LUCIO TAN

the success story of Dr. Lucio Tan.

Lucio Tan was born on July 17, 1934 in

China’s Fujian province. His family moved to
Philippines, in Naga, where he was a child.
He worked his way through college studying
Chemistry in Far Eastern University but quit
before graduating, set up a business that
deals with scrap in the late 1950s and and
later on found a job in a tobacco factory
where he was tasked to buy leaf tobacco in
the Ilocos provinces.

Because of this experience, Lucio Tan started

his own cigarette company named Fortune
Tobacco in 1966. It was also during this time when his close friend
Ferdinand Marcos was newly elected as President. The tobacco business
was a success and it expanded introducing a budget brand ‘Hope’ in
1975.
By year 1980, Fortune Tobacco was the Philippines’ largest cigarette
manufacturer.

In 1977, Lucio Tan acquired from the Philippine Government the then
bankrupt bank General Bank and Trust Co. (Genbank) for only P500,000
which was described by many as a sweetheart deal. It was later renamed
to Allied Bank.

In 1982, Lucio Tan established and put up Asia Brewery where he used
to his benefit, the Marcos ruling that lifted the ban on the establishment
of new beer companies. Back then, it was the only brewery allowed to
compete with the market leader San Miguel Corp.

In 1993, Lucio Tan secured control of the country’s airline carrier

Philippine Air Lines (PAL).
While a lot of articles say that Lucio Tan benefited a lot from tax
concessions and privileges that the Marcos Regime gave to him in
exchange for a rumored 60% on all his shareholdings, on December 7,
2007, the Philippine Supreme Court affirmed the decision dismissing the
state’s sequestration of Lucio Tan’s companies. The court’s decision says
that “there can be no question that indeed, petitioner’s orders of
sequestration are void and have no legal effect.”

In 1995, he founded yet another company in the aviation industry. The

Macro Asia Corporation was envisioned to be the leading provider of
aviation and logistics services. This vision has become a reality as Macro
Asia Corporation is now the provider of technical ground handling,
engineering and maintenance services, and catering services to majority
of the international airlines.

In 2000, Tan has become the majority stockholder of Philippine National

Bank. The merger of PNB and Allied Bank is expected to be completed
before the end of this year.

HIS COMPANIES DEAL WITH LIQUOR, TOBACCO, AVIATION, BANKING

AND REAL ESTATE. THSE ARE;

* Asia Brewery, the 2nd largest brewer in the Philippines.

* Tanduay Holdings, one of the world's largest rum makers.
* Fortune Tobacco, the largest tobacco company in the country.
* Philippine Airlines, the Philippines' Number 1 Airline and Aviation
Company and Asia's FIRST Airline
* University of the East one of the most financially stable universities in
the Philippines in terms of assets.
* Philippine National Bank, the 5th largest bank in the country.
* Allied Bank, the Philippines' 8th largest lender (Merged with Philippine
National Bank).
* Eton Properties Philippines, the global real estate brand of the Lucio
Tan Group.

To date, Lucio Tan's Group of Companies provides jobs to 50,000 people.

To these employees, Lucio Tan is simply Kapitan. A nickname that is
very much appropriate to him as he was able to navigate his vast
businesses through rough seas and tough times.

Today, Lucio Tan is still one of the richest person in the Philippines
ranking him as second to Henry Sy last year 2008 with a total asset of
%1.5 Billion. His Lucio Tan Group of Companies now owns several
industries that includes liquor (Tanduay Holdings, Inc. and Asia
Brewery), tobacco (Fortune Tobacco), aviation (Philippine Airlines),
banking (Allied Bank and Philippine National Bank), real estate (Eton
Properties Philippines), and education (University of the East).

“Even the accomplished suffers setbacks sometimes. The more bitter the lessons,
the greater the successes will be.”- Lucio Tan

http://michaelyana.blogspot.com/2011/12/lucio-tan-successful-
story.html
 John

Gokongwei jr.

Not all greats start from small

beginnings. Sometimes, they are born
privileged, later to be taken away from
them, but succeeding once again in the
future. This is John Gokongwei Jr.’s
story.

You may have heard of Universal Robina Corporation, JG Summit

Holdings, Cebu Pacific, and the Robinsons Corporation. These are all
John Gokongwei Jr. ’s fruits of labor which he got from pure
determination to survive.

Gokongwei Jr. was once a scion of a wealthy Filipino-Chinese clan. He

was born with a silver spoon—he was studying in one of Cebu’s premiere
schools (San Carlos University), and their family was known to be one of
the richest in Cebu. Unfortunately, one day, all these things he enjoyed
were taken away from him when his father died. The creditor seized their
home and cars, their business were gone and suddenly everything he
had had disappeared.

