Ms Teresita Sy Coson
Vice chair, SM Investments
Mr Tony Tan Caktiong
President & CEO, Jollibee Foods
Mr Kenneth Cobunpue
Creative director and CEO, Interior Crafts of the Islands
Ms Pacita Juan
President, Figaro Coffee Company
Mr Mark Watkinson
President and CEO, HSBC Philippines
Mr Junie Velso
SVP Corporate and Institutional Banking, HSBC Philippines
Mr Wick Veloso
Treasurer and head of global markets, HSBC Philippines
The purpose of our discussion is to talk about the Philippines going global. Can you talk about your companies expansion abroad?
Tessie Sy: WeÆve established three shopping centres now in China: two in Xiamen and Jian Jiang, one in Chengdu. We are setting up another one. We exported our brand of shopping centres which was well accepted by the local government as well as the consumers.
Tony Tan Caktiong: We went out quite early, I remember, way back in 1987 we were in Brunei. And even before that, we went to Taiwan and coincidentally Henry Sy, said after one visit, ôThis is a tough market.ö We did not listen and we proceeded with our plan. We failed in Taiwan. But Brunei is still very successful for Jollibee. Right now, we are in China. We acquired a local brand three years ago. We are also in Indonesia and we are also in places with Filipinos like the USA and Hong Kong.
So you have twin strategies: one, the Philippine diaspora; and two, the
Chinese community?
Tan Caktiong: Yes. One is going after the Philippine market and the other one is going after the local market. For example, in Indonesia, we have a Chowking operation there. ItÆs purely for the locals.
Sy: Tony has already conquered the Philippines, so he has to go abroad.
Anyway, I think your Chinese operation is doing well and we would like to have your brand in our malls.
Pacita Juan: Well, like Tony and Tessie, we also set our sights on China. I first visited Shanghai in 2002, and we put up our flagship store there in 2005. So weÆve been there for two years and we cater to the mainstream China market.
The Filipinos, you know, are very proud to see us there, but the market we are mainly tapping are the Chinese educated abroad.
What makes you think your brand of coffee shop will work in China?
Juan: Well, Shanghai is a bustling city, of course, and I see that a lot of people also have been to Europe, and our concept is really a European cafT concept as opposed to other brands that are out there. So people can identify with the cafT culture of Europe even if itÆs owned by a Filipino. I mean, there is a need for a place where they can hang out, read books etc. So we have book exchanges - English language books - we have activities that cater to an international clientele. So thereÆs a space for us in China.
Kenneth, you also have been very successful in exporting.
Kenneth Cobonpue: WeÆve been exporting since 1984. My mother started the company and I went to school abroad. We used to follow the traditional business model, which was manufacturing our own designs and selling them under the labels of different foreign buyers. When I came back in 1998, I knew this was not going to last because places like China and Vietnam were getting cheaper. So I started to create my own designs under my brand. With my brand I want to make Filipino culture modern and global.
So how important to your marketing effort and brand was it that Brad Pitt
and Angelina Jolie bought your furniture?
Cobonpue: In Latin America and Asia, those names carry a lot of weight. In America and Europe, to a lesser extent.
Tan Caktiong: Have you had repeat business with them?
Cobonpue: Yes, Brad has been a repeat client for years now û over three years in fact.
Mark, do you have any words or comments on Philippine companies going international?
Mark Watkinson: The whole concept of Philippine companies going overseas, in my view, is still relatively new. But within an hour-and-a-halfÆs flight from the Philippines is one of the worldÆs most dynamic economies and that must be a very tempting opportunity for a number of Filipino companies, which have the confidence to branch overseas. So my sense is, while moving the Filipino brand overseas is relatively new, I think we will see more of it.
Junie Veloso: Just to reinforce your point, Mark. WeÆve looked at some numbers for the FDI direct investment outpost from the PhilippinesÆ first five years of this decade. ItÆs $400 million. Malaysia is about $7 billion, Thailand is about $1.3 billion, and of course, Singapore is very large at $46 billion.
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