From
left to right, Red Cell officials Avian Hosein-Ali, manager
of the El Socorro Store, Joe Pires Jr, chairman, Rafi Naqui,
marketing manager and Mandy Anderson, administrative manager.
About
nine weeks ago, on the night of March 24, businessman Joe
Pires finally got the telephone call he had been waiting
for since the end of November last year.
It was two weeks before Digicel opened for business and
the long-awaited physical interconnection between TSTTs
bmobile network and Digicels network was working.
The call, on Piress Digicel mobile phone, came for
Red Cell to mobilise.
Red Cell is the largest single distributor of Digicel-branded
phones in Trinidad. The company operates 13 Red Cell stores
and three Digicel flagship stores.
When
you think of Digicel, we want you to think of Red Cell,
exclaims Pires, who took over the management of Caribbean
Chemicals after the death of his father Joe Pires Snr 13
years ago.
Pires, who is the chairman of Bowen Boats and a director
of Tonys Romas and 51† on Cipriani Bouvelard,
had been selling mobile phones for the last 12 years.
Jomatec, his cellular company at the time, was one of the
first authorised dealers for TSTT. Four years ago, Joe met
with Digicel officials when they came to Trinidad. He liked
what they had to say and had to make a decision.
When
I saw these entrepreneurs... These are people who are putting
their lives, their money, their investment and their time
on the line. They were very receptive to my ideas, and to
finding how we could work and have a good relationship.
Digicel was encouraging entrepreneurship.
In August last year, Pires signed the leases for his Red
Cell locations. He was told that he had to be ready by November
30, 2005, the date that Digicel had set for its big launch.
Then the opening date changed to December 15, 2005. Later,
a press release was issued setting the new date as March
2006. Digicel eventually began retailing phones in the local
market on April 6.
The company continued to pay rent right through the four-month
delay. Construction and design modifications had to continue.
All the projections changed. There was no money coming into
the business and they were unable to continue to provide
their new staff with employment.
The
capital costs that we incurred because of the delays created
a lot of problems. It did hit our bottom line.
On the night before the eventual April launch, Red Cell
employees were busy getting the stores ready for the mornings
anticipated rush. Pires went to bed at 3 am, and started
visiting his stores at 6 am. The employees were there early,
all with little or no sleep, they were running on anticipation,
adrenaline and energy drinks.
At 8 am, the doors to most of the stores opened on time.
There was no electricity at the Ariapita Avenue store until
1 pm. The photocopier at another branch had the wrong type
of plug, they opened at 10 am. The St Helena branch had
no telephone line, so they waited for the Internet service
provider to finish connecting the dish.
Unfortunately
we did have one or two teething problems, says Joe,
grinning. Its hectic.
When things got too hectic on opening day, Red Cell was
able to contact their Digicel account manager.
Joe credits Yvonne Burke, director of retail operations
at Digicel, and her team of Jerome Khan and Rhanie Mohammed
for their role in his new companys early success,
particularly in that first frenzied week.
Its
just a breath of fresh air to have a business partner who
is working with me. As an entrepreneur for the last 12 years
in this business, its been sometimes frustrating.
There were a lot of curiosity-seekers when the doors finally
opened. Many of the news reports that evening suggested
there were more people browsing than buying.
But Joe Pires flexes the figures: Our stores have
been fairly consistent. Our flagship stores have done very,
very well. They have exceeded our monthly sales budget already
in the first four days of business which I am very pleased
about.
Red Cell is banking on its service edge and its marketing
to distinguish it from other Digicel distributors. The design
is an amalgamation gained from visiting stores across the
United States and the United Kingdom.
The look is consistent in every store, modern and geared
towards merchandising. The companys red and white
colouring is juxtaposed in clean lines throughout, on displays,
walls and on uniforms.
Joe believes that while mass marketing, curiosity and displeasure
with the competition will bring customers in the door, it
is their experience in the store that will keep them coming
back.
Digicels slogan is Expect More. Get More.
Red Cell advertises provocatively You Get Even More
in a Red Cell Store.
Digicel
has to seek its interests and I have to seek my Red Cell
interests. I wish Digicel success because if they succeed,
I succeed.
Pires believes that Digicel and its dealers have sold more
phones since the service launched than its rival.
We
are very pleased with our targets from the first month,
we surpassed our objectives. We believe that all the Digicel
dealers surpassed their targets.
And with the introduction of a Digicel small business corporate
plan, group sales are on the rise as Red Cell begins to
expand its focus beyond its individual walk-in customers.
Red Cell however doesnt just compete against TSTTs
bmobile. There are about 200 Digicel-partnered distributor
outlets located throughout T&T.
The inter-distributor dog fight is temporarily
held in the balance by their common drive to get the Digicel
brand established through high, early sales. In every location
Red Cell competes with other Digicel-partnered stores. Pires
is convinced that his calculations are right, and that the
expected foot-traffic will walk into his Red Cell stores.
Three
to six months from now we expect some of our competitors
to close once the hype is done and they have to focus on
the routine month-to-month business states Pires matter-of-factly.
We
believe at that time Red Cell will be in an acquisition
mode. We will be looking for new locations.
For a man who is used to getting things done his way, right
away, Pires demonstrated unprecedented patience during the
interconnection delay. Even while trying to provide Trinidad
with a choice of mobile phone service, he had no choice
but to wait for his Digicel phone to ring.
Now it doesnt stop ringing, and if his projections
are correct, Red Cells mobile phones may be ringing
more than anyone elses.