Big in Japan: Apple Retail Experience

The Kelly Letter owned shares of Apple (AAPL) stock before I owned an Apple computer. Our thesis was that the internet has unleashed the freedom to work on any computer and that such freedom would lead more people to choose the elegance and power of Apple's products. My research said so and we followed the conclusion in the portfolio, but I didn't immediately follow it in my own life. My office continued using PCs and I personally continued using a PC notebook.

That all just changed when I bought a MacBook Pro 17-inch at the Apple Store in Ginza, Tokyo. Most new Mac users rave about the solidity of the product, the no-bloatware out-of-box experience, and the sheer beauty of Apple's technology. What I want to focus on today, however, is Apple's superb retail experience.

I've always dreaded the PC upgrade cycle. It sucks. A trip to the typical electronics retailer in either the U.S. or Japan involves looking over dozens of machines adorned with stickers and barely clinging to flimsy metal shelves. The staff are usually bored out of their minds and act as if they're doing you a favor to respond to a call for help. Any questions you ask are met with blank stares followed by reading the product box for the answer. That's if you're lucky. If you're unlucky, you'll get a snide comment that it doesn't matter or you should already know the answer. There's usually loud, annoying music overhead, too. I can't get out of the places fast enough.

At the Apple Store, a focused family of products sits proudly atop gorgeous display tables that don't threaten to topple when you touch the machines. Using the machines is encouraged, too, because there's no risk of them blowing up in customer faces or freezing or running through a kaleidoscope of error messages, as happens routinely in PC shops. To be fair to the PCs, many of the error messages aren't their faults but, rather, the fault of the uninspired staff who never took the time to set them up for public display. In the Apple Store, all the machines are online, with correct times displayed, and fully functional. Want to check email? Do it. Want to open a document? Go ahead. Change settings to see if you can quickly set up a good work environment? Have at it.

Such a store shows a great deal of confidence in the products, which gives me confidence as a buyer. I'm not being rushed out the door with a flimsy piece of paper saying I have tech support for a year if I need it -- just call this number in India, but don't under any circumstances bother us here -- but am instead given all the time and freedom to arrive at about the only conclusion anybody can: I want one.

On my first visit, I was still thinking about the big switch from 20+ years of PC history and how much of an impact it would have on my work. Would it take one week, three weeks, two months to get up and running in a whole new way? I wasn't sure. So the reconnaissance mission came first. Right off the street, I was greeted by the pretty setting and settled in to exploring the MacBook Pros. A staff member, a friendly young woman sharp as a tack, asked if I needed any help.

Here's a quick aside that might not be immediately obvious to those who've never lived in a foreign country. There's an art to speaking to foreigners. On the one hand, you don't want to offend their language abilities by assuming they don't speak the local tongue. On the other, you don't want to alienate them by proceeding in a language they can't follow. Over here, I'm the foreigner, and appreciate people who ask me if I speak Japanese and then proceed normally when they find out I do. What I don't appreciate but what is unfortunately the norm, is that even after I say I speak Japanese and demonstrate it in the following conversation, I'm still treated differently, in an air of doubt or as a child.

On this regionally unique point, Apple scored in the top category. Every staff member I dealt with spoke to me politely and informatively, and in precisely the same way they spoke to the store's Japanese customers. Yet, they understood my desire to get a Mac with a U.S. keyboard, and told me that they could have it ready for me in no time. That's right, with no special shipping from the U.S., the Ginza store could install a U.S. keyboard on whatever machine I chose. What great service.

I ran through a list of questions, such as how to right-click, whether I could scroll with the trackpad, the ability to use certain investment services to which I subscribe, and so on. Yuuki, the sharp-as-a-tack woman I mentioned above, answered every question kindly and demonstrated how I could use the Mac my way. Something else I appreciated was the way she never insulted the way I was working on the PC. Her goal was not to degrade PCs or Windows in any way, but just to show me what the Mac could do and let it speak for itself. There's that confidence again.