They became flat broke. At 15, Gokongwei Jr. had to work to provide for
his family. His mother had to sell her jewelries. His siblings were sent to
China where the cost of living was cheaper. He sold roasted peanuts and
opened up a small stall in the market, where he had to compete with
other vendors to sell his goods. He sold soap, candles, and threads to
earn money. Determined as he was, Gokongwei Jr. knew he had an
advantage as he was younger, therefore he used this as a strength in his
job.
It was in 1943 when Gokongwei Jr. began trading goods from Cebu to Manila.
When the World War II ended, he saw this as an opportunity to trade goods in
the Philippines. He put up Amasia Trading with his brother which helped bring
back his siblings home to help out with the business. He then went on to
pursue other business ventures: from cornstarch manufacturing, to food
production, to purchasing shares in San Miguel Corporation, the then leading
business in the 70s. He had a vision to make every Filipino fly thus the
creation of the low-cost carrier Cebu Pacific, in 2003 he established a mobile
company, in 2004 he introduced C2 beverage, and all that comprise Gokongwei
Jr.’s empire, the JG Summit holdings.

It didn’t always go smoothly—in between these success come failure. He had a

hard time to get a loan, but fortunately one bank trusted him. He started
getting recognized at the business scene but before that he had to fight for a
position. His loss and failures were broadcasted. But still he succeeded—and is
now considered as a key player when it comes to the powerful business sector.

Now, John Gokongwei Jr. is the second richest Filipino in 2016, according to
Forbes Magazine. Aside from being a business magnate, he is also a
philanthropist. And with all the businesses he owns in the country, he provides
thousands of jobs to people. With his story, he hopes to inspire people to have
the determination to bounce back in life without ever quitting.

“You have to love your work. You have to save money instead of spending all of
it. Look for areas you can compete in. Work damn hard. Most importantly, you
have to love it.” – John Gokongwei

“Success is not necessarily about connections, or cutting corners, or chamba - the

three Cs of bad business. Call it trite, but believe me: success can be achieved
through hard work, frugality, integrity, responsiveness to change, and most of
all, boldness to dream.” – John Gokongwei

Source: Millionaire Acts;

michaelyana.blogspot.com
Henry sy sr.
“Success is not just good luck. It is a
combination of hard work, good credit
standing, opportunity, readiness, and
timing. Success will not last if you do not
take care of it.”

Henry Sy, Sr. is the richest man in the

Philippines, according to Forbes
Magazine on their 2013 survey. His
net worth is $9.1 billion in 2012 to
$13.2 billion in 2013, thus making
him the 68th wealthiest person in the
world. Henry Sy, Sr. is known for his legacy in retail merchandising and
establishing all around the country the chain of SM Department Stores,
SM Supermarkets, SM Mall of Asia, SM Megamall, the glamorous SM
Aura Premier and more. But among Filipinos, Henry Sy, Sr. is more than
a figure of prosperity and hard work. He is also a symbol of national
pride and source of inspiration to anyone who wants to be successful in
life.

Shares of his holding firm, SM Investments, is considered the country’s

most valuable company. Henry Sy, Sr. is also the chairman of SM
Foundation, Inc. who dedicates its projects in charitable works in
providing education for underprivileged Filipinos.

It has always fascinated not only Filipinos but also foreign business
people in learning more about Henry Sy, Sr.’s business strategies and his
inspirational life story. Anywhere you go, there is an SM store nearby
with majestic facades of lights, fountains, artistic building design and the
famous “SM” logo. Although his stores are very modern and vibrant,
every Filipino knows that the giant business empire of SM stores has a
humble beginning.

Simplicity and Common Sense

Henry Sy, Sr. was born on 25th of December 1924 at Xiamen, China. He
is a Chinese-Filipino. At age 12, his family settled in the Philippines. At
that young age, he worked in a small retail store (called “sari-sari” store)
owned by his father where they sell anything from food to basic items. He
worked 12 hours each day to help his father. Back then, the store was
located at Echague Street, now named Carlos Palanca Sr. Street in
Quiapo, Manila.

Early on, Henry Sy’s business strategy was nothing fancy but brilliant.
He wanted to find ways to earn more in that setup, thus he came up with
the concept of selling items in small portions. It was a practical and fast
way to sell products. This concept resembles the small packs or products
in sachets we now see in supermarkets or small “sari-sari” stores. Most
of his childhood revolved around selling in his father’s store rather than
enjoying his childhood. Unfortunately, during World War II their store
was destroyed. This event in his early years did not stop him from being
business-minded and optimistic. He got involved in buying and selling
anything of worth in order for his family to survive. Sometimes it is
during difficult times that we shine our best and we learn the true
meaning of perseverance and optimism. Experience is also a great
teacher.

