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MANILA, Philippines – Tim Kobe may not exactly ring a bell among Filipinos – unless you mention Apple Inc, which has legions of loyalists in the Philippines.
The Eight Inc founder and CEO, who is behind the original design concept for Apple stores, is in the Philippines to help in the “Apple-like” transformation of Ayala-led Globe Telecom Inc’s stores in SM North EDSA in Quezon City and Limketkai Mall in Cagayan de Oro City.
Globe closed down the two flagship stores and is mum about how both branches would look like when they are unveiled in December.
Kobe, one of the brains behind the minimalistic glass cube Apple store in New York City’s 5th Avenue, is necessarily tight-lipped but gives Rappler a very general idea of what the public can expect.
“They won’t look like anyone else’s telco. It’s not going to feel like you’re walking into a telco,” Kobe tells Rappler in an interview on Thursday, November 6.
Eight Inc provides commercial, retail, industrial, and residential design to offices in New York, San Francisco, London, Honolulu, Tokyo, Singapore, Hong Kong, and Beijing.
His firm, founded in 1989, unites the traditional disciplines of strategy, architecture, exhibition, interior design, product, communications, and branding.
Apart from Apple, Kobe and his creative team of 90-plus strategic designers and business creatives have done meaningful design projects for Citibank and Citi Private Bank, Coca-Cola, Coach, Nike, Virgin Atlantic Airways, to cite a few.
Among its clients, Eight Inc has had the closest relationship with Apple since the firm worked with Apple founder Steve Jobs for 12 years, and even designed the homes of some of the the company’s top executives.
‘A meaningful experience’
Stiff competition in the Philippine telecommunications industry have kept top players Globe and Smart perpetually on their toes, constantly upping their game.
When Smart offered free Internet to its subscribers in September, Globe then revived its free Facebook promo. Some of their “fights” end up in courts. (READ: Globe to PLDT: No need to auction Bayantel frequencies)
For the first half of 2014, Globe’s net income almost quadrupled at P6.84 billion ($151.91 million*) from P1.4 billion ($31.09 million) from the same period last year. Revenues from all its business segments – cellular, broadband, and landline – breached P47.5 billion ($1.05 billion) in the same period for this year. It also has growing mobile phone subscriber base of 42.7 million, up 18% from 36.1 million a year ago.
The Manuel V. Pangilinan-led PLDT group still has the largest subscriber base at 68.9 million. However, its first half of 2014 earnings are lower compared to Globe: P20 billion ($444.16 million), only 2% higher than its P19.7 billion ($437.51 million) income in 2013.
Such telecommunications wars are beyond Kobe’s scope of responsibility, as far as his Globe project is concerned. His mission is to create a meaningful experience for both Globe and its customers, which is evident in Kobe’s collaboration with Apple.
In 2001, Jobs recruited Kobe to remodel its stores. Apple was then being dismissed as the company selling unusual computers with built-in monitors and single-button pointing devices, with a dismal 2% share in the market dominated by Windows-run computers like IBM and Hewlett-Packard.
Today, Apple is one of the most valuable brands in the world. Its success was due in part to the company’s focus on building high-end retail stores that let customers experience the Apple brand.
“Look at what separates Apple, Amazon, Google, Facebook – why are these companies worth millions of dollars? When they are not the first to market?” Kobe points out.
Another way of competing, he says, is “to solve a part of the customer’s life,” which applies to telecommunication companies like Globe.
“In this case, it would mean offering what the company’s technology could offer, aside from being a utility company,” Kobe says.
Be ‘wowed’ in December
Kobe’s arrangement with Globe, as with other clients, is not simply to redesign its retail stores but to reimagine a conventional transactional branch – one that caters to customer service and payments – into an engaging site.
In a statement, Globe Retail transformation and management head Joe Caliro said Globe is taking a giant leap with the new retail concept of the company’s two flagship stores.
“Our Generation 3 stores will bring to life our customers’ digital lifestyle and epitomize the aspirations of our customers. Our stores will be a wonderful place where customers can explore and discover exciting finds in the digital space,” Caliro said.
Prior to opening, the Generation 3 stores features themed surprises – Arts, Community, and Technology. Globe collaborated with Filipino artists led by Ross Capili, who is working with the past to future-themed designs, seen on the mounted mural in the Globe stores. The mural will transform every two weeks as the artist adds more strokes on the canvas.
There’s going to be a fair amount of space for storytelling in the Globe stores, Kobe says.
“We’re doing away from transactional to experiential,” he stresses.
The idea of giving more space to customers has been replicated by several brands. Japanese convenience store chain FamilyMart proved the formula to be successful in the Philippines. In only two years, its well-designed stores grew to 60 in Metro Manila.
But is it too early to say that Kobe’s proven formula will translate into success for the Ayala-led telecommunication company?
Kobe responds with a paraphrased Steve Jobs philosophy: “Nothing that’s worth doing does not contain some risk.”
The two Globe Generation 3 stores will be unveiled in December. – Rappler.com
(*$1 = P45.02)
The Apple store interior (topmost, featured photo) from Eight, Inc. website
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