January Issue 2009 by edlyn

MASIGASIG VO L U M E

•

I S S U E

JANUARY/FEBRUARY 2009

PUBLISHED BY GLOBE BUSINESS FOR SMEs

AMINA ARANÀZ-ALUNAN’S pretty bags are turning heads here and abroad Taste sweet success with a CHOCOLATE BUSINESS that is never out of season Make inventory management more efﬁcient with IOS

From SMALL-TIME

BIG-TIME

Learn how ROBERTO CLAUDIO of Toby’s turned his tiny toy store into the country’s leading sports chain

MASIGASIG Table of CONTENTS

15 COVER:

TOBY’S Roberto Claudio found opportunity in crisis to build the country’s biggest sports chain

EDITOR’S NOTE It’s hard to feel cheery and bright this new year, what with the chief of the International Monetary Fund himself announcing last December that the ﬁnancial crisis would worsen in 2009 and affect the whole world.

GLOBAL ANG DATING

But we would like to enjoin entrepreneurs to view the crisis not just as a challenge, but also as an opportunity. “Be greedy when everyone is panicking, panic when everyone is greedy,” chimes ﬁnancier Warren Buffet, who is quoted by sports chain superstar Bobby Claudio of Toby’s in our cover story. Business can be good during hard times, you just have to make a few adjustments—cut back on expenses, use low-budget marketing (our Helpline section this month teaches you how), do regular ﬁnancial checks, provide sales training, and manage your customer relationships.

CELEBRITY RAKETS

Finally, remember that the business landscape—much like life in general—is a series of ups and downs. Some years may be bad, but they do not—and cannot—stay bad forever. The important thing is to maintain a winner’s attitude—steely determination plus a never-say-die attitude. This is what it means to be masigasig, and it is also why we continue to be here to serve you.

Amina Aranáz-Alunan proves Filipino indigenous materials and have international appeal

Film director Erik Matti makes good business out of providing good food, beer, and movies

HOT SPOTS

The town of Kabayan in Benguet offers investment opportunities --from woven clothing to coffee and tea

IN EVERY ISSUE

STAFF

5High Tech 8Helpline 9Franchising 101 12Hot Negosyo 22Batang Negosyante Jaclyn Lutanco-Chua Sunshine Selga Mari-An Santos Dino de Ocampo

Editor-in-Chief Managing Editor Associate Editor Art Director

Katrina Tan Bubbles Salvador Jemps Gallegos Rose Galvez Patricia Paredes Leslie Lee Stephanie Dychiu Abby Yao Marjorie Duterte

Writers

Vincent Coscolluela Jun Pinzon Mark Ches Ang Ocs Alvarez Ogi Sugatan Heidi Pascual

Photographers

Jeng Flores Yen Uy Chichi Sotomil

Makeup Artists

Junn delas Alas Dondi Limgenco

Project Managers

Globe Advisory Team Ailene Averion, Aldwin Co, Cielo Javier-Sonza, Alain Sebastian, Michelle Perlas, Barby Coronel

ma•si•ga•sig – determined, persistent or motivated, with a strong sense of direction in terms of goals to be achieved.

A special publication made by Summit Media for Globe Telecom. For special publication inquiries, please call 451-8888.

Have a happy and prosperous 2009!

Jaclyn Lutanco-Chua Editor-in-Chief

The start of every year heralds new beginnings. This year, despite global economic fears, small and medium enterprises need not fret. Survival in times like these is not unlikely, after all. It all depends on an entrepreneur’s ability to review and reinvent his business. This is not the ﬁrst time the country has faced difﬁculty: there were those turbulent years in the 80s following the assassination of Ninoy Aquino; there were the 90s when many businesses were forced to endure daily blackouts, not to mention the Asian currency crisis; and so much more. But look around—a lot of SMEs that started around those times are still around even now. If they could hurdle those challenges, why can’t you? Globe stands with all entrepreneurs who are equipped with passion and perseverance. Together, we will continue to help your business grow and connect you to more people that will spell businesssuccess. Globe Business pledges to make your business operate smoother, faster, and more affordably than ever before.

Maridol Ylanan Head-Corporate & SME Segments

Call the Globe Business Hotline at 730-1288 or 1-800-8-730 1288 for inquiries on Globe products and services, or visit any Globe Business Center or Globelines Payments and Services Center. ●

For inquiries, comments or suggestions on Masigasig magazine, e-mail sme@globetel.com.ph or visit www.sme.globe.com.ph. ●

ASKED & ANSWERED

LETTER OF THE MONTH CLOTHING QUESTION

Hi, Masigasig! I would like to start a sideline business in the clothing industry. But since I am based in the province, is there a way I can source textile through the Internet to save on traveling time and expenses? Any ideas that you can give to get me started would be most appreciated.

