Professional Documents
Culture Documents
21 November 2007
You may wonder how one is connected to the other, but I promise
that, as there is truth in advertising, the connection will come.
I felt angry at the world for taking away my father, and for taking
away all that I enjoyed before. When the free movies disappeared, I
also lost half my friends. On the day I had to walk two miles to school
for the very first time, I cried to my mother, a widow at 32. But she
said: "You should feel lucky. Some people have no shoes to walk to
school. What can you do? Your father died with 10 centavos in his
pocket."
I chose one among several palengkes a few miles outside the city
because there were fewer goods available for the people there. I
woke up at five o'clock every morning for the long bicycle ride to the
palengke with my basket of goods.
There, I set up a table about three feet by two feet in size. I laid out
my goods, soap, candles, and thread, and kept selling until everything
was bought. Why these goods? Because these were hard times and
this was a poor village, so people wanted and needed the basics :
soap to keep them clean, candles to light the night, and thread to sew
their clothes.
But being young had its advantages. I did not tire as easily, and I
moved more quickly. I was also more aggressive. After each day, I
would make about 20 pesos in profit! There was enough to feed my
siblings and still enough to pour back into the business. The pesos I
made in the palengke were the pesos that went into building the
business I have today.
After this experience, I told myself, "If I can compete with people so
much older than me, if I can support my whole family at 15, I can do
anything!"
The important thing to know is that life will always deal us a few bad
cards. But we have to play those cards the best we can. And WE can
play to win!
This was one lesson I picked up when I was a teenager. It has been
my guiding principle ever since. And I have had 66 years to practice
self-determination. When I wanted something, the best person to
depend on was myself.
Then, when WWII ended, I saw the opportunity for trading goods in
post-war Philippines. I was 20 years old. With my brother Henry, I put
up Amasia Trading which imported onions, flour, used clothing, old
newspapers and magazines, and fruits from the United States. In
1948, my mother and I got my siblings back from China. I also
converted a two-story building in Cebu to serve as our home, office,
and warehouse all at the same time. The whole family began helping
out with the business.
Upon launching our first product, Panda corn starch, a price war
ensued. After the smoke cleared, Universal Corn Products was still left
standing. It is the foundation upon which JG Summit Holdings now
stands.
When dad died at age 34, he did not leave a succession plan. From
that, I learned that one must teach people to take over a business at
any time. The values of hard work that I learned from my father, I
taught to my children. They started doing jobs here and there even
when they were still in high school. Six years ago, I announced my
retirement and handed the reins to my youngest brother James and
only son Lance. But my children tease me because I still go to the
office every day and make myself useful. I just hired my first
Executive Assistant and moved into a bigger and nicer office.
In the end, I did not get the board seat because of the Supreme Court
Ruling. But I was able to prove to others and to myself, that I was
willing to put up a fight. I succeeded because I overcame my fear, and
tried. I believe this battle helped define who I am today. In a twist to
this story, I was invited to sit on the board of Anscor and San Miguel
Hong Kong 5 years later. Lose some, win some.
Let me tell you about the three most recent challenges. In all three,
conventional wisdom bet against us. See, we set up businesses
against market Goliaths in very high-capital industries: airline,
telecoms, and beverage.
We also have the youngest fleet in the region after acquiring new
Airbus 319s and 320s. In January, new ATR planes will arrive. These
are smaller planes that can land on smaller air strips like those in
Palawan and Caticlan. Now you don't have to take a two-hour ride by
mini-bus to get to the beach.
Largely because of Cebu Pacific, the average Filipino can now afford
to fly. In 2005, 1 out of 12 Filipinos flew within a year.
But being a late player had its advantages. We could now build our
platform from a broader perspective. We worked with more advanced
technologies and intelligent systems not available ten years ago. We
chose our suppliers based on the most cost-efficient hardware and
software. Being a Johnny-come- lately allowed us to create and launch
more innovative products, more quickly.
Once again, the paradigm shifts - this time in the telecom industry.
Sun's 24/7 Call and Text unlimited changed the landscape of mobile-
phone usage.
Today, we have over 4 million subscribers and 2000 cell sites around
the archipelago. In a country where 97% of the market is pre-paid, we
believe we have hit on the right strategy.
In the end, it is all about making life better for the consumer by giving
them choices.
Challenge No. 3: In 2004, we launched C2, the green tea drink that
would change the face of the local beverage industry -- then, a
playground of cola companies. Iced tea was just a sugary brown drink
served bottomless in restaurants. For many years, hardly was there
any significant product innovation in the beverage business.
Admittedly, we had little experience in this area. Universal Robina
Corporation is the leader in snack foods but our only background in
beverage was instant coffee. Moreover, we would be entering the
playground of huge multinationals. We decided to play anyway.
