By Sarah Knight
As a leading supplier of professional cinema loudspeakers to theaters across the United States, Klipsch Audio Technologies has also made significant strides south of the border by developing strategic alliances with Cinépolis la Capital del Cine and Cinemex, the two largest cinema operators in Mexico.
By fostering relationships with these leading organizations, Klipsch has become their preferred audio provider and captured new market segments. Because Cinépolis is Latin America's largest cinema operator, and Cinemex is the majority film exhibitor in Mexico City, citizens throughout Latin America are becoming familiar with the Klipsch sound experience.
In addition, Cinépolis recently built a theater in Costa Rica, which marked Klipsch's entry into the Central American cinema market.
"We are very proud of the relationships we have established with both Cinépolis and Cinemex. We look forward to expanding these important partnerships and achieving our goal of becoming the number one audio supplier to all the Americas," said Sheldon Combs, Klipsch's director of sales for Asia and Latin America.
According to Combs, Klipsch secured these business deals after a series of comprehensive shootouts, or extensive product comparisons, conducted independently by Cinépolis and Cinemex. Combs said Klipsch won the shootout because of its high-performance products that reproduce a more genuine, lifelike sound.
"With Klipsch professional cinema speakers, we find the high level of quality and power that is required for our projects," said Erenia Tovar Márquez, projection and sound manager for Cinépolis. "Klipsch's ability to fill our orders in a timely manner is also very important to us."
"After a very competitive performance and pricing comparison with all the loudspeakers available on the market, we determined that Klipsch cinema loudspeakers offer the best audio experience for our customers," said Matthew Heyman, co-founder and former co-director general of Cinemex.
Klipsch's best-of-class reputation has also attracted Caribbean Cinemas, the largest cinema operator in the Caribbean. Combs said this newfound relationship has resulted in Klipsch becoming the preferred audio provider of yet another leading cinema operator.
"Because of our superior performance across the board, our engineering prowess and our high-performance brand recognition, Klipsch has become a dominant force in the professional cinema audio market in the U.S. and Mexico, and we're making in-roads to the markets in Europe and Asia," said Lance Jones, senior vice president of corporate development for Klipsch.
When first starting out, it appears Cinépolis and Cinemex used pure entrepreneurial ambition as part of their formulas for success. From there, they used innovative approaches to get where they are today.
For Cinépolis, it all started in Morelia, Michoacan more than 50 years ago when company founder, Enrique Ramirez Miguel built his first movie theater, Cine Morelos. This bold move kick-started a chain of events that would result in Cinépolis becoming the 12th largest cinema operator in the world by year-end 2002 with 135 cinemas and 915 screens.
Cinépolis was the first company in Latin America to introduce the stadium theater concept and considers their theaters as modern, spacious, attractive and clean with up-to-date equipment and a colorful barrage of refreshment concepts. The company also realizes the value of customer service and has invested in its people and, as a result, is reaping the rewards of being a customer-focused company.
While opening its first theater in August of 1995, Cinemex has not been around as long as Cinépolis but definitely has a unique story to tell. It all began in 1993 when three Harvard School of Business students conceived Cinemex as a thesis for their masters program. They determined that Mexico City's metropolitan area was underserved by existing theater circuits and decided to develop a series of theater complexes. The students raised $21.5 million dollars in financing from investors including J.P. Morgan and JMB Realty for what would become a very successful cinema operation with 371 screens to date.
Since opening its doors, Cinemex has offered digital sound in all its theaters and was the first to introduce a computerized system for ticket purchases and reservations via telephone and the Internet. Cinemex believes their success has been built on securing the best locations, building beautiful theaters and equipping them with advanced technology, while offering great customer service.
The final chapter of the Harvard graduates' success story with Cinemex came to a close in June of 2002 when they sold the company to Canadian Holding Company Onex and Oaktree Capital Management of the United States. It capped one of the theater industry's most impressive accomplishments in modern times.
Klipsch also carries its own ambitious success story. From humble beginnings in a tin shed in Hope, Arkansas, Klipsch has become one of the leading global manufacturers of premium audio products. As the company continues to grow and expand into markets outside of the United States, Klipsch plans to show international audiences the true meaning of high-performance audio.