I'm Sad! Worse, I'm Depressed!
The one thing that I am so looking forward to this year did not happen or materialize!
It's just sad.... and please don't ask me about it. I mean it!
Thursday, January 31, 2008
Thursday, January 24, 2008
On Running...
Tet and I agreed last year that we'll go on daily runs around our condo starting January. This was supposed to be our exercise to keep fit and lose the excess weight. It is also supposed to be my practice runs for the 10K races that I would participate in throughout the year and also for my planned 42K before the year ends. I am also encouraging Tet to participate in official races once she gets used to running. But January is almost over and we haven't gone on a single run, let alone try on our rubber shoes. =(
We have come up with several reasons or excuses for not being able to start running:
1. We can't run early in the morning because there has to be someone to watch over Trisha while she's still sleeping and our maid is not available to do that because she does the laundry in the morning.
2. We can't run in the afternoon either because we usually arrive home past 6pm already and the maid still needs to cook which means we'll need to look after Trisha and it is also our quality time with Trisha since she sleeps early.
3. During weekends, it's our family bonding time so we go out and we're usualy tired to do anything after.
I know these reasons/excuses may be lame but they are valid. I also know that if we really wanted to run, we'd find a way to make it happen. Believe me, I want to! we want to! It'll happen one of these days. hehe..
We have come up with several reasons or excuses for not being able to start running:
1. We can't run early in the morning because there has to be someone to watch over Trisha while she's still sleeping and our maid is not available to do that because she does the laundry in the morning.
2. We can't run in the afternoon either because we usually arrive home past 6pm already and the maid still needs to cook which means we'll need to look after Trisha and it is also our quality time with Trisha since she sleeps early.
3. During weekends, it's our family bonding time so we go out and we're usualy tired to do anything after.
I know these reasons/excuses may be lame but they are valid. I also know that if we really wanted to run, we'd find a way to make it happen. Believe me, I want to! we want to! It'll happen one of these days. hehe..
Monday, January 21, 2008
Tips on Gasoline Usage
Since I am on a roll in posting forwarded email messages, I might as well blog about useful stuff. With the rising fuel prices, here are some tips that I have received and read from the Internet on how to save precious gas. It doesn't hurt to follow them and some if not all of it makes sense if you think about it.
- Do not race your engine once started. Wait until the engine has warned up. Warming up the engine by driving gives you better gasoline economy.
- Avoid jack-rabbit starts, take-off and sudden stops. Gradual acceleration saves gas and car wear and tear.
- Keep proper air pressure in tires. Incorrect tire pressure reduces gasoline mileage, wears out tires faster and makes vehicle handling difficult.
- Shift to high gear as soon as you can and stay there as long as you can. Low-gear speed consumes much more fuel than high gear speed.
- Preferably use smaller cars. Smaller engines usually give better economy.
- Plan your trips. Avoid congested routes and cover as many errands as possible in a single trip.
- Avoid parking in the sun. Gas evaporates rapidly when exposed to hot weather.
- Use car pools and other public transport vehicles.
- Eliminate unneeded cargoes and fuel consuming loads.
- Do not fill your gas tank to the brim. Allow for expansion to avoid wastage.
- Only buy or fill up your car or truck in the early morning when the ground temperature is still cold . Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role. A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.
- When you're filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3) stages: low, middle, and high. In slow mode you should be pumping on low speed, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.
- One of the most important tips is to fill up when your gas tank is HALF FULL or HALF EMPTY . The reason for this is, the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.
- Another reminder. If there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up--most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.
I am currently trying several gasolines to see which ones give better fuel economy. So far I have tried Petron XCS and Blaze. I am now trying Shell V-power. A colleague informed me that among all the gasolines in the market, Shell V-power gives the best fuel economy. He mentioned that it actually adds around 2 extra kilometers for every liter of gas. I am trying to find out if it's true. Will tell you about it soon.
Another good read..
I have been receiving a lot of good reads today. I just posted one and now here's another. It was sent by tet. It's from an Ad Congress Speech by John Gokongwei Jr. last November 21, 2007.
I'm sharing this because I know reading this is not going to be a waste of time. So go ahead, read on..
"Before I begin, I want to say please bear with me, an 81-year-old man who just flew in from San Francisco 36 hours ago and is still suffering from jet lag. However, I hope I will be able to say what you want to hear.