Regards, BEV IAN GARRIDO E-mail: swoops@mountaineers.net

Dear Bev Ian, Thanks for writing! First of all, you are right to consider the Internet—it is chock full of directories and sources for your textile needs. Try websites like ESourceApparel (http://www. esourceapparel.com) or the Philippine Garment Manufacturers (http://www. alibaba.com/countrysearch/PH-suppliers/ Garment_Manufacturers.html)—both of them list garment and textile suppliers, wholesalers, exporters, and manufacturers from all over the country. I’m sure there are many others out there, just look for them using your preferred search engine. A caveat though: like with anything else you see on the Internet, treat every information with a grain of salt. I would suggest that when you come across a company that you might want to do business with, check it out ﬁrst with the local branch of the Department of Trade and Industry (DTI) to

START-UP CONCERNS

Hello, Masigasig. Please help—I have three business ideas in mind, but I don’t know which one would suit me best. What are the requirements and procedures for starting any one of the following: a daycare center? A tutorial center? Or a stand selling local and international magazines? I hope you can provide me with enough information to get started. Thanks very much! JOSEFINA CUEVAS Mobile: 0906-2036116

Dear Joseﬁna, As much as we would like to assist, answering your questions will take up more space than is allotted for this section. Rest assured, however, that we will do our best to answer them—lengthily and more in-depth—in our future issues. In the meantime, may we suggest that you check out our sister magazine, Entrepreneur 4 • JAN/FEB 2009 • GLOBE MASIGASIG

STUDENT THANKS Masigasig

Dearest Masigasig, I am currently a sophomore student taking up Communication Arts at the University of Santo Tomas. I came upon your May 2008 issue while at the library one day, and it was really helpful kasi tamang-tama, it was related to a report we were doing for our Marketing class. I was especially happy to read your feature on Holy Kettle Corn popcorn (under your Hot Negosyo section) since I am a huge fan of the company and their popcorn! How are they doing now? Finally, where can I get future copies of your magazine? I really enjoy reading your articles.

PHOTO BY MARK CHES ANG

see if it is legitimate. You never know who you will encounter online, so it is best to be cautious, especially since there will be money involved.

Thank you and a lot of power to you guys! Keep inspiring people! Godspeed, JOHN ALEXANDER M. AROA Student, University of Santo Tomas

The DTI can also be a good place to look for suppliers; I’m sure they would be happy to assist you. They might probably even recommend speciﬁc provinces or regions where certain materials are cheaper or better, i.e. if you want exquisite embroidery, Lumban, Laguna is the place to go since it is the town’s One Town, One Product (OTOP). Finally, a tip: to succeed in the clothing industry, you must enjoy meeting people, have selling and fashion savvy, adapt well to change, and work long hours. So before starting your own store, gain experience and expertise in the industry by taking related training and courses in places like the Technology and Livelihood Resource Center (TLRC) or Businessmaker Academy. Good luck and let us know how your little business goes. Regards, JACLYN Editor-in-chief

Philippines? I’m sure they’ve already featured articles on how to start all three of your suggested businesses. Log on to www.entrepreneur.com.ph to find out which issues can help you best. Thank you for writing. Do you have any questions about your business that you think Masigasig can answer? Write to us and be our next letter sender of the month! Include your full name, name of business, contact number and e-mail address. The chosen letter sender will win premium Globe items! The winner will be notiﬁed via e-mail and will receive a call from Masigasig.

Dear John, We got in touch with Derrick Chiongbian, founder and CEO of Blue Kettle Corp., and he is happy to share the following developments: 1) Aside from their original kettle corn, Holy Kettle Corn now sells three additional ﬂavors—cheese, barbecue, and sweet corn. 2) You can now enjoy your bag of Holy Kettle Corn Popcorn for a longer period of time! In our May 2008 issue, Derrick shared that the packaging they were using kept the popcorn fresh and crunchy for up to three days if left unopened. Well, they’ve since upgraded this packaging—the popcorn can now still stay crunchy for up to one month (as long as it’s unopened)! Now you can take your favorite bag of Holy Kettle Corn with you when you go on long trips. 3) Aside from malls, schools, and MRT stations, Holy Kettle Corn is now also available in select 7-11 stores in Metro Manila. 4) Apart from franchising, Holy Kettle Corn is now open for distributorship! Anyone who’s interested can e-mail bluekettlecorp@yahoo.com. Hope this answers your question about Holy Kettle Corn. Derrick promises more things to come this 2009, including “hitting all the places we weren’t able to hit before.” How exciting! Finally, you can get a free copy of Masigasig when you buy an issue of Entrepreneur Philippines magazine, or you can just get one when you pass by any Globe Business Center. Finally, you can also view all our past issues on the Globe Business website, www.sme.globe.com.ph.

HIGH TECH

INVENTORY MADE

EASY

How Globe’s Inventory Ordering System (IOS) lets small businesses manage their inventory and supplies more efﬁciently—plus, 6 reasons why your business should have it

2. There is zero or reduced process errors from manual inputs, since the system does all the work by itself. All the business owner has to do is cull the reports on the IOS and analyze the data. 3. The system generates accurate orders and sales reports, making for efﬁcient internal communication.

WHY IT WORKS FOR BUSINESSES

1. It’s an affordable solution. There’s no need to worry about added operation costs for IOS, since it’s an affordable solution specifically designed for small to medium enterprises (SMEs). First of all, it only uses a regular CPU that acts as the business’ server. The system is also easy to learn: IOS utilizes common technology that we use every day, such as text messaging or SMS, broadband, a PC, and a Windows-based application.

BY BUBBLES SALVADOR

eeping track o f y o u r products can be difﬁcult, especially if you have more than one branch or do not have time to visit your store daily. With the advent of mobile phone services, business owners can now keep control of their business even when they’re not always physically present. IN A NUTSHELL

The Inventory Ordering System (IOS) is a must-have for businesses that require frequent replenishment of inventory. It’s a new system that allows your branches to order supplies in just a few keystrokes. This computer application records and stores text messages sent to the main office’s IOS mobile number in a computer. The application in the computer transforms these text messages received into organized and easily understood information (e.g. orders) used by staff in the office. Here’s how it works: Your branch or outlet orders via text. Then, the system confirms the order via text. Upon confirmation, the orders are automatically loaded into the Globe server, delivery is scheduled, and statements of account are prepared.

