked, "this is a great place to buy computers." He continued, "I know all of you are intelligent and Mac-saavy people. All of you think, 'I'll buy it on-line or at Akihabara (electronics shopping district).'" Cano urged the user group members, "Give us a chance. We'll try to compare prices, and maybe even match the price." He added that if there was a problem with a computer, everyone in the store was available to help as needed. He repeated, "Please give us a try."

An audience member joked about the system of "points" that Japanese electronics retailers use to draw customers. The price of products includes a certain number of bonus points that can be accumulated, and then redeemed for merchandise, effectively giving a discount on purchases. "Give us a try. Maybe we'll figure out that by giving you five points…," Cano told the group. "If it's points, if it's price…we want to do what it takes to help convert people."

A user group member asked why the store was located in the Ginza, which apparently some consider as an older, more formal shopping area, rather than in one of Tokyo's more modern, fast-paced, and well-established electronics shopping districts. He recalled that the goal in opening the SoHo (NYC) store was to "grow the market," and the same is true of the Ginza store. "If all we do is sell to Macintosh users, we'll end up going out of business," he explained. "Our goal is to grow the market."

He said perhaps people will begin rediscovering the Ginza because of their visits to the new Apple store there.

He noted that Apple is the third most-recognized brand in the world. And just as Apple doesn't co-market it's brand with other "lesser" brands, he said Apple doesn't co-market its brand in the usual places or venues. "I have more customers walking by my store here than I'd ever have in Akihabara" he said. Lots of people come into the store who have never touched a computer, he said, and who don't know what a computer does, and more importantly, what a computer can do for them. "In Akihabara, they know what technology is," Cano said. So, it's a good opportunity for Apple to sell to new computer users, not just current computer owners.

He said that about 50% of the people who purchase computers from the store never considered buying a Macintosh, "and somehow our staff convinces them to."

"Financially, I should say, we're doing well," Cano said. "We are by far the largest Apple retailer in Japan now…times many." Previously, the largest volume Apple retailer in Japan was Yodobashi in the Shinjuku district, Cano said. It's not as if you locate a car dealership next to another car dealership, he explained. "We're really trying to get out there and get in front of people who never considered buying Apple, and show them why, for the first time in their life, why the need to."

He said that on Saturdays and Sundays, the store is, "packed with people who have no idea where they are," because they're not veteran computer users. "We're showing them possibilities, showing them things they've never considered," Cano said. "And if we do our job correctly, we've just sold a computer to someone who never thought they were going to buy one," Cano said.

An audience member again joked that some people would spend two hours at the Genius Bar, and then walk down the street to buy their computer at another store, just to save 200 yen (about $1.82!). After some laughter from the audience, Cano said, "Maybe I need to make a sign up that says, 'Don't be afraid to ask for the lowest price.'"

In response to an audience member's question about sales and other retailers, Cano said that when the SoHo store opened, it grew the market for everyone. He said sales at New York City region resellers all went up "over 30%" after the SoHo store opened, including at CompUSA, and J&R Computer World. "So it's good for everybody," Cano said.

Also, he said, "People walk in this store who never considered technology. They leave here, and suddenly they see the possibilities--aspirational marketing." Some then go buy a Windows computer, and some of those buy that computer from Apple's resellers who also happen to sell Windows computers. The same occurs with people discovering mp3 players. "So it does bring the entire market up," Cano said. "There's enough out there."

In response to a question, Cano said the store carries OS X in three versions: English, Japanese and what he called International. He said the store (at the time) had English-language versions of manuals for Photoshop and other high-end program in Acrobat (pdf) format only, but hoped to soon begin carrying complete English versions of certain programs.

Cano concluded by thanking the attendees, and said that for users groups, "We really want to make (the store) their home."