Ladies and gentlemen, good evening. Thank you very much for having me here tonight to open the Ad Congress. I know how important this event is for our marketing and advertising colleagues. My people get very excited and go into a panic, every other year, at this time.
I would like to talk about my life, entrepreneurship, and globalization. I would like to talk about how we can become a great nation.
You may wonder how one is connected to the other, but I promise that, as there is truth in advertising, the connection will come.
Let me begin with a story I have told many times. My own.
I was born to a rich Chinese-Filipino family. I spent my childhood in Cebu where my father owned a chain of movie houses, including the first air-conditioned one outside Manila . I was the eldest of six children and lived in a big house in Cebu 's Forbes Park .
A chauffeur drove me to school everyday as I went to San Carlos University , then and still one of the country's top schools. I topped my classes and had many friends. I would bring them to watch movies for free at my father's movie houses.
When I was 13, my father died suddenly of complications due to typhoid. Everything I enjoyed vanished instantly. My father's empire was built on credit. When he died, we lost everything-our big house, our cars, our business-to the banks.
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."
So, what can I do? I worked.
My mother sent my siblings to China where living standards were lower. She and I stayed in Cebu to work, and we sent them money regularly. My mother sold her jewelry. When that ran out, we sold roasted peanuts in the backyard of our much-smaller home. When that wasn't enough, I opened a small stall in a palengke. 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.
I was surrounded by other vendors, all of them much older. Many of them could be my grandparents. And they knew the ways of the palengke far more than a boy of 15, especially one who had never worked before.
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!"
Looking back, I wonder, what would have happened if my father had not left my family with nothing? Would I have become the man I am? Who knows?
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.
And so I continued to work. In 1943, I expanded and began trading goods between Cebu and Manila . From Cebu , I would transport tires on a small boat called a batel. After traveling for five days to Lucena, I would load them into a truck for the six- hour trip to Manila . I would end up sitting on top of my goods so they would not be stolen! In Manila , I would then purchase other goods from the earnings I made from the tires, to sell in Cebu.
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.
In 1957, at age 31, I spotted an opportunity in corn-starch manufacturing. But I was going to compete with Ludo and Luym, the richest group in Cebu and the biggest cornstarch manufacturers. I borrowed money to finance the project. The first bank I approached made me wait for two hours, only to refuse my loan. The second one, China Bank, approved a P500,000-peso clean loan for me. Years later, the banker who extended that loan, Dr. Albino Sycip said that he saw something special in me. Today, I still wonder what that was, but I still thank Dr. Sycip to this day.
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.
Interestingly, the price war also forced the closure of a third cornstarch company, and one of their chemists was Lucio Tan, who always kids me that I caused him to lose his job. I always reply that if it were not for me, he will not be one of the richest men in the Philippines today.
When my business grew, and it was time for me to bring in more people- my family, the professionals, the consultants, more employees- I knew that I had to be there to teach them what I knew. 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.
Building a business to the size of JG Summit was not easy. Many challenges were thrown my way. I could have walked away from them, keeping the business small, but safe. Instead, I chose to fight. But this did not mean I won each time.
By 1976, at age 50, we had built significant businesses in food products anchored by a branded coffee called Blend 45, and agro- industrial products under the Robina Farms brand. That year, I faced one of my biggest challenges, and lost. And my loss was highly publicized, too. But I still believe that this was one of my defining moments.
In that decade, not many business opportunities were available due to the political and economic environment. Many Filipinos were already sending their money out of the country. As a Filipino, I felt that our money must be invested here. I decided to purchase shares in San Miguel, then one of the Philippines ' biggest corporations. By 1976, I had acquired enough shares to sit on its board.
The media called me an upstart. "Who is Gokongwei and why is he doing all those terrible things to San Miguel?" ran one headline of the day. In another article, I was described as a pygmy going up against the powers-that- be. The San Miguel board of directors itself even aid for an ad in all the country's top newspapers telling the public why I should not be on the board. On the day of reckoning, shareholders quickly filled up the auditorium to witness the battle. My brother James and I had prepared for many hours for this debate. We were nervous and excited at the same time.
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.
Since then, I've become known as a serious player in the business world, but the challenges haven't stopped coming.
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.
Challenge No. 1: In 1996, we decided to start an airline. At the time, the dominant airline in the country was PAL, and if you wanted to travel cheaply, you did not fly. You went by sea or by land.
However, my son Lance and I had a vision for Cebu Pacific: We wanted every Filipino to fly.