It all began when I was in China in 2003 and noticed the immense
popularity of bottled iced tea. I thought that this product would have
huge potential here. We knew that the Philippines was not a
traditional tea-drinking country since more familiar to consumers were
colas in returnable glass bottles. But precisely, this made the market
ready for a different kind of beverage. One that refreshes yet gives the
health benefits of green tea. We positioned it as a "spa" in a bottle. A
drink that cools and cleans, thus, C2 was born.
With Cebu Pacific, Sun Cellular, and C2, the JG Summit team took
control of its destiny. And we did so in industries where old giants had
set the rules of the game. It's not that we did not fear the giants. We
knew we could have been crushed at the word go. So we just made
sure we came prepared with great products and great strategies. We
ended up changing the rules of the game instead.
There goes the principle of self-determination, again. I tell you, it
works for individuals as it does for companies. And as I firmly believe,
it works for nations.
I have always wondered, like many of us, why we Filipinos have not
lived up to our potential. We have proven we can. Manny Pacquiao and
Efren Bata Reyes in sports. Lea Salonga and the UP Madrigal Singers
in performing arts. Monique Lhuillier and Rafe Totenco in fashion. And
these are just the names made famous by the media. There are many
more who may not be celebrities but who have gained respect on the
world stage.
Then, we are able to take part in what's really important - giving our
people a big opportunity to raise their standards of living, giving them
a real chance to improve their lives.
In the last 54 years, Korea worked hard to rebuild itself after a world
war and a civil war destroyed it. From an agricultural economy in
1945, it shifted to light industry, consumer products, and heavy
industry in the '80s. At the turn of the 21st century, the Korean
government focused on making Korea the world's leading IT nation.
It did this by grabbing market share in key sectors like
semiconductors, robotics, and biotechnology.
Today, one remarkable Korean brand has made it to the list of Top
100 Global Brands: Samsung. Less then a decade ago, Samsung
meant nothing to consumers. By focusing on quality, design, and
innovation, Samsung improved its products and its image. Today, it
has surpassed the Japanese brand Sony. Now another Korean brand,
LG Collins, is following in the footsteps of Samsung. It has also broken
into the Top 100 Global Brands list.
What about China? Who would have thought that only 30 years after
opening itself up to a market economy, China would become the
world's fourth largest economy? Goods made in China are still
thought of as cheap. Yet many brands around the world outsource
their manufacturing to this country. China's own brands, like Lenovo,
Haier, Chery QQ, and Huawei?are fast gaining ground as well. I have
no doubt they will be the next big electronics, technology and car
brands in the world.
Lee Kwan Yu's book "From Third World to First" captures Singapore's
aspiration to join the First World. According to the book, Singapore
was a trading post that the British developed as a nodal point in its
maritime empire. The racial riots there made its officials determined to
build a "multiracial society that would give equality to all citizens,
regardless of race, language or religion."
Goldilocks has had much success in the Unites States and Canada,
where half of its customers are non-Filipinos. Coffee-chain Figaro may
be a small player in the coffee world today, but it is making the leap to
the big time. Two Filipinas, Bea Valdez and Tina Ocampo, are now
selling their Philippine-made jewelry and bags all over the world.
Their labels are now at Barney's and Bergdorf's in the U.S. and in
many other high-end shops in Asia, Europe, and the Middle East .
When we started our own foray outside the Philippines 30 years ago, it
wasn't a walk in the park. We set up a small factory in Hong Kong to
manufacture Jack and Jill potato chips there. Today, we are all over
Asia. We have the number-one-potato- chips brand in Malaysia and
Singapore . We are the leading biscuit manufacturer in Thailand, and a
significant player in the candy market in Indonesia. Our Aces cereal
brand is a market leader in many parts of China. C2 is now doing very
well in Vietnam, selling over 3 million bottles a month there, after only
6 months in the market. Soon, we will launch C2 in other South East
Asian markets.
I am 81 today. But I do not forget the little boy that I was in the
palengke in Cebu . I still believe in family. I still want to make good. I
still don't mind going up against those older and better than me. I still
believe hard work will not fail me. And I still believe in people willing
to think the same way.
Through the years, the market place has expanded: between cities,
between countries, between continents. I want to urge you all here to
think bigger. Why serve 86 million when you can sell to four billion
Asians? And that's just to start you off. Because there is still the world
beyond Asia. When you go back to your offices, think of ways to sell
and market your products and services to the world. Create world-
class brands.
You can if you really tried. I did. As a boy, I sold peanuts from my
backyard. Today, I sell snacks to the world.