A Microsoft spokesperson stated that Microsoft continually evaluates its retail strategy to meet the changing needs of our customers and has decided to consolidate its channels in the Chinese mainland market. Industry insiders pointed out that Microsoft's closure of physical stores was due to the lackluster response of its products, such as Surface tablets, in the consumer market, prompting a global strategic adjustment.
"Star Daily" July 1 News (Reporter Huang Xinyi) Some users on social media platforms posted that Microsoft will close all offline authorized stores in the country, and only retain official website mall and JD flagship store.
Microsoft spokesperson responded that Microsoft continuously evaluates its retail strategy to meet the changing needs of customers. Microsoft has decided to integrate channels in the mainland China market. Customers can still access Microsoft's comprehensive consumer products and services through retail partners and Microsoft.com.
"Star Daily" reporters noticed that as early as June 2020, Microsoft had announced on its official website that it planned to permanently close almost all Microsoft directly operated stores worldwide, leaving only four locations to continue to operate, and shift its retail business online. At that time, Microsoft had nearly 100 physical stores globally, most of which were in the United States. The physical stores mainly display and sell hardware products such as laptops. In the statement, Microsoft mentioned that the company will adopt a new retail strategy and continue to invest in online stores.
Since all Microsoft stores in China are authorized stores rather than directly operated stores, the 2020 Microsoft store closure plan did not affect offline stores in China.
According to the latest financial report, Microsoft Surface device revenue fell significantly by 17% in the third quarter. Despite the introduction of new Surface devices and hardware portfolio adjustments in layoffs, device revenue has been declining for 12 consecutive months.
Industry insiders pointed out that Microsoft's closure of physical stores is due to the poor response of its consumer market products such as the Surface tablet, and for this reason, they are undergoing global strategic adjustments.
Zhang Yi, CEO and chief analyst at Ai Media Consulting, believes that Surface is indeed poorly received. "The product's market positioning is unclear and the price is high, which has led to consumers not buying and the parent company not getting good returns. Microsoft is forced to reduce costs and play defense."
A consumer industry analyst told "Star Daily" reporters that Microsoft does not pay enough attention to its hardware products such as Surface tablets. In the face of the big model wave, artificial intelligence and cloud computing have become Microsoft's focus.
Currently, on the official Microsoft store, there are 51 stores in mainland China, but most of them are Microsoft experience stores and Xbox retail experience stores. Only seven stores have the name "Microsoft Authorized Store", located in Shanghai, Shenyang, Shenzhen, Wuhan and other places.
"Star Daily" reporters contacted several Microsoft authorized stores. The authorized store in Jiading, Shanghai, closed a few months ago, and the person in charge of the authorized store in Wuhan, which is still shown on the Microsoft official website, told reporters that it has been closed for more than two years.
Other store owners said that if the store only sells computer equipment, it will indeed close, while stores with richer product portfolios can also choose to transform into Xbox retail experience stores.