Inspired by the low-cost carrier models in the United States , we believed that an airline based on the no-frills concept would work here. No hot meals. No newspaper. Mono-class seating. Operating with a single aircraft type. Faster turn around time. It all worked, thus enabling Cebu Pacific to pass on savings to the consumer.
How did we do this? By sticking to our philosophy of "low cost, great value."
And we stick to that philosophy to this day. Cebu Pacific offers incentives. Customers can avail themselves of a tiered pricing scheme, with promotional seats for as low a P1. The earlier you book, the cheaper your ticket.
Cebu Pacific also made it convenient for passengers by making online booking available. This year, 1.25 million flights will be booked through our website. This reduced our distribution costs dramatically.
Low cost. Great value.
When we started 11 years ago, Cebu Pacific flew only 360,000 passengers, with 24 daily flights to 3 destinations. This year, we expect to fly more than five million passengers, with over 120 daily flights to 20 local destinations and 12 Asian cities. Today, we are the largest in terms of domestic flights, routes and destinations.
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. In 2012, by continuing to offer low fares, we hope to reduce that ratio to 1 out of 6. We want to see more and more Filipinos see their country and the world!
Challenge No. 2: In 2003, we established Digitel Mobile Philippines, Inc. and developed a brand for the mobile phone business called Sun Cellular. Prior to the launch of the brand, we were actually involved in a transaction to purchase PLDT shares of the majority shareholder.
The question in everyone's mind was how we could measure up to the two telecom giants. They were entrenched and we were late by eight years! PLDT held the landline monopoly for quite a while, and was first in the mobile phone industry. Globe was a younger company, but it launched digital mobile technology here.
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.
All these provided us with the opportunity to give the consumers a choice that would rock their world. The concept was simple. We would offer Filipinos to call and text as much as they want for a fixed monthly fee. For P250 a month, they could get in touch with anyone within the Sun network at any time. This means great savings of as much as 2/3 of their regular phone bill! Suddenly, we gained traction. Within one year of its introduction, Sun hit one million customers.
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.
Sun Cellular is a Johnny-come- lately, but it's doing all right. It is a third player, but a significant one, in an industry where Cassandras believed a third player would perish. And as we have done in the realm of air travel, so have we done in the telecom world: We have changed the marketplace.
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 se rv ed 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.
C2 immediately caught on with consumers. When we launched C2 in 2004, we sold 100,000 bottles in the first month. Three years later, Filipinos drink around 30 million bottles of C2 per month. Indeed, C2 is in a good place.
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.
But to be a truly great nation, we must also excel as entrepreneurs before the world. We must create Filipino brands for the global market place.
If we want to be philosophical, we can say that, with a world-class brand, we create pride for our nation. If we want to be practical, we can say that, with brands that succeed in the world, we create more jobs for our people, right here.
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.
We can do it. Our neighbors have done it. So can we. 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."
When Singapore was asked to leave the Malaysian Federation of States in 1965, Lee Kwan Yew developed strategies that he executed with single-mindedness despite their being unpopular. He and his cabinet started to build a nation by establishing the basics: building infrastructure, establishing an army, WEEDING OUT CORRUPTION,providin g mass housing, building a financial center. Forty short years after, Singapore has been transformed into the richest South East Asian country today, with a per capita income of US$32,000.
These days, Singapore is transforming itself once more. This time it wants to be the creative hub in Asia , maybe even the world. More and more, it is attracting the best minds from all over the world in filmmaking, biotechnology, media, and finance. Meantime, Singaporeans have also created world-class brands: Banyan Tree in the hospitality industry, Singapore Airlines in the Airline industry and Singapore Telecoms in the telco industry.
I often wonder: Why can't the Philippines , or a Filipino, do this?
Fifty years after independence, we have yet to create a truly global brand. We cannot say the Philippines is too small because it has 86 million people. Switzerland , with 9 million people, created Nestle. Sweden , also with 9 million people, created Ericsson. Finland , even smaller with five million people, created Nokia. All three are major global brands, among others.
Yes, our country is well-known for its labor, as we continue to export people around the world. And after India , we are grabbing a bigger chunk of the pie in the call-center and business-process- outsourcing industries. But by and large, the Philippines has no big industrial base, and Filipinos do not create world-class products.