BENEFITS OF THE SYSTEM

What used to be possible only with expensive solutions typically bought by big companies can now be availed by small businesses as well. The service makes systems more organized and easily manageable. How? 1. IOS reduces manpower hours and resources because it gives businesses the capability to computerize the inventory process. Employees with these responsibilities can now focus on other tasks.

WHAT THEY SAY: “We decided to subscribe to IOS because we wanted to serve our branches and customers better. We trust Globe as a brand, including, of course, its products and services. We believed that IOS would solve concerns on communications, logistics, and more. IOS generates the following data at once: inventory, orders, sales performance reports, etc. It’s deﬁnitely a new way of doing things! Globe is very supportive to their clients, since they provide after-sales service. This is a very powerful tool for SMEs and we really recommend IOS to other entrepreneurs because it’s an efﬁcient and effective business solution.” ZELL DELA CRUZ Commissary, Branch & Marketing Manager Tsoko.Nut Batirol Website: www.tsokonutbatirol.com

2. It’s a unique system. Similar applications are offered by other providers or developers, but they only guarantee after-sales service, but not the backend technology by which it runs. IOS subscribers, on the other hand, are assured that Globe can be their one-stop shop, since Globe takes care of the network (broadband and mobile service) by which the application runs. 3. Globe provides high quality support. In addition, Globe provides a pre-sales support team assigned to a client to scope out and evaluate exact requirements of the business. This assures that IOS will be to the client’s speciﬁcations. ●

FOR MORE INFORMATION ABOUT IOS: Call 730-1288 or 1-800-8-730-1288 toll-free via Globe or visit www.sme.globe.com.ph JAN/FEB 2008 • GLOBE MASIGASIG • 5

CELEBRITY RAKETS

AN UNDER-THE-RADAR

SUCCESS

Filmmaker ERIK MATTI and cinematographer LYLE SACRIS’ churn out a hit business with their restaurant-bar-movie theater

RIK MATTI is a well-known director, writer, and producer whose works include ﬁlm and television hits like Gagamboy, Rounin, and Exodus: Tales From the Enchanted Kingdom. On the other hand, LYLE SACRIS gained fame when he bagged MTV Pilipinas’ Music Video of the Year for singer Kyla’s chart-topping single Hanggang Ngayon. It was Erik who presented him with the award onstage, and the two became fast friends after that. At gatherings with other friends in the industry—which included actor- restaurateur Joel Torre and director Lav Diaz—talks would occasionally crop up about how it would be like for all of them to band together and put up a small moviehouse cum bar/restaurant, where they could all screen movies they liked, and get cheap but good chow and beer at the same time. “Twenty years na siguro puro ganoon, puro plano lang ‘yung mga tao,” Lyle observes, half-joking. But in the end, it was just Erik and Lyle who chose to make the talks a reality. They decided to name their theater-restaurant MOGWAI— after the titular cuddly creatures that turn into monsters in the 1980s movie Gremlins—because they wanted a cinematic reference that wasn’t pretentious.

MAKEUP BY YEN UY

B Y R O S E G A LV E Z • P H O T O S B Y O G I S U G A T A N

ERIK MATTI (left) and LYLE SACRIS: “We want to strike a balance between being patrons of cinema and businessmen.”

BUILDING THE DREAM

The partners chipped in P1 million each from their savings to begin construction in 2007. Originally, Lyle was offered a spot for Mogwai alongside the University of the Philippines Film Center in Diliman, Quezon City. But since it was a blank lot and required the structure to be built from scratch—which meant they would have to shell out more capital—the partners declined and looked elsewhere. At that time, they were already regulars at Cubao X, a complex of thrift shops and art galleries in the area formerly known as the Marikina Shoe Expo. Erik’s hits include sci-fi action flick “Nalaman naming Gagamboy (left) and Metro Manila yung isang art gallery filmfest drama Mano Po 2; (right) Lyle shot to fame when he won Best Music dun, aalis na sa June,” Video for Kyla’s Hanggang Kailan Lyle says. He and Erik single, featured in this debut album immediately took advantage of the affordable rent and “good vibes,” cut a deal with the landlord, and went to work refurbishing the place. They fully expected to open in a month’s time, but got stuck in a rut. “The contractor got the design all wrong, and we had to remodel a second, third, 6 • JAN/FEB 2009 • GLOBE MASIGASIG

CONTACT DETAILS Mogwai Unit 62 & 63 Cubao Expo, Gen. Romulo Ave., Cubao Mobile: 0927-3658675 E-mail: mogwaiﬁlm@yahoo.com Website: mogwaiﬁlm.multiply.com

and fourth time,” Erik says. Finally, they had Erik’s nephew, art director Richard Somes, try his hand at the renovations, and thankfully, he got everything right. “It took sixteen weeks before we were happy with how the place looked,” Erik says. “We were shelling out money left and right because remember, aside from paying for the extended construction, we were also already being charged rent.”

CELEBRITY RAKETS WINGING IT

Erik and Lyle admit that they went into business with their eyes closed and “basically just winging it.” So much so that when they opened in October, Lyle says he was alone in managing the place, with just four staff to assist him—a manager, a cook, and two waiters. They had no training and no system whatsoever that he sent the staff into a mild panic when he ordered a simple cup of coffee. In terms of sales and number of visitors, the ﬁrst day of business was a failure, but Erik and Lyle don’t see it as a defeat. “Wala ngang na-generate that day kahit piso but success siya because natuloy pa rin ‘yung business,” Lyle says. “Wala rin pumunta that day because we had no publicity,” Erik reminds us. “Never kami

things up even more. We were determined to make it work ourselves.”