One time, he was unfortunately hit by a shrapnel while selling. It was a

good thing his friend, who was a pushcart vendor, saved him and
brought him to the hospital. Because of this near-death experience, he
valued that friendship. After the war, he made this friend his partner in a
shoe business.

When the war ended (1945), he got involved with selling imported
American shoes from business-minded American GI soldiers. This
inspired him to open a shoe store with his friend. Eventually, he was
managing three shoe stores with his business partner.

Meanwhile, as a student in FEU (Far Eastern University, Manila) and a

family man at the same time in the early ’50s, he studied the market of
his chosen industry. Henry Sy, Sr. wanted to find innovative ways to
improve his trade. Therefore he went to the US at the East Coast and
found ideas and inspiration that he needed in selling shoes and other
leather goods, thus the birth of a store called “Shoe Mart” or “SM”. “Shoe
Mart” which was the first air-conditioned shoe store. This store was
successful and thus more stores were opened.

His problem that time was lack of adequate supply of products to meet
the growing demand of customers. This problem lead him to focus on
selling apparels and other products with the help of his mother.

What is admirable about his approach to business was his common

sense and open-mindedness. He takes time to listen to customers,
suppliers and employees and then he learns from people’s opinions.
Using this gathered information from different people and being
observant of market trends, he was later inspired to start a department
store chain.

The first department store was launched in 1972. At that time, it was
Martial Law in the country and this presented a lot of business obstacles
for him as it was a time of political and social chaos and economic
decline. But obstacles and limitations did not stop Henry Sy, Sr. from
pursuing his passion to expand his business. Despite the situation
during Martial Law period, he continued to open more department stores
in the country. This, however, presented the problem of getting the space
needed for the business.

As contingency plan, he had been considering a long-term goal of

investing in properties for malls. To simplify it, rather than being a
tenant of a space for a shop, there would be less problems if one would
own the space itself where one’s shop is located. Further on, perhaps if
one’s property is big enough, it can expand into offering rent space for
other independent stores. The concept was simple and practical.

In 1983, there were more obstacles like the economic crisis that got
worse after the assassination of Ninoy Aquino. At that year, the first mall
began its construction. It seems like a bad year to start big projects as
many investors and bankers were skeptical to join or finance his
projects. Once more, Henry Sy, Sr.’s optimism and determination
remained his weapon and shield during hard times. In 1985, a new
department store and supermarket were launched. It was on the same
year when his company had to face labor problems and union strikes.
This tested his optimism and determination further. He had many
reasons to give up on his venture but moral support from family, good
employees and customers were there to keep him strong.

Further on, he continued his plans for business expansion with the
construction of SM Sta. Mesa and SM Megamall. The plans were big and
optimism was great but every step was slow and difficult. There were
many factors that brought about construction delays like lack of supply
of cement and the 1989 coup in Makati.

Despite all these opposing factors, SM City Sta. Mesa opened on the 28th
of September 1990. It has 200 shops and restaurants and became a new
social venue at Sta. Mesa, Manila.
SM Megamall, located at the Ortigas Center, opened its main building on
the 28th of June 1991. The Mega Atrium of SM Megamall opened on
28th of October 2008 and the new Carpark C on 11th of October 2011.
SM Megamall is one of the largest SM Supermalls created by SM Prime
Holdings, the largest mall operator in the Philippines owned by Henry Sy,
Sr. SM Megamall is a huge shopping mall originally with two buildings
(Building A and B, but now expanding with Building C and Carpark D).
Land area is around 21 hectares with 750 shops and 250 dining
establishments. It has a maximum capacity of 4 million people.

But going back to Henry Sy, Sr.’s life story, his daughter Teresita Sy-
Coson narrates,

“When the 1997 Asian crisis came, we were planning our mall expansion,
including the Mall of Asia, which was then envisioned to be the biggest
mall in the region.

Because my dad felt the tsunami-like effects of the region wide crisis,
which was unlike any other he had experienced, we had to change plans.
We deferred opening the Mall of Asia, and went on with the opening of
other malls.

We grew in numbers instead of size, serving different smaller markets.

We have also expanded our retail business beyond department stores to
include supermarkets, hardware stores, appliance superstores and other
retail formats.”

Joining the Banking Industry

Henry Sy, Sr. also joined the banking industry. He owns a bank called
“Banco de Oro” which started as a medium-sized bank but very stable.
Being a medium-sized bank with a conservative business principle was
an advantage as it prevented them from being victimised by bad loans
during the economic instability at that time.

Eventually, he and his group decided to be courageous with their

banking strategy. Sometimes taking bold steps and taking risks are
ways for a business to grow, thus a new and improved BDO around year
2000.

