Former Apple Senior Vice President of Retail (then ousted JCPenney CEO) Ron Johnson made a somewhat rare public-facing appearance on Andreessen Horowitz’s podcast. The discussion comes in at just under half an hour and features the former head of Apple Retail discussing his experience with leading the Apple Store as well as the challenge for up-and-coming startup brands to afford brick-and-mortar retail channels, but more interesting from an Apple perspective is Johnson’s praise for Microsoft’s retail stores and the Surface 3 tablet that the company heavily markets against Apple’s MacBook Air.
“I think the Microsoft stores have succeeded much more than popular opinion. […] I think it’s really helped, for instance, the Surface 3. It’s a really great product and we all know that. Everyone who has tried a Surface 3 is pretty blown away with the software, the interaction, how it can be a tablet and a computer, its part of the future. Without those stores that Surface 3 wouldn’t be where it is today.”
The former Apple Retail SVP went on to say that comparing Microsoft’s retail stores with Apple’s own retail presence is like comparing two different restaurants by the crowd alone.
Aside from offering kudos to Microsoft’s retail approach and iPad/MacBook Air competitor, Johnson did talk about the challenge startup brands face with expensive retail channels and getting products in front of customers.
In today’s world, which is multichannel, unfortunately we’re in a period where stores will become increasingly less important in the total distribution mix. The world is moving online. It’s moving online more rapidly than I think a lot of us imagined, a lot more than I did, and so the challenge for a startup is given that physical retail is expensive and knowing that it’ll be less important to your mix long term, what’s the right mix? How does it compliment your brand, and what’s the role of that in your mix?
Johnson related this back to Apple’s own experience in retail describing Apple’s challenge with 3% marketshare at a time when no one could try products. Johnson added that Apple hasn’t had a bad product launch since Apple’s retail presence started due to the hands-on experience retail stores create. The conversation didn’t go without hinting at the upcoming iPhone 6 event:
If Apple comes out with a new product on September 9th, you can guarantee those stores will be filled with people trying to touch it, try it, see what it’s all about, and that’s a critical asset for Apple and its distribution system. It enables their creativity of a chance to be heard by the marketplace.
Ron Johnson, of course, was tapped to run the Apple Retail Store chain when it debuted in 2001 until 2011 when he announced his retirement from Apple to take the CEO role at retailer JCPenney. Johnson was eventually replaced by John Browett, who had a short run at Apple. Then Johnson himself had a relatively short run at the clothing retailer being fired after Browett. Johnson, of course, did not return to Apple, though, as Angela Ahrendts left her role as CEO of Burberry to take the reigns.
As for Ron Johnson’s appearance on a16z’s podcast, you can catch the full interview here.
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Praise for Microsoft?
He must be a trolling corporate shill, right?
Lol, probably. I can almost hear him being sarcastic about it. “Microsoft is just sooooooo intuitive, and simplistic; it’s practically a crime! If only Apple was like that :-(“
Looking for a new job probably (at MS), lol. ;-)
lol the Surface 3 wouldn’t be where it is today. And where exactly is that? Sitting on the shelf in an empty Microsoft Store while people are over the road in the Apple Store checking out the MacBook Air.
That’s what I was thinking.
Ouch!
Say what you will but the Surface Pro 3 is an excellent device. If I weren’t so heavily invested in Apple I’d buy it.
Agreed, it is an excellent device no doubt. I think the challenge is to convince people they want a hybrid rather than a great laptop and a great tablet. An iPad Air is still much lighter, thinner, and longer lasting battery. A MacBook Air has a normal comfortable clamshell design with excellent keyboard and big trackpad. The Surface Pro 3 isn’t cheap either, cheaper than a MBA and an iPad Air, but that just begs the question, is the SP3 only for people on tighter budgets? A MacBook Air and an iPad Mini Retina is a tough package to compete against. The SP3 is an Excellent device, but I wouldn’t want it (that’s the problem).