By the time I left, I was already sure I'd be buying a Mac and went back to the office to start getting ready for the big switch. A week later, I was back in Ginza after making an appointment for personal shopping. Apple offers a private guide to you in choosing what it is you want to buy and then seeing you through the transaction. How's that for service? They call it Personal Shopping. In typical electronics shops, I never see the same person twice. The attitude is always, "yes, he bought it, now get him out the door fast!"

Unfortunately, the day that worked best for me was Yuuki's day off, but she set me up in the hands of her colleague, Takuya, whom she assured me was every bit as knowledgeable and friendly. Takuya was waiting at the appointed time, had the Mac I ordered ready to go, and walked me through several demonstrations. He also offered ahead of time to transfer all of my data from my old PC to the Mac for me, but I said I wanted to do it myself as a way to get acquainted with the new machine. He liked that idea.

He never pressured me to buy more. He showed me all four levels of the store so I'd know where I could get one-on-one technical support at the Genius Bar (again, reservations available online with a click, just like the Personal Shopping), where to see free how-to presentations in the theater, and where to buy accessories and software. We rode a cool glass elevator that enabled us to see each floor as we rode up and down, and he pointed out that Steve Jobs himself had requested that the stainless steel hand rail in the elevator be changed so that the mill lines of the steel went around the tube instead of along its length. "We care about details," Takuya said.

He asked if I wanted iWork software to help with the tasks I said I do at work, and showed me how it would help me. I said sure. He asked if I wanted to try a year of Mobile Me at a discount, and showed me its benefits. I said sure. He asked if I wanted some amazing little Bose speakers, and played heart-shaking music on them. I said no thanks, but made a mental note to get them later.

When my tally was finished, he added up the retail prices and then reduced each of them in front of me to get me a greater than 10% discount. Mind you, this was after I'd agreed to buy, so it was just a smart form of customer service. What a way to leave me even happier. They didn't entice me with lowball prices. They sold me on quality products, and then offered me savings as a form of thanks for the business. Very classy.

They put my new Mac in its slim box into a cool Apple bag with straps for my shoulders in case I wanted to carry it like a backpack. Takuya walked me to the door and wished me well, reminding me that I could call, email, or stop by any time.

When I got back to the office, I opened the box to see a beautifully packaged machine, almost beaming with pride at its own design and eager to show me what it could do. I put it on my desk, turned it on, and in very little time had moved my work over to the Mac.

Nothing popped up in my face. No virus software I don't need. No internet service offers. No confirm this, OK that, enable this, disable that, double-check this setting, track down that driver, find old application disks, or dust off the printer software. The machine booted up so quickly I thought it was broken at first. Nope. It really comes up in an eyeblink. Shuts down as fast, too, although just closing it works fine. Hours later, I pushed back my chair and looked at the sleek aluminum shape on the desk in a confident silence without fans or beeps, and joined other converts in wondering what had taken me so long.

You know what else I wondered? What new epiphanies awaited me at the Apple Store. What other little miracles of technology whispered my name? What excuse could I find to visit my new friends in Ginza, and buy something else from them?

As an investor, I can't think of a better result of fine retailing. The customer dying to come back is about as much as we can hope for.

As a customer, I'm just dying to go back. In fact, I will. Tomorrow.

Comments

[Mike M:]

Nice story Jason, welcome to our world......it is quite extraordinary the customer loyalty that Apple generate but your experience says it all really, it's in a different league I am sure you will agree. When you really get set up with big screens, time capsules, iPhones, Apple TV and MobileMe, the whole thing really takes off. I am such a fan that I bought $1m worth of Apple shares and so far have no complaints whatsoever. Long after the price is forgotten, the quality is always remembered. This simple little saying applies to everything of course not just Apple but it is so true. Well done on the action you have taken, you will not regret it.

Jun 15 08:30 AM

[Roger Knights:]

Once you bite ...
... You're bitten.

Jun 15 09:03 AM

[Mac'em X:]

Jason: As a frequent user of the Ginza Apple Store (and countless other Tokyo electronics stores) myself, I agree wholeheartedly. The Apple Store is an oasis - "Come on in, please look and touch, check your email, surf the web, relax in the theater, sit in on some classes, bring your own Mac or PC or whatever and use the WiFi all you like." With zero sales pressure. Your ascribing this to *confidence* is a good call, I think.