“Encouraged by the consolidation program of Central Bank of the

Philippines in making Philippine banks more competitive relative to the
region, Banco De Oro made few acquisitions because of the moratorium
on banking. It acquired the Dao Heng Philippines branch, the First
eBank, the Banco Santander Philippines branch, the United Overseas
Bank branches and most recently – Equitable PCI Bank,” according to
Teresita Sy-Coson.
She further explains her father’s banking principle, “Opportunity is
where you find it, not where it finds you. Crisis and weakness indicate
one can look for opportunities. Transforming problems into opportunities
can bring good returns. Prosperity and growth come only to a business
that systematically exploits its potentials and systematically optimizes its
performances.

Our business – especially that of shopping centres is a long term

business. It takes at least eight years to pay back. We feel that the
country will always be around, and with Filipinos’ love for shopping,
there will always be customers we can sell to.”

Today BDO Unibank, Inc. (Banco de Oro or BDO) is one the largest
banks in the Philippines. This is owned by SM Group of Companies, one
of the country’s largest conglomerates owned by Henry Sy, Sr.
Taking One Step At A Time for Giant Dreams

On the 21st of May 2006, SM Mall of Asia was opened. It is located at the Bay
City, Pasay near SM Central Business Park and the Manila Bay. This is the
second largest mall in the Philippines (SM City North EDSA as the 1st), the 3rd
largest shopping mall in Asia, and considered the 4th largest shopping mall in
the world. Land area is around 42 hectares

On the 17th of May 2013, the newest, the most elegant and the most exciting
shopping center of SM Prime Holdings was opened. The shop is called “SM
Aura Premier” located at Bonifacio Global City, Fort Bonifacio, Taguig City,
along McKinley Parkway and C5 Road. It has a floor area of 249,861 square
meters.

As of today, SM Aura Premier has 388 stores. This mall has a multi-level green
roof (designed for environmental advantages) called the “SkyPark”. Other
features include the fresco bars, restaurants, sculpture and botanical gardens,
a performance hall with 1,100 seats (Samsung Hall) and a 250-seat chapel
named after the newly canonised Filipino saint, St. Pedro Calungsod.

SM Aura got its name from the elements Au (gold) and Ra (radium), related
with good luck and prosperity in Chinese feng shui and numerology. Elemental
gold has an atomic number of 79, while radium’s atomic number is 88.
According to Hans Sy, the numbers 7, 8 and 9 are good luck numbers. Hans
Sy is the second son of Henry Sy, Sr. and First Executive Vice President of SM
Investment Corporation.

I also see that 79 is an odd number, thus representing “movement” and

“progress” in Chinese numerology. The number 88 represents double good luck
since the number 8 represents infinite prosperity in Chinese culture. The
future looks bright for SM Aura based on these numbers.

SM Aura has 1,771 parking slots with additional bicycle paths. The design
team of SM Aura includes the “Arquitectonica” from Miami and “EDGE” from
Sydney.
In A Nutshell

The business empire of SM store chain is more than a venue for fun shopping,
fine dining and social events. Every SM store that we see is a representation of
Filipino business ingenuity, stability, resilience during hard times and
optimism despite the uncertain future. These are things that we can learn from
Henry Sy, Sr.’s

In my opinion, you know that you are in a good place in the Philippines if there
is an SM Department Store or SM Supermarket in that area. Why is it so? Most
people would agree that even on rural and underdeveloped provinces in the
country, once an SM branch is built there, life automatically changes for all, a
change for the better. There are now more than 30 SM branches around the
country.

From his journey during pre-war Manila, then his first shoe store in October
1958, and then the opening of the first SM Department Store in 1972 in
downtown Manila, all the way to last month’s opening of SM Aura Premier, we
can learn so much from Henry Sy, Sr.’s life story and business principles. His
life story of struggles, survival and victory is an inspiration to every Filipino
and even international business people.

Here are more wise quotes about business and common sense from the richest
man in the Philippines.

Henry Sy, Sr.’s List of Awards:

Management Man of the Year” by the Makati Business Club – 1999

Honorary Doctorate in Business Management by De La Salle University in

January 1999

Forbes magazine Heroes of Philanthropy 2009

1st Chinese-Filipino recipient of the PCE Big Brother of Filipino Entrepreneurs

award (2006)

1st Chinese-Filipino recipient of the PRA President’s Award (2005)

““ There is no such thing as overnight success or easy money. If you fail, do not
be discouraged; try again. When you do well, do not change your ways.”-Henry
Sy Sr.

http://www.garfsblog.com/henry-sy-success-story-father-of-
philippine-retail-philippines-richest-man/