LEARNING FROM THEIR MISTAKES

The ﬁrst thing Erik and Lyle did was to admit that they had no idea how to run a theater and restaurant. In all humility, they asked help from others who had once offered assistance but whom they brushed off. Lyle got his sibling’s best friend—who runs her own food business—as the manager. Once someone more experienced was in place, things started looking up for Mogwai. If the ﬁrst half of 2008 saw Erik and Lyle paying for Mogwai’s rent and employees’ salaries out of their own pockets, the latter half saw Mogwai paying for itself, with some leftover for savings. Seats are now

times were tough. “Kadalasan noon, abonado kami sa food, sa lahat,” Lyle remembers. “Continuous na tagas talaga ‘yung pera. But we made sure na bayad on time ‘yung suweldo ng mga tao.” Another success secret is that they are very open to change. For example, they initially put up a membership system for their theater, where one had to pay an annual fee to be able to watch all their screenings. The reception was lukewarm, so instead of forcing the members-only component of the moviehouse on customers, they decided to regroup and start thinking of ways to get more people to come to the screenings without a membership. “We’re still trying to work that out,” Lyle says. “At least the restaurant is very successful now,” Erik chimes in. “Actually, ang gusto Erik and Lyle strike a pose inside Mogwai’s theater, located on the second ﬂoor

True to its form, the facade of Mogwai in Cubao X looks like a movie theater

Pica-pica staples constitute much of Mogwai’s menu

nagka-ribbon-cutting because our thinking was, ‘If we build it, they will come.’” By the end of that first week, when still not a soul showed up at Mogwai, Erik and Lyle decided to start letting people know they had opened a theater/restaurant. They texted friends and co-workers, but in a very non-committal way. “We’re artists, not trained marketing or business people, and we’re really not used to selling ourselves,” Erik says sheepishly. But word soon spread, and people started to give Mogwai a try. Still, for the next six months, it was an uphill battle. “All the mistakes were made,” Lyle says. Orders took too long to be served—sometimes up to two hours!—that customers were turned off. “We would be lucky if we made 2,000 a night,” he adds. Because they had no direct suppliers, they had to get their food ingredients and beer from the nearby establishments— gourmet shop Santi’s, supermarket Shopwise, and convenience store Ministop. “We realized that if we wanted to make a proﬁt, we couldn’t go on having retailers as providers for our major necessities. Para kasing sinubsidize mo ng twenty pesos ‘yung mga meals namin noon. Sobrang lugi na kami araw-araw,” Lyle says. “But we never thought of quitting,” Erik says. “Sometimes, we considered bringing in another partner, but we never pushed through because we knew adding another person would just mess

ﬁlled up even during weekdays, while weekends have started to become “standing room only.” Little by little, Erik and Lyle learned to develop a system for ordering supplies. After much canvassing, they now get their meat and ﬁsh from reliable suppliers at Farmer’s Market in Cubao, and their sausages from a processed food company in Bacolod (where Erik hails). As word of their quaint establishment spread, a representative from conglomerate San Miguel Corporation approached them and offered to be their beer supplier. The two also divided the labor—Erik is now in charge of the food, while Lyle takes care of bookings and screenings. They have been featured in magazines like FHM and Preview, featured on the Travel and Living Channel in Singapore, and gotten offers for an outlet to be put up at the SM Mall of Asia. But Erik and Lyle say there will be no outlets; they want Mogwai to be the only one of its kind.

SUCCESS SECRETS

Erik and Lyle readily credit their success to their loyal employees. “These are the same people we had when we started. Nadagdagan lang, and nag-resign ‘yung unang manager because he couldn’t handle things. But never kami nagkamajor problem with them.” One big reason for the employees’ loyalty is because Erik and Lyle looked out for them even when

namin dati, ‘yung bar and resto, support lang ng theater. Eh now, baligtad.” Today, the moviehouse screens a range of ﬁlms, from Erik and Lyle’s personal favorites to local and foreign arthouse ﬂicks. “We want to strike a balance between being patrons of cinema and being businessmen. Kasi we want to help filmmakers who want their movies screened here pero hindi din naman puwede na libre na lahat. Kasi look, air- conditioned itong theater, and all that. So siguro kahit kuryente, baka puwede nilang sagutin.”

TECHIE ARTISTS

For Erik and Lyle—who are both Globe subscribers—the cellphone is an invaluable tool for putting their minds at ease, knowing even if they can’t make it to Mogwai that day because of commercial or movie shoots, they can easily check if the restaurant is running smoothly. It’s also extremely helpful in getting little day-to-day things done. They may be busy at a commercial or movie shoot, but with their phones, the two owners essentially stay on top of things. At least once a day, their manager texts and calls them up to update them or ask to replenish supplies. “When our manager texts me, ‘Sir, wala nang ganito, ganyan ,’ I can immediately call up my maid and have her buy the necessary stuff,” says Erik. ● JAN/FEB 2008 • GLOBE MASIGASIG • 7

HELP LINE

WANT NEW WAYS TO ATTRACT MORE CUSTOMERS?

TRY TIE-UPS!