We should not be afraid to try-even if we are laughed at. Japan , laughed at for its cars, produced Toyota . Korea , for its electronics, produced Samsung. Meanwhile, the Philippines ' biggest companies 50 years ago-majority of which are multinational corporations such as Coca- Cola, Procter and Gamble, and Unilever Philippines , for example-are still the biggest companies today. There are very few big, local challengers.
But already, hats off to Filipino entrepreneurs making strides to globalize their brands.
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 se rv ices 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.
I want to see other Filipinos do the same.
Thank you and good evening once again."
After reading that, are you not inspired to create your own brand and sell it to four billion Asians and probably the rest of the world?
I'm sharing this because I know reading this is not going to be a waste of time. So go ahead, read on..
"Before I begin, I want to say please bear with me, an 81-year-old man who just flew in from San Francisco 36 hours ago and is still suffering from jet lag. However, I hope I will be able to say what you want to hear.
Ladies and gentlemen, good evening. Thank you very much for having me here tonight to open the Ad Congress. I know how important this event is for our marketing and advertising colleagues. My people get very excited and go into a panic, every other year, at this time.
I would like to talk about my life, entrepreneurship, and globalization. I would like to talk about how we can become a great nation.
You may wonder how one is connected to the other, but I promise that, as there is truth in advertising, the connection will come.
Let me begin with a story I have told many times. My own.
I was born to a rich Chinese-Filipino family. I spent my childhood in Cebu where my father owned a chain of movie houses, including the first air-conditioned one outside Manila . I was the eldest of six children and lived in a big house in Cebu 's Forbes Park .
A chauffeur drove me to school everyday as I went to San Carlos University , then and still one of the country's top schools. I topped my classes and had many friends. I would bring them to watch movies for free at my father's movie houses.
When I was 13, my father died suddenly of complications due to typhoid. Everything I enjoyed vanished instantly. My father's empire was built on credit. When he died, we lost everything-our big house, our cars, our business-to the banks.
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."
So, what can I do? I worked.
My mother sent my siblings to China where living standards were lower. She and I stayed in Cebu to work, and we sent them money regularly. My mother sold her jewelry. When that ran out, we sold roasted peanuts in the backyard of our much-smaller home. When that wasn't enough, I opened a small stall in a palengke. 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.
I was surrounded by other vendors, all of them much older. Many of them could be my grandparents. And they knew the ways of the palengke far more than a boy of 15, especially one who had never worked before.
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!"
Looking back, I wonder, what would have happened if my father had not left my family with nothing? Would I have become the man I am? Who knows?
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.
And so I continued to work. In 1943, I expanded and began trading goods between Cebu and Manila . From Cebu , I would transport tires on a small boat called a batel. After traveling for five days to Lucena, I would load them into a truck for the six- hour trip to Manila . I would end up sitting on top of my goods so they would not be stolen! In Manila , I would then purchase other goods from the earnings I made from the tires, to sell in Cebu.
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.
In 1957, at age 31, I spotted an opportunity in corn-starch manufacturing. But I was going to compete with Ludo and Luym, the richest group in Cebu and the biggest cornstarch manufacturers. I borrowed money to finance the project. The first bank I approached made me wait for two hours, only to refuse my loan. The second one, China Bank, approved a P500,000-peso clean loan for me. Years later, the banker who extended that loan, Dr. Albino Sycip said that he saw something special in me. Today, I still wonder what that was, but I still thank Dr. Sycip to this day.
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.
Interestingly, the price war also forced the closure of a third cornstarch company, and one of their chemists was Lucio Tan, who always kids me that I caused him to lose his job. I always reply that if it were not for me, he will not be one of the richest men in the Philippines today.
When my business grew, and it was time for me to bring in more people- my family, the professionals, the consultants, more employees- I knew that I had to be there to teach them what I knew. 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.
Building a business to the size of JG Summit was not easy. Many challenges were thrown my way. I could have walked away from them, keeping the business small, but safe. Instead, I chose to fight. But this did not mean I won each time.
By 1976, at age 50, we had built significant businesses in food products anchored by a branded coffee called Blend 45, and agro- industrial products under the Robina Farms brand. That year, I faced one of my biggest challenges, and lost. And my loss was highly publicized, too. But I still believe that this was one of my defining moments.
In that decade, not many business opportunities were available due to the political and economic environment. Many Filipinos were already sending their money out of the country. As a Filipino, I felt that our money must be invested here. I decided to purchase shares in San Miguel, then one of the Philippines ' biggest corporations. By 1976, I had acquired enough shares to sit on its board.
