Thursday, October 20, 2011

Beats by Dre Retail Store Advantages

One announcement at Tuesday’s press conference that has been overlooked by many is the decision to open a Beats by Dre retail store. It will be located in lower Manhattan and the plan is to keep it open till the end of the holiday season. One part of the press conference that caught my attention was how Jimmy Iovine kept comparing the newly released headphones to an exclusive pair of sneakers that can only be found in boutique shops. 

Now I will give my opinion on why I feel this newest development could lead to a new business for the Beats by Dre Company. If the test store is successful, it could lead to a whole new business for the company. There are many reasons as to why a Beats by Dre retail store could be successful and beneficial to the company. Nothing creates more brand recognition and growth in popularity than a retail store (look at NikeTown & Apple Stores).

Some might ask what a Beats by Dre retail store would even have or sell. I mean, you can find any headphone at any Best Buy or any electronic store around the country, and pretty much anything can be found online. While all of this is true, there is no place that sells all of their growing number of products in one place. The key to merchandising is creating a brand. When you walk into a NikeTown, all you see is the swoosh logo, and the same goes for Apple and its logo. Walking into an electronic store and seeing a Beats product would feel completely different than walking into a Beats retail store with the infamous “b” logo surrounding you.

A customization counter could be another added business that only a retail store could bring. With the popularity of NikeID and ColorWare, the retail stores could feature a booth which would let you customize your Beats. To play off the sneaker comparison, retail stores could sell ultra exclusive headphones that wouldn’t be available online or at other retail stores. This would help create buzz in the marketplace which could help make Beats headphones turn into the equivalent of Air Jordan sneakers. Another advantage would be that the company could showcase its partnerships with Beats incorporated HTC, HP and even Chrysler products. Employees could help demonstrate the innovations that the partnerships have. Along with the obvious ultra-premium headphones and sound systems, customers would be able to test out HP laptops, HTC mobile phones, and Chrysler cars all with Beats technology. For all of these reasons and more, I feel like the upcoming retail store in NYC could be the start of a whole new journey for the Beats by Dre Company.

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