A Retail Giant Created by Best Employees

A Retail Giant Created by Best Employees

Introduction

In the retail markets of all industries, Apple has clearly distinguished itself from its competitors with its significant revenue. In 2010, as stated by Farrell and Staff (2011), Apple earned approximately $6,000 per square foot, which guaranteed Apple to be the most profitable retailor. The second retailor on the list, Tiffany, only accomplished half of Apple's profitability (Farrell & Staff, 2011). Speaking of Apple's success, one cannot fail to mention Steve Jobs, the person who established every "Apple Standard." Under Steve's supervision, Apple accomplished great success in the development of a retail concept and technology development in Jobs' era; however, the legend left Apple forever. Without the master who proved himself an excellent rudder, will the new executives take Apple in the wrong direction? At Jobs's time, Apple realized its high profit model through genius concept in detail-oriented retail centers sales model, which has been discussed as one of the most successful retail cases ever. Apple's retail store consists of several successful elements, including the fantastic architecture, the unique products exhibiting methods, and the most "Apple" ingredient, the Apple employees.

Apple's Model of Retail Stores

Dramatic Design of Apple Stores

One of the most popular stereotypes about Apple is that its fabulous retail store is a major reason for its success. Like other scholars, Stewart (2011) praised Apple for its dramatic retail store design. Apple retail stores, as Stewart commented, were nothing like traditional cheap and ugly retail stores. Instead, Apple makes great employment of glass in its design. The transplant material gives Apple store a luxurious and advanced look, which is an appearance that all Apple's products share. Apple has now more than 300 retail stores all around the world. Many of them have even become local symbols, such as the transparent cube on Fifth Avenue in New York and the incredible pyramid in Shanghai. Those stores have not only generated a good reputation for Apple, but also won 42 awards for their designers. Besides the brilliant designers who Apple should give credit to, Steve Jobs also should be awarded the honor. As a person famous for his stubborn attention to detail, Jobs supervised each step in the process. The designer, Mr. Bohlin, thought that Jobs was brilliant in his suggestions. Jobs's advices finally contributed to the establishment of the marvelous Apple Palace. While Apple is making art pieces, some of its opponents are still presenting their products in conventional and uncomfortable buildings. The big contrast not only gives customer strong motivations to shop in delightful places, but also drive thousands of people to work for Apple. After all, who can resist the attraction of working in such a dramatic place?

Great In-Store Experience

Besides the stunning buildings, the shopping experience is another attraction that customers favor so intensely. Unlike traditional retail stores where products are placed within their categories, Apple emphasizes how the products can be used (Kane & Sherr, 2011). The Ipod, Iphone, and other Iproducts are all displayed on wood desks for customers to try. To make the experience better, Apple chooses materials such as wood and glasses, all of which create a comfortable environment, to construct the stores. Though Apple has great shopping environment, the most precious element of an Apple store is its employees. In an Apple store, no one is ceaselessly promoting the products. Sales associates do not approach unless they are asked to do so. The atmosphere in Apple stores is always relaxed and welcoming (Kane & Sherr, 2011). Customers can easily spend hours there. The long time of exploration makes it possible for customers to learn deeply about products and increase their interest in purchasing.

Apple's achievement is so significant that some of its competitors such as Best Buy and Microsoft feel reluctant to ignore the pressure from Apple. According to Kane and Sherr (2011), Best Buy and Microsoft both copied part of Apple's retail strategies, yet neither could reproduce Apple's achievement. The reason for Best Buy and Microsoft's failure in transplanting Apple's service is that both electronic retailors had ignored the most important chain of the cycle, the Apple retail store employees.

Warming Employees

Beautiful buildings and wonderful environment make people willing to visit, but employees encourage the purchase. To shorten the time of paying, Apple employees offer hand-handle terminals in case customers want to make an instant purchase. Despite of the payment convenience, it is the warming service that generates Apple a good reputation. As claimed by Hafner (2007), Apple gained its reputation in high-tech products, but retail stores, especially the employees who provided great services, consolidated its dominant position in the retail market. In an Apple store, customers can always enjoy the service provided by Apple employees. The "secret formula" of "personal attention paid to customers," "the floor" fulfilled with "relentlessly smiling employees," and "technicians work behind the so-called genius bar" offers special experience and communicates Apple identity to customers (Hafner, 2007, p. 2). In an Apple store, employees let customers use a device as long as they want without interruption, teach customers whatever they want to know, and suggest customers to buy what is most suitable for them. Ms. Jade is a perfect example to illustrate Apple employees' consideration. Ms. Jade spent several months in a Manhattan Apple store writing her book without interruption. Considerate Apple employees even give her some extra time every day to finish her work. The special treatment offered by Apple employees, that customers can get from nowhere else, reduces customers' hesitating to accept the high prices in the stores. (Hafner, 2007)

Choose Fans to Increase Brand Identification

The service providers, Apple employees, are carefully selected from thousands of candidates. According to Segal (2012), it is more difficult to get into an Apple store than to be accepted by Stanford. Apple makes recruitment decisions based on candidates' interpersonal skills rather than technical skills. Apple looks for employees who want to be part of Apple rather than merely look for a job. Among all the criteria, strong brand identification is a necessity (Segal, 2012).

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