I've found great service in other stores, to be sure – and when there's a friendly, knowledgeable person helping out at a big-box retailer, you have to award extra credit for knowledge of such a wide range of products. But it's very hit-and-miss, and in my experience a matter of lucking out and finding the right individual. At a typical big Tokyo retailer, I find plenty of floor staff who can only read specs off of labels or brochures, or toss up the easiest answer and skedaddle away.

I won't be surprised if you get some "Apple fanboi" guff from people who just don't believe a good experience like this can exist. Yet there's nothing miraculous about it; it's really just ongoing passion for good products and good selling, matched by ongoing action. The only mystery is why PC makers and Microsoft still can't or won't do the same.

Jun 15 09:04 AM

[Gauston in DC:]

Very well written article. I've been a Mac fan since design school in the mid-nineties and have been trying to help people see the light ever since ... Just wish I purchased stock back then ... But I have stock now and could be happier.
Glad to see another person has made the switch -- you'll be so happy you did.

Jun 15 09:32 AM

[Gauston in DC:]

Could not be happier ....


On Jun 15 09:32 AM Gauston in DC wrote:

> Very well written article. I've been a Mac fan since design school
> in the mid-nineties and have been trying to help people see the light
> ever since ... Just wish I purchased stock back then ... But I have
> stock now and could be happier.
> Glad to see another person has made the switch -- you'll be so happy
> you did.

Jun 15 09:33 AM

[SmartyGuy:]

Very enjoyable read, thank you. And thank goodness for Apple Stores.

Jun 15 09:44 AM

[mollytjm:]

when i took my best friend, a very loudly loyal pc fan, to the apple store because she, a music fanatic, thought she MIGHT want an ipod, it was the same experience for her. she was stunned by it, being use to CompUSA (remember them?) indifference.
i was so proud of Apple (i'm also a stock holder) in the way she was treated...it was great to watch. In the end she bought the high end iPod (no iTouch out at that time) and a zillion accessories and she couldn't stop talking about how amazing the experience was.

last week i was at a family wedding when 2 different sets of relatives, living in different states and not in touch with each other, came over and asked me if i thought they should switch to Macs since they heard they were easier to use. These were people in their 60's, with some $. They had each been to an Apple store in their area, just out of curiosity and with some prejudice against Apple. They were blown away by the experience and after 'playing with the toys' and our wedding conversations, decided to make the switch to Macs.
They aren't alone. It's happening all over the place. Quality and great service can't be beat when you have a company that also understands how to make a great profit from it! This is a wonderful stock!
thank you for a great article!

Jun 15 10:36 AM

[SoCalBuck:]

Jason's beautifully written article touch many of the reasons that the Apple experience, the elegant and integrated design of all things Apple, sets this brand head & shoulders above all other consumer brands. Having spent my 37 year career in consumer products product development and design as well as business strategy, I became smitten with Apple the first time I really paid attention. Fortunately I bought the stock too, and now have a comfortable retirement.... with my macs and my iPhone, etc. Jobs and his staff have created a culture and an ethic that should keep Apple at the forefront of quality for many many years.

Jun 15 03:21 PM

[Stephen Col...:]

Welcome to the REAL world. Apple is an ecosystem for those who demand and receive excellence at all times in all things. Apple sometimes fails but is swift to admit its failure and boldly committed to correcting its error. For example, last year the "moblie me" launch was ham-handed. Now, "mobile me" is under new management and it works brilliantly. Apple has a culture that rewards perfection, kindness, and simplicity. I own a PowerBook G4 that is five years old and I just had it reconditioned with a new motherboard, new hard drive, and they reloaded all of my software for me. For $300 I have a "new" computer that they say should last for at least three more years. Apple's confidence in its quality is the most endearing part of being in the Apple ecosystem. They want me to be satisfied. I am euphoric!

Jun 15 06:29 PM

[Constable Odo:]

Ossu. Your article gave me some hope for Apple sales in Japan. Sure wish I could've met Yuuki, too. I'm glad you liked the customer service. It seems analysts don't care much for Apple retail stores. They probably think Apple should just drop the fanciness and reduce prices to compete with Dell and Acer or maybe even become like those e-shops in Akihabara. I'm not sure what WS has against knowledgeable staff and pleasant surroundings to choose one's purchase. Almost assuredly Apple's computer prices are higher due to the added sales environment and customer support staff. But, so what.