The media called me an upstart. "Who is Gokongwei and why is he doing all those terrible things to San Miguel?" ran one headline of the day. In another article, I was described as a pygmy going up against the powers-that- be. The San Miguel board of directors itself even aid for an ad in all the country's top newspapers telling the public why I should not be on the board. On the day of reckoning, shareholders quickly filled up the auditorium to witness the battle. My brother James and I had prepared for many hours for this debate. We were nervous and excited at the same time.
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.
Since then, I've become known as a serious player in the business world, but the challenges haven't stopped coming.
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.
Challenge No. 1: In 1996, we decided to start an airline. At the time, the dominant airline in the country was PAL, and if you wanted to travel cheaply, you did not fly. You went by sea or by land.
However, my son Lance and I had a vision for Cebu Pacific: We wanted every Filipino to fly.
Inspired by the low-cost carrier models in the United States , we believed that an airline based on the no-frills concept would work here. No hot meals. No newspaper. Mono-class seating. Operating with a single aircraft type. Faster turn around time. It all worked, thus enabling Cebu Pacific to pass on savings to the consumer.
How did we do this? By sticking to our philosophy of "low cost, great value."
And we stick to that philosophy to this day. Cebu Pacific offers incentives. Customers can avail themselves of a tiered pricing scheme, with promotional seats for as low a P1. The earlier you book, the cheaper your ticket.
Cebu Pacific also made it convenient for passengers by making online booking available. This year, 1.25 million flights will be booked through our website. This reduced our distribution costs dramatically.
Low cost. Great value.
When we started 11 years ago, Cebu Pacific flew only 360,000 passengers, with 24 daily flights to 3 destinations. This year, we expect to fly more than five million passengers, with over 120 daily flights to 20 local destinations and 12 Asian cities. Today, we are the largest in terms of domestic flights, routes and destinations.
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. In 2012, by continuing to offer low fares, we hope to reduce that ratio to 1 out of 6. We want to see more and more Filipinos see their country and the world!
Challenge No. 2: In 2003, we established Digitel Mobile Philippines, Inc. and developed a brand for the mobile phone business called Sun Cellular. Prior to the launch of the brand, we were actually involved in a transaction to purchase PLDT shares of the majority shareholder.
The question in everyone's mind was how we could measure up to the two telecom giants. They were entrenched and we were late by eight years! PLDT held the landline monopoly for quite a while, and was first in the mobile phone industry. Globe was a younger company, but it launched digital mobile technology here.
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.
All these provided us with the opportunity to give the consumers a choice that would rock their world. The concept was simple. We would offer Filipinos to call and text as much as they want for a fixed monthly fee. For P250 a month, they could get in touch with anyone within the Sun network at any time. This means great savings of as much as 2/3 of their regular phone bill! Suddenly, we gained traction. Within one year of its introduction, Sun hit one million customers.
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.
Sun Cellular is a Johnny-come- lately, but it's doing all right. It is a third player, but a significant one, in an industry where Cassandras believed a third player would perish. And as we have done in the realm of air travel, so have we done in the telecom world: We have changed the marketplace.
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 se rv ed 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.
C2 immediately caught on with consumers. When we launched C2 in 2004, we sold 100,000 bottles in the first month. Three years later, Filipinos drink around 30 million bottles of C2 per month. Indeed, C2 is in a good place.
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.
But to be a truly great nation, we must also excel as entrepreneurs before the world. We must create Filipino brands for the global market place.
If we want to be philosophical, we can say that, with a world-class brand, we create pride for our nation. If we want to be practical, we can say that, with brands that succeed in the world, we create more jobs for our people, right here.
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.
We can do it. Our neighbors have done it. So can we. 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."
When Singapore was asked to leave the Malaysian Federation of States in 1965, Lee Kwan Yew developed strategies that he executed with single-mindedness despite their being unpopular. He and his cabinet started to build a nation by establishing the basics: building infrastructure, establishing an army, WEEDING OUT CORRUPTION,providin g mass housing, building a financial center. Forty short years after, Singapore has been transformed into the richest South East Asian country today, with a per capita income of US$32,000.
These days, Singapore is transforming itself once more. This time it wants to be the creative hub in Asia , maybe even the world. More and more, it is attracting the best minds from all over the world in filmmaking, biotechnology, media, and finance. Meantime, Singaporeans have also created world-class brands: Banyan Tree in the hospitality industry, Singapore Airlines in the Airline industry and Singapore Telecoms in the telco industry.