Horizontal marketing is a clever and cost-efﬁcient way to extend your reach

B Y J E M P S G A L L EGOS & JACLYN LUTANCO-CH U A

hat do the following have in common: a restaurant, a museum, a department store, and a clothing label? Would you believe—their customers! Late last year, customers of high-end retail chain Rustan’s department store were given a catalog for imported clothing brand Banana Republic, which included a coupon that offered a 15 percent discount on any Banana Republic purchase worth 10,000. While this cross-promotion is understandable, given that Rustan’s and Store Specialists, Inc. (the company that brought in Banana Republic) are sister companies, customers also received a promotional coupon for the Chef Laudico Bistro Filipino restaurant at The Bonifacio Global City in Taguig, as well as a discount coupon for the Ayala Museum in Makati. Such is an example of horizontal marketing, deﬁned as when two (or more) companies producing different products but with similar target audiences combine marketing efforts.

WHY IT WORKS

People buy different things all the time—from socks to party dresses, from toiletries to perfume. It therefore makes sense to forge alliances with companies that sell products complementary—not necessarily similar—to yours. When executed properly, horizontal marketing can be a boon even to small businesses: ■ It can be an effective way for a business to increase customers without signiﬁcant additional marketing

investment. For example, when neighboring businesses hold an event, i.e. a sidewalk sale, they will only be responsible for a fraction of the overall marketing investment. ■ Such alliances allow/encourage different organizations to share their expertise and give each other access to new customer segments. You see this around you all the time: kiddie photography studios tie-up with children’s clothes and accessories stores, gyms tie-up with health food stores or spas, and appliance repair centers collaborate with home cleaning companies. ■ Small businesses with little or no brand identity can boost their image by offering bigger, more established brands some type of promotion for their customers. For example, if you own a dessert café, offer the well8 • JAN/FEB 2009 • GLOBE MASIGASIG

Horizontal marketing at work: Thanks to this promo, select SMEs in the retail, food, and even publishing sectors may enjoy business from HSBC cardholders

HELP LINE known bookstore in your area a ton of “Free dessert!” coupons. The big bookstore may accept it because it’s a free gift, so when they hand it out, not only do you get an implied “endorsement,” but also access to all the customers looking for a place to snack after a day of shopping. The increased trafﬁc will likely cover the discounts you offer.

C R E AT E A W I N N I N G STRATEGY

Here are some ways you can make your horizontal marketing program a success: ■ BE A FRIEND FIRST. Don’t be in such a hurry

to snag those customers that you offer a tepid promotion. Instead, have the customer’s experience in mind when you band together with other companies, so avoid piece-meal efforts. What other products or services would your clients like to receive? What would give them a compelling reason to ‘might as well try’ a new thing? Then pitch your ideas to your neighbors. For example, if you are a bookstore and are next door to a restaurant and an accessories shop, why not organize a “Children’s Fair”— you host a storytelling session, the restaurant sponsors the snacks, and the accessories shop

People buy different things all the time. It therefore makes sense to forge alliances with companies that sell products complementary—not necessarily similar—to yours.

takes care of the decorations and giveaways. It’s a win-win situation for all—even for the parents and the children. ■ EMPHASIZE ‘WHAT UNITES US’. Rally your

fellow restaurateurs to organize a breakfast buffet for a cause; collaborate with fellow organic food enthusiasts to hold a fitness festival; get pet store owners to help advertise a “Pet Blessing Day.”

SOMETHING TO THINK ABOUT

Horizontal marketing is essentially collaborating with a business that complements yours, but be sure you have studied all possibilities and scenarios before entering into the relationship. Doing business with someone who may have a personality or management style different from yours may also compound matters. But as long as everything is handled professionally, you and your partner can count on stretching your marketing budgets further than ever. ●

FRANCHISING 101

LESSONS TO BE LEARNED Some mistakes new franchisees make and how to avoid them

ew franchisees sometimes carry with them misconceptions about the business that can be detrimental to their success. Those who’ve been there and done that from the Association of Filipino Franchisers Inc. share some of these mistakes with us, and how to best avoid them: Common mistake #1: Treating your franchise as a sideline. A lot of people get into a franchise “thinking they don’t have to work” and that it “works on auto-pilot”, YSA Skin Care president Robert Nazal and Holy Kettle Corn Chief Operating Ofﬁcer Aristotle Alipon observe. On the contrary, you need to put in your time, hard work, physical presence, and care to make your franchise grow. In the absence of a professional managing team, a business will always need the hands-on management of it’s owner, says Bibingkinitan and The Tea Square

president Richard Sanz. “That is why we require all our franchisees to log in at least four hours per day in their franchised outlet to ensure their focus,” he says. Common mistake #2: Neglecting to improve yourself. Pica Pica Franchise Director Mercedes Mejia believes that being a business owner means having good people skills and having the ability to manage employees. So take courses or study articles that teach about management and self-improvement; when you improve yourself, you improve your business.

proposed the right location, and if they can manage the franchise well. Others make the mistake of choosing franchises based on price and affordability, shares Nazal. Although ﬁnancial gain is one of the reasons to franchise, it should not be the ONLY reason. “In our franchise orientations, we always mention never to work for money,” says Sanz. Among his franchisees, those who work with zeal and passion are the most successful because “their passion for the product and business drives them to excel, then the money abundantly ﬂows afterwards as a result of their passion and zeal.”

Common mistake #3: Focusing on money too much. “Relatives of OFWs often come to the ofﬁce and wave their money around, thinking that it is the only thing needed to acquire a franchise,” shares Canton Dimsum House owner Gilbert Jim. He says an applicant must also consider if they have

Common mistake #4: Charging personal expenses to the business. Some new franchisees make the mistake of charging their family’s expenses like groceries and other utilities in the income of their franchise; this eats up their operational expenses and messes up their

BY MARJORIE DUTERTE

ﬁnancial accounting. Aquabest’s Neil Delgado suggests to “Get a salary from the business then deduct your personal expenses from there.”

the business they are entering, “points out Jovic Navarro of The Cockhouse. “Study the market well and be prepared for the lows because there will be dips in your income,” advises Alipon. At the end of the day, your franchise’s success actually depends on you.