All my past Apple products have been around for years and years and I think those retail stores make you forget about the added costs. Apple purchasers are always said to be fooled by Apple and the glitz is worth nothing. If you have to spend money, you might as well feel as if you're a special customer and you don't mind spending a bit more.

Just tell me one more thing. Are the Japanese buying Macs or not? I still see a lot of them in J-dramas for the exec staff, but I guess the company drones are still running NECs or whatever J-computer is cheap. But please tell me that there are Japanese consumers actually buying Mac notebooks and iMacs and the retail stores are somewhat "packed".

SoftBank and the iPhone went over like a lead balloon or that's what I've heard from some sources. Even Aya Ueto couldn't get the iPhone sold in quantity. Hopefully iPods are still outselling Walkmans. I'm a long-term shareholder, so every bit of encouraging news always helps my peace of mind, if not the share price.

Go-kurousan datta, ne.

Jun 16 06:41 PM

[neutrino23:]

I have had similar happy experiences at the Apple stores. My question is why aren't more companies like this? My guess is that because the accountants have too much sway. They look at things like the cool elevator or the well trained staff and they just see an expense ready to be cut.

Jun 17 01:18 AM

[Neil Anderson:]

I've never been to an Apple store, but friends rave about the experience. I do everything over the Internet and Apple's online ordering rocks.

Jun 20 03:31 PM

[songcarver:]

That's a lovely story, thank you for sharing.

Also keep in mind that if you have an unsolved problem, or can't find a particular software solution, just ask out loud and you'll usually get a bevy of helpful answers in no time. The Mac community is a great asset for support. You'll also find a majority of third-party mac-centric software and hardware companies aspire to this level of customer service as well, and will give helpful responses.

Jun 21 10:25 PM

[User 461863:]

So what happened next? I look forward to the continuing story!

Jul 27 07:23 PM

[5prongjack:]

Nice....as nice as people's experience when buying a luxury car such as lexus or bmw...their dealerships are nicely furnished and everyone is 'oh so nice' while they change your break fluid for *just* $300.00 while the fuild takes 5 min to change and really only costs $26.00. You bet they will be nice as they see $ bills walking up closer.
These lexus owners keep reassuring themselves how they made a good purchase...as they sit stuck in traffic next my $35 break fluid changed by Jiffy Lube.
But some people like this 'service' ...they like to feel important and seen. I have no issues walking into bestbuy and picking out the machine I want...I could care less if someone dances around me while I grab the box. The dance is not worth extra $500.00 (the 1/3 of my machine cost that is twice as fast as you apple).
Only fools worship tools.

Aug 04 07:16 PM

[Kohi:]

I only wish this were true of the Richmond, VA Apple store. I recently purchased an iPhone and the Apple specialist had no clue on how roaming works on the iPhone. He could have easily told me that he did not know or he could bring in a person who could answer my question, but he proceeded to give me incorrect information. If they only sold the hardware and did not activate the phones their lack of knowledge could be justified.

I am in the market for a new computer - primary use would be video editing . I returned this past Saturday to evaluate the 15" Macbook Pro. I carefully avoided the specialist who "helped" me with my iPhone. I found another specialist who was very eager to help but when I asked what "NVIDIA GeForce 9400M + 9600M GT with 512MB" meant, he was unable to help me. He did get me another specialist who showed me how to switch between the two cards. Neither could help me on benchmark experience for the Macbook pro and guided me to a website that gave benchmark experience for the Mac Pro????!!

I have lived most of my life in Arizona and California and the Richmond store employees seem to have a bigger chip on their shoulders.

BTW the only reason I am reading this blog is because I was directed to this site through the comments section on "Apple Mac Book Vs Dell XPS – Help Me Decide!" (www.garryconn.com/appl...)

I wish I had someone as smart as Yuuki to help with my purchase decision.

Aug 17 09:03 PM