I often wonder: Why can't the Philippines , or a Filipino, do this?
Fifty years after independence, we have yet to create a truly global brand. We cannot say the Philippines is too small because it has 86 million people. Switzerland , with 9 million people, created Nestle. Sweden , also with 9 million people, created Ericsson. Finland , even smaller with five million people, created Nokia. All three are major global brands, among others.
Yes, our country is well-known for its labor, as we continue to export people around the world. And after India , we are grabbing a bigger chunk of the pie in the call-center and business-process- outsourcing industries. But by and large, the Philippines has no big industrial base, and Filipinos do not create world-class products.
We should not be afraid to try-even if we are laughed at. Japan , laughed at for its cars, produced Toyota . Korea , for its electronics, produced Samsung. Meanwhile, the Philippines ' biggest companies 50 years ago-majority of which are multinational corporations such as Coca- Cola, Procter and Gamble, and Unilever Philippines , for example-are still the biggest companies today. There are very few big, local challengers.
But already, hats off to Filipino entrepreneurs making strides to globalize their brands.
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 se rv ices 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.
I want to see other Filipinos do the same.
Thank you and good evening once again."
After reading that, are you not inspired to create your own brand and sell it to four billion Asians and probably the rest of the world?
Get A Life!
I haven't blogged in 20 days and I want to share with you this great speech I read today. It was forwarded by a colleague.
This was a speech made by Pulitzer Prize-winning author, Anna Quindlen at the graduation ceremony of an American university where she was awarded an Honorary PhD.
"I'm a novelist. My work is human nature. Real life is all I know. Don't ever confuse the two, your life and your work. You will walk out of here this afternoon with only one thing that no one else has. There will be hundreds of people out there with your same degree: there will be thousands of people doing what you want to do for a living. But you will be the only person alive who has sole custody of your life. Your particular life. Your entire life. Not just your life at a desk, or your life on a bus, or in a car, or at the computer. Not just the life of your mind, but the life of your heart. Not just your bank accounts but also your soul. People don't talk about the soul very much anymore. It's so much easier to write a resume than to craft a spirit. But a resume is cold comfort on a winter's night, or when you're sad, or broke, or lonely, or when you've received your test results and they're not so good. Here is my resume: I am a good mother to three children. I have tried never to let my work stand in the way of being a good parent. I no longer consider myself the centre of the universe. I show up. I listen. I try to laugh. I am a good friend to my husband. I have tried to make marriage vows mean what they say. I am a good friend to my friends and they to me. Without them, there would be nothing to say to you today, because I would be a cardboard cut out. But I call them on the phone, and I meet them for lunch. I would be rotten, at best mediocre at my job if those other things were not true.
You cannot be really first rate at your work if your work is all you are. So here's what I wanted to tell you today: Get a life. A real life, not a manic pursuit of the next promotion, the bigger pay cheque, the larger house. Do you think you'd care so very much about those things if you blew an aneurysm one afternoon, or found a lump in your breast? Get a life in which you notice the smell of salt water pushing itself on a breeze at the seaside, a life in which you stop and watch how a red-tailed hawk circles over the water, or the way a baby scowls with concentration when she tries to pick up a sweet with her thumb and first finger.
Get a life in which you are not alone. Find people you love, and who love you. And remember that love is not leisure, it is work. Pick up the phone. Send an email. Write a letter. Get a life in which you are generous. And realize that life is the best thing ever, and that you have no business taking it for granted. Care so deeply about its goodness that you want to spread it around. Take money you would have spent on beer and give it to charity. Work in a soup kitchen. Be a big brother or sister. All of you want to do well. But if you do not do good too, then doing well will never be enough.
It is so easy to waste our lives, our days, our hours, and our minutes. It is so easy to take for granted the color of our kids' eyes, the way the melody in a symphony rises and falls and disappears and rises again. It is so easy to exist instead of to live.
I learned to live many years ago. I learned to love the journey, not the destination. I learned that it is not a dress rehearsal, and that today is the only guarantee you get. I learned to look at all the good in the world and try to give some of it back because I believed in it, completely and utterly. And I tried to do that, in part, by telling others what I had learned. By telling them this: Consider the lilies of the field. Look at the fuzz on a baby's ear. Read in the back yard with the sun on your face. Learn to be happy. And think of life as a terminal illness, because if you do, you will live it with joy and passion as it ought to be lived".