Oh, forgot to mention the MacBook Air also has much longer battery life than the SP3.
The Surface 3 screams compromise.
Windows 8 still contains tons of windows made for the mouse only and a lot of icons dating from Windows XP and before…
he’s out of his mind.
Guess what Windows 8 is suppose to have applications that are made for use with a mouse. Guess what the Surface Pro 3 comes with? A keyboard/trackpad, or you can plug a USB mouse in… No i’m not a Windows fanboy and i’m sending this message from my MBP. I can’t stand people who talk down on other products just because of small things like a few fucking icons that still remain from Windows XP.
I’m trying not to be cynical, but that sounds like a paid (or soon to be paid) prepared statement. Did he recently take consulting position with MS?
Surface 3 seems to be a great product, but only with another operating system can it be a competitive one.
Hmm…looks like someone is looking for a job at Microsoft (or has already been hired there).
“Former Apple SVP of Retail Ron Johnson” enough said.
Surface is so good they slashed its price last week. http://www.therem.org/microsoft-surface-2-and-surface-3-pro-price-are-slashed-by-microsoft-to-boost-sales/1216022/
So? I phone 5 is dirt cheap. But you still love it, right?
The iPhone 5 is also just about 3 years old. The Surface Pro 3 is just a few months old and a product they actually lose quite a lot of money on. iPhone is still massively profitable. All of them.
s/compliment/complement/ ?
I don’t think the surface pro is a bad product. I would give praise to Microsofts design team for making an original tablet. It’s the only other tablet out there that has its own look, feel, market. At least it’s not Samsung, HTC, Asus making products trying to be an iPad. It has its own vision of what it should be.
Personaly that’s what I like about Windows 8. Coming from someone rooted in OS X/iOS it definitely has its own look and feel and can’t wait until Microsoft goes further with it. This is their make or break moment just as Apple had in the 90’s. I wish them well.
no wonder he got sack in JCPenny. No credibility. Serve you right. BTW you are passe. Get Out!! haha
With him pictured in the MS store, I bet MS reported they were crowded at that moment. I bet he could almost hear the tumbleweed rolling across the floor there!
“Former …” means, not part of it, searching for a new job, not successful until he quits Apple, not interested for the market, …
He’s not praising Microsoft, he’s praising his model for product-driven retail.
He must be angling for a job at Microsoft.
The Surface 3 did get one thing right, finally – that Microsoft’s offering is fire and foremost a laptop – and must have a laptop size screen.
It doesn’t work well as a tablet. But there is absolutely nothing wrong with having a laptop that is as thin and light as a tablet (it’s not, but it gets closer than some other laptops), or has a detachable keyboard, as long as the keyboard is still quality.
But where his remarks are bizarre, is in thinking that the software works good in the dual mode – it doesn’t. The surface 3 is not a great tablet, but its a fine, if rather expensive, laptop.
Reblogged this on SHRINIVAS GANESAN and commented:
“If Apple comes out with a new product on September 9th, you can guarantee those stores will be filled with people trying to touch it, try it, see what it’s all about, and that’s a critical asset for Apple and its distribution system. It enables their creativity of a chance to be heard by the marketplace.”
There is no denying that I love Apple Products and services. I use a majority of them, but I do think the Surface 3 is a good idea even though Apple talks down on them. As someone mentioned, I just don’t like the OS. If it was replaced with an Apple OS, it would probably be making a lot more sales…
I wouldn’t get a Surface 3, but a Laplet, not a bad idea. I mean we already have an iPhone, iPad, macbook pro.. we have enough to carry around, why not merge the ones that need to be merged and make it POWERFUL. Just thoughts.
“I think the Microsoft stores have succeeded much more than popular opinion” – really? Because there’s a Microsoft store in the mall near my office and I never see anyone in there.
Ron’s job hunting isn’t he? *cue the brown nose comments Mr. Johnson ;)