14/04/2013
OPENED MY EYES TO BIGGER OPPORTUNITY TO ENTREPRENEURIAL WORLD
Subject: John Gokongwei , Jr. - Ad Congress Speech
Powerful, inspirational words from John Gokongwei. This is how we Filipinos should challenge ourselves and act individually and collectively as a nation.
John Gokongwei , Jr.
Ad Congress Speech
Nov 21, 2007
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.
CONT'D...