Common mistake #5: Having unrealistic expectations. Although the failure rate in having a franchise business is Knowing what not to do helps relatively low, all franchisors you focus on what you need to agree that they cannot guarantee do in order to succeed. Cheers to a 100% success rate because it a great year ahead! ● depends on a variety of factors. Some franchisees expect their franchisors to do everything The for them, which is a common Association misconception. While of Filipino franchisors are there to Franchisers Inc. support and guide you, (AFFI) seeks to managing the business professionalize and and running it lies on standardize the local your hands. You also franchising need to manage your industry. For expectations. To prepare more details, log on to for the natural highs and www.afﬁ.com.ph. lows of doing business, “they should have a passion for

JAN/FEB 2008 • GLOBE MASIGASIG • 9

HOT SPOTS

KABAYAN, BENGUET This quiet town aims to move forward while honoring its past

BY MARI-AN C. SANTOS PHOTOS BY MARK CHES ANG & JUN PINZON

he town of Kabayan in Benguet is located 85 kilometers from Baguio City. It is known to adventurers as jump-off point for climbing Mt. Pulag, the highest peak in Luzon and second highest in the country. Bulalacao Lake, awarded the Cleanest Inland Body of Water in the Philippines, is also located here. The people in Kabayan are vigilant about preserving their history, as this is the cradle of the Ibaloi tribe that comprise most of the residents of the province. Ibaloi is the only tribe in the Philippines that practiced mummiﬁcation, and Ibaloi Mummies can still be found in Kabayan. They have been declared a National Treasure of the Philippines. Almost the whole year round, foreign and local tourists travel to Kabayan to visit these various tourist spots, but there are very few places that cater to them. Entrepreneurs who will put up businesses for hospitality and ecotourism can expect an open market here. MAKING IT TO THE OTOP

Kabayan’s OTOP (One Town, One Product) is Gipah herbal tea. According to Kenneth Kelcho, volunteer marketing assistant for Gipah tea, among the scientifically proven health benefits derived from drinking gipah (Sarcandra glabra) are cleansing of the body system and relief of pneumonia, influenza, acute gastroenteritis, and urinary tract infection. Studies have also indicated that Gipah may cure lung, gastric, and colon cancer. The processing plant in Barangay Duacan, Central Kabayan, is highly mechanized and yields up to 50 boxes a day (each box contains 10 teabags). Gipah plantations, grown in backyards, total two hectares. Residents harvest mature leaves, then wash and air-dry them in a shed. They sell these to the cooperative for 200 per kilo. The dried leaves are then brought to the processing plant, where they are sorted and screened, then dried in the oven for 15 minutes, and 10 • JAN/FEB 2009 • GLOBE MASIGASIG

pulverized. These are fed into the tea bagging machine, which yields labeled teabags,and are manually sealed in individual plastic sachets. Gipah Herbal Tea was awarded 2nd Place in Best Packaging at the Agraryo Trade Fair 2004 and Best Product for Export in the Food category at the Agraryo Trade Fair 2005. In Baguio, they are available in tourist hubs like Tam-awan Village, Cafe by the Ruins, and Ebai’s Coffee and Pastry. Kelcho says the cooperative needs help in marketing the product.There is no internet access in Kabayan, but cellphone reception is strong, and this is the way that orders, mostly coming from Baguio, are made. Entrepreneurs who want to help get Gipah into supermarkets—and eventually the global market—are welcome to help.

SHOOT DIRECTOR: CINDY DY

HOT SPOTS CULTIVATING THE BEAN

Arabica coffee, which is highly valued for its rich aroma and full flavor, thrives in Kabayan. According to figures from Benguet Coffee Link, Kabayan has the most number of Arabica coffee plants in the province, yielding approximately 224,100 kilograms a year. However, coffee farmers are not organized, and are at the mercy of “collectors” who go from house to house, arbitrarily sorting and grading, then buying their harvested beans. With this system, these “collectors” are able to dictate the price, and then sell the beans to shops in Baguio or Manila. Generally, the Philippines only exports dried raw coffee beans, but imports coffee roasts. Since the market value of coffee beans increases when they are roasted, entrepreneurs can look into devising a system whereby they can source coffee beans from Kabayan and roast them, then make them more competitive with proper distribution, marketing, and pricing.

WEAVING THEIR LIVELIHOOD

Well-known all over the province of Benguet, Kabayan Weaving Arts and Crafts began as a source of livelihood for the women of Kabayan cut off from Baguio by the earthquake of 1990. Today, the Kabayan Women’s Development Association comes up with new designs for table runners, bags, purses, cellphone cases, and even clothing almost weekly. These are displayed at their weaving room in Poblacion, Kabayan—tourists drawn to Kabayan inevitably make their stop here—as well as at the Tiong San Department Store in La Trinidad, Benguet. Groups also place orders for weddings, gifts or giveaways for Christmas. Entrepreneurs can choose to invest in the business for purchase of inputs, e.g. thread, or market and distribute the high-quality woven products.

