Every Friday we look into the most important news from the retail world of watches. Marketing, distribution, and sales strategies are highlighted, to keep you up to date on how the business operates. Today, we look at Apple’s changing marketing and sales strategy for its new smartwatch.

Long anticipated product launches of any kind usually follow the same pattern: a lot of speculation and media hype before the release, and long lines of customers in front of the store on the release day. In some cases, the truly loyal and motivated customers have been known to camp outside the store for days in advance.

It is no different for the release of Apple products, which often see massive lines in front of their physical stores. Sure, media hype and the novelty of being the first to own something plays a role. But it is also a fundamental question of supply and demand: there are more customers wanting the product than the brand can actually deliver on that given day.

In many ways, a brand has no interest to fix this “problem” because it’s great for PR. For Apple, the long lines and the inability to meet consumer demand make headlines in the media, which affirms that their products are highly sought after. Scarcity sells, and people want something they can’t (or very few) have.

Leaked info

It’s all the more surprising, then, that Apple has had a rethink in strategy. According to a leaked memo (and we all love leaks!) obtained by Business Insider, Apple is changing its distribution and marketing philosophy for the Apple Watch.

According to the memo, reportedly from Apple retail chief Angela Ahrendts, staff should push customers to shop for the Apple Watch online, and not in physical stores. Here is what the memo reportedly had to say:

The brand’s “significant change in mindset” means changing how it deals with the launch of new products and how it fundamentally deals with consumer demand. No more long queues and camping out in front of physical locations. (At least theoretically… something tells me the true fans will not be deterred from the usual product launch ritual.) The question, then, is why the change?

The Online vs. Offline Debate

With increasing demand for its products, keeping customers happy is important for any brand. And eventually, order backlogs or waiting in long lines to get the next biggest thing lose their novelty.

From the memo, it seems that Apple now cares more about its ability to distribute its products efficiently than to maximize its publicity. It’s a question of optimizing product delivery and narrowing the gap between customer demand and product availability. Evidently, Apple looks to accomplish that by prioritizing its online channel.

And it’s online strategy is already in effect, according to Business Insider. The only way to get your hands on the Apple Watch in the UK is to order it online and have it delivered at home. Customers won’t even be able to pick it up in-store, even if they order it from inside one of their stores! The US strategy is expected to be no different.

What does this all mean for the debate between online retail and the traditional brick-and-mortar model? At Europa Star, we have already written about brands increasingly going online as part of a digital retail strategy. However, the majority of watch sales continue to be in person through traditional channels. We will soon see how the online and offline numbers stack up for the Apple Watch. But it seems that if any brand is able to scale its online sales - and maybe eventually stop sales in physical stores altogether – it would certainly be Apple. (VJ)