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Both Google and eBay started out engaging strictly in e-commerce, and then expanded their operations to include a physical presence. Both companies are building a physical presence in an attempt to mitigate some of the problems facing the players in the e-commerce sector. These two companies are attempting to reduce brand confusion among customers, and are trying to provide additional points of purchase in an attempt to boost impulse buys, spread awareness about product capabilities, and create hype.
In September 2011, Google opened its first branded brick-and-mortar store called “Chromezone.” Google’s store on London’s Tottenham Court Road featured a 285 square foot department, which included Google’s new Chromebook laptops and accessories. Google has also opened a physical store in Australia called Androidland for Android Market. Androidland features displays and games that help shoppers learn about Android phones and tablets. It is a physical location for customers to learn more about Google’s products and software. The department, which is very similar to the Apple Store concept in that it is not focused on devices, is all about creating an Android experience. For Google, it is not just about boosting sales, it is about reduce brand and device confusion in an industry that is very new and that can be quite confusing.
If Google’s Chromezone and Androidland stores are successful, we could potentially see hundreds of these stores selling not only Google’s affiliate products, but also all of its services such as AdWords for small businesses, Google Offers, Picasa subscriptions, Google Talk, mobile phones and more. Imagine a world in which Google stores, selling Androids, Chromebooks, and its next generation services are as dominant and exciting as Apple Stores. Wireless providers would probably go out of business. People would go to the phone provider to choose the phone first, then choose the service plan and provider from the brand’s store. No longer will companies like Verizon, AT&T, and T-Mobile be the primary destination for phone buying.

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