Lemongrass Essential Oil with Pure Coconut Oil sold in 50 mL bottles was awarded Best New Product of Benguet 2008. It holds much promise as lemongrass thrives in the backyards of residents and along hills in Kabayan

CONTACT DETAILS MAYOR FAUSTINO AQUISAN 0927-2305038 Municipal Staff 0915-4033211 Gipah Tea Through KENNETH KELCHO : 0927-8101229 Kabayan Weaving Arts and Crafts, Kabayan Women’s and Farmers’ Development Association, Inc., & Kebajan Grassroots Development Association, Inc. Poblacion, Kabayan, Benguet 0915-2055879

(TOP) Kabayan’s OTOP and longestablished herbal remedy, Gipah Tea, is processed mechanically, but packed manually (LEFT) Kabayan has the most Arabica coffee plants in the province, but no distribution system is in place yet The women of Kabayan weave cloth from their homes using upright looms that are then made into coin purses, bags, scarves, and clothing

EXTRACTING A FRESH PERSPECTIVE

Another project of the women’s group is the Lemongrass Essential Oil with Pure Coconut Oil, which made its debut in September 2007 and is now selling an average of 400 bottles per quarter. The product won the Best New Product of Benguet award during the Adivay, the provincial Foundation Anniversary celebration in November 2008. Literally a backyard operation, the processing of the oil is done in the home of Kabayan Weaving Arts and Crafts proprietress Maxencia Pili, while packaging is done in La Trinidad by the Kebajan Grassroots Development Association, Inc., composed of professionals who may have moved away but who still value their roots in Kabayan.

There are plans to produce pure Lemongrass Oil, as well as Lemongrass dishwashing liquid and perfume. Project Coordinator Mildred Benito admits they need investors for marketing and wider distribution of the product. Head over to Kabayan now. There’s no denying that the possibilites for this town— rich in both human and natural resources— are endless. ● JAN/FEB 2008 • GLOBE MASIGASIG • 11

MAKEUP BY YEN UY • SHOOT DIRECTOR FOR CAFÉ XOCOLAT; RICUS AFABLE

HOT NEGOSYO

CONTACT DETAILS Benoit Nikolay #129 Oriole St., Moonville Village, Sun Valley Subdivision, Parañaque City 0917-3271877 Email: info@chocolatesbybenoit.com www.chocolatesbybenoit.com Cafe Xocolat, Inc. 172 B. Gonzales St., Loyola Heights, Quezon City 0917-8480929 www.xocolat.com.ph Heavenly Chocolates Unit 1, Roces Centre 127 Roces Avenue, Quezon City 0915-7882105 E-mail: benjaminvpedro@yahoo.com, ellainessevilla@yahoo.com 12 • JAN/FEB 2009 • GLOBE MASIGASIG

RINA AVECILLA, VALERIE LOPEZ, and PINKY ORTIZ of Cafe Xocolat (not in photo is TRISH MALVAR): “Our customers are those looking for alternatives to the usual coffee concoctions and generic coffee houses.”

HOT NEGOSYO

LOCO OVER

CHOCO

Chocolate products are sweet, sinful—and can make for a successful business B Y K AT R I N A TA N • P H OTO S B Y H E I D I PA S C U A L

hocolates—whether in the form of bars, cakes, candies, or drinks—can be always counted on to be a hit with people of all ages. Here in the Philippines, the past years have seen a noticeable increase in the number of establishments serving assorted chocolate treats. These include: BENJAMIN PEDRO and PHILIP and ELLAINE SEVILLA’S Heavenly Chocolates, a chocolate tasting bar; RINA AVECILLA, VALERIE LOPEZ, PINKY ORTIZ, and TRISH MALVAR’S Café Xocolat, which sells a variety of hot and cold chocolate drinks; and BENOIT NIKOLAY’S Chocolates by Benoit, who sells hand-made Belgian chocolate through the Internet. CAFÉ XOCOLAT

ELLAINE and PHILIP SEVILLA of Heavenly Chocolates (not in photo is BENJAMIN PEDRO): “We want to be the chief promoter of chocolate appreciation in the country.”

It was Valerie and Pinky who came upon the idea of putting up a chocolate bar. While on a trip to Barcelona, Spain, in 2004, they frequented many chocolate shops. “The chocolate drinks there were so thick that it was more like soup, but we had it almost everyday because it was so good,” she recalls. “Pinky and I got to thinking that it would be nice to bring something like this to Manila and tweak it a little for the market.” The duo then invited their college friends, Rina and Trish, to partner in their venture. “Everyone we know—except for those few who are allergic—likes chocolate to some degree, so we didn’t really think there would be much risk in starting this kind of business,” says Rina. In June 2005, they set up their ﬁrst shop at the Promenade in Greenhills. The quartet spent three months perfecting the ‘ultimate hot chocolate’ concoction, pooling 2 million of their savings to source ingredients, create recipes, and purchase equipment and supplies like an espresso machine, a chocolatera used to keep beverages warm, and imported a churrera to make churroz, or the sweet dough covered in cinnamon and sugar that is commonly served with hot chocolate. In the beginning, their customers were older people. “After all, they were the ones who were raised to drink chocolate,” says Rina. But soon, thanks to word-ofmouth and favorable reviews in well-known food blogs like Dessert Comes First (www.dessertcomesfirst. com)—that claims Café Xocolat serves the best hot chocolate in town—the Promenade branch became a hit with young and old alike. In August 2005, just two months after opening in Greenhills, the partners opened their second outlet in SM Megamall.