That was a good read right? Now, go and get a life! I will!
This was a speech made by Pulitzer Prize-winning author, Anna Quindlen at the graduation ceremony of an American university where she was awarded an Honorary PhD.
"I'm a novelist. My work is human nature. Real life is all I know. Don't ever confuse the two, your life and your work. You will walk out of here this afternoon with only one thing that no one else has. There will be hundreds of people out there with your same degree: there will be thousands of people doing what you want to do for a living. But you will be the only person alive who has sole custody of your life. Your particular life. Your entire life. Not just your life at a desk, or your life on a bus, or in a car, or at the computer. Not just the life of your mind, but the life of your heart. Not just your bank accounts but also your soul. People don't talk about the soul very much anymore. It's so much easier to write a resume than to craft a spirit. But a resume is cold comfort on a winter's night, or when you're sad, or broke, or lonely, or when you've received your test results and they're not so good. Here is my resume: I am a good mother to three children. I have tried never to let my work stand in the way of being a good parent. I no longer consider myself the centre of the universe. I show up. I listen. I try to laugh. I am a good friend to my husband. I have tried to make marriage vows mean what they say. I am a good friend to my friends and they to me. Without them, there would be nothing to say to you today, because I would be a cardboard cut out. But I call them on the phone, and I meet them for lunch. I would be rotten, at best mediocre at my job if those other things were not true.
You cannot be really first rate at your work if your work is all you are. So here's what I wanted to tell you today: Get a life. A real life, not a manic pursuit of the next promotion, the bigger pay cheque, the larger house. Do you think you'd care so very much about those things if you blew an aneurysm one afternoon, or found a lump in your breast? Get a life in which you notice the smell of salt water pushing itself on a breeze at the seaside, a life in which you stop and watch how a red-tailed hawk circles over the water, or the way a baby scowls with concentration when she tries to pick up a sweet with her thumb and first finger.
Get a life in which you are not alone. Find people you love, and who love you. And remember that love is not leisure, it is work. Pick up the phone. Send an email. Write a letter. Get a life in which you are generous. And realize that life is the best thing ever, and that you have no business taking it for granted. Care so deeply about its goodness that you want to spread it around. Take money you would have spent on beer and give it to charity. Work in a soup kitchen. Be a big brother or sister. All of you want to do well. But if you do not do good too, then doing well will never be enough.
It is so easy to waste our lives, our days, our hours, and our minutes. It is so easy to take for granted the color of our kids' eyes, the way the melody in a symphony rises and falls and disappears and rises again. It is so easy to exist instead of to live.
I learned to live many years ago. I learned to love the journey, not the destination. I learned that it is not a dress rehearsal, and that today is the only guarantee you get. I learned to look at all the good in the world and try to give some of it back because I believed in it, completely and utterly. And I tried to do that, in part, by telling others what I had learned. By telling them this: Consider the lilies of the field. Look at the fuzz on a baby's ear. Read in the back yard with the sun on your face. Learn to be happy. And think of life as a terminal illness, because if you do, you will live it with joy and passion as it ought to be lived".
That was a good read right? Now, go and get a life! I will!
Tuesday, January 1, 2008
010108
I just wanted to make a quick blog entry for the first day of the year 2008, the Beijing Olympic year! I'm still wishing and hoping that we could go to China during the Summer Olympics in August. Still ok to dream right?
Anyway, we're back in Manila. Tet has to go to work tomorrow. It's her first day. As for me, I still have one more vacation day left before going back to the rat race. Speaking of rat, Chinese new year is just around the corner and it's the year of the rat! The animal I hate the most. Absolutely no connection. hehe..
I have so many things I'm looking forward to this year. I am really excited of what God has in store for us. But my prayer is simple, good health for my family and for us to be far from harm or danger. All other blessings after that I consider a bonus from God.
Let's celebrate the new year with a smile and a grateful heart!
Anyway, we're back in Manila. Tet has to go to work tomorrow. It's her first day. As for me, I still have one more vacation day left before going back to the rat race. Speaking of rat, Chinese new year is just around the corner and it's the year of the rat! The animal I hate the most. Absolutely no connection. hehe..
I have so many things I'm looking forward to this year. I am really excited of what God has in store for us. But my prayer is simple, good health for my family and for us to be far from harm or danger. All other blessings after that I consider a bonus from God.
Let's celebrate the new year with a smile and a grateful heart!
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