HEAVENLY CHOCOLATES

On the other hand, cozy chocolate café Heavenly Chocolates opened its doors in Quezon City in July 2008 and immediately set about positioning itself as the “chief promoter of chocolate appreciation in the country,” says Benjamin. Similar to the founders of Xocolat, Benjamin came up with the café’s concept while traveling abroad. “I go to Central and South America a couple times a year, where I noticed that these former Spanish colonies drink hot chocolate like us—flavorful, rich, and thick—unlike the French or Swiss varieties that use cocoa or chocolate powder. What’s interesting is that their chocolate flavor changes from one region to another!” he shares. “So I figured, why not introduce the unique flavors from other countries to Pinoys?” He invited his friends Phillip and Elaine to join him in this venture and the trio invested a little over one million pesos to set up their quaint café. Today, Heavenly Chocolates offers a collection of five distinct coffee beans—from Ecuador, Ghana, the Ivory Coast, Madagascar, and Peru—and also serves chocolate desserts like cakes, fondues and novelty treats like chocolate buttons which can be made into hot cocoa. They are the exclusive distributors of Japanese chocolate brand Sachi Nama—handmade bars with posh flavors like Champagne, Strawberry, and Green Tea—and even serve chocolate pasta! “If our customers request it, we can also source chocolate-themed gift items for them, such as chocolate frames and towels rolled like a chocolate jelly roll cake,” Benjamin says. His goal for Heavenly Chocolates, he says, is to be the one-stop shop for all things chocolate. JAN/FEB 2008 • GLOBE MASIGASIG • 13

HOT NEGOSYO SWEET INDULGENCE

SPREADING THROUGH TECH

Because chocolate is a specialty product, the business tends to attract the upper AB markets. But knowing that the Philippine market is extremely costsensitive, the owners of Café Xocolat are careful to price

Xocolat offers brownies, churroz, and different ways to enjoy hot chocolate.

themselves affordably without compromising quality. “[At 95 to 145 a cup] our prices easily match our competitors’, but our products are far superior,” Pinky says, adding that their chocolates are sourced from all over the world via the Internet and trips abroad. On the other hand, Benjamin says the reason they chose to locate their shop just off the busy Tomas Morato strip instead of a more costly real estate area like Makati is to keep costs to a minimum and make their products more affordable. “We can’t overprice ourselves to the point where people can only afford to visit us once a year. We try to maintain reasonable prices—from 90 for a cup of coffee to 950 for a whole cake—so people can enjoy our products more frequently,” he explains.

Entrepreneurs of both companies benefit from the marketing power of the Internet. Café Xocolat has recently ventured into exporting its Cacao Mixes to specialty shops abraod, and created a website (www.xocolat.com.ph) for this purpose. “We launched the site a year ago and it has definitely helped drive awareness and create global appeal for the brand. It’s currently being improved and updated, as we still haven’t fully utilized it for sales,” Rina says. Benjamin shares that business has also prospered thanks to good reviews by local bloggers. Technology has also helped improve the way he conducts business.

“Since I’m based in Singapore, where several of our chocolate supplies come from, emails, Instant Messages, and SMS help make communication easier and keep my phone bills to a minimum,” he says.

PROMOTING CHOCOLATE CHEER

Today, Café Xocolat currently maintains four branches, a commissary, and over 30 employees. Each store attracts anywhere from 75 to 100 customers a day. “Our customers are those looking for alternatives to the usual coffee concoctions and generic coffee houses,” Rina says. “This is why each Xocolat café is designed differently and our hot chocolate drinks are served in beautiful stone pottery instead of impersonal paper cups. We market ourselves by focusing on educating the public about our products and chocolate, in general. We also have our baristas taste each drink at the development stage so that they can better tell our customers about them,” she shares. Café Xocolat further holds tasting events upon customer group requests and introduces special drinks each quarter to satiate these local chocoholics. continued on p26

Chocolate buttons, beans, and house at Heavenly Chocolates.

elgian-born Benoit Nikolay of Chocolates by Benoit saw the potential in providing authentic Belgian chocolate in the country in 2006. “I started selling waffles at the International School Manila for charity. It did very well; since these waffles were chocolatecoated, I became interested in doing more chocolate products,” he shares. A former employee of a local Belgian chocolate company, he wanted to share with Filipinos “the true taste of Belgian chocolate.” He spent 100,000 to buy imported chocolate molds and a tempering machine from Belgium, as well as packaging materials. 14 • JAN/FEB 2009 • GLOBE MASIGASIG

Rather than set up his own shop, however, Benoit sells by putting up kiosks in ofﬁce buildings, distributes to other specialty shops, and engages in direct and online selling (www.chocolatesbybenoit.com). “The Internet has proven very effective, and helps us communicate with our customers on a regular basis,” he says. “A lot of people call and e-mail us for orders. If they don’t know which particular product to get, we direct them to our website. We confirm these orders via a phone call and then deliver them.

The Internet and telephone make business easier since we don’t have to meet up with all the people who want to order—one phone call and they can have authentic Belgian chocolate.”

His clients today comprise the A to C market, including the expatriate community. “We make sure to maintain attractive prices— from 50 for a Belgian Waffle Trio to 1300 for our 32-piece box set—as even the high-end market tends to think that imported chocolates can be pricey here in Manila. People like that our products are unique and priced well, and recommend us to their friends,” he says. “Demand is growing. We’ve been in the business for a little Some of Chocolates by over two years, and so Benoit’s tempting treats far, so good!” ●

PHOTOS OF CHOCOLATES BY BENOIT COURTESY OF BENOIT NIKOLAY

CHOCOLATES VIA CYBERSPACE

COVER FEATURE

SLOW and STEADY

WINS the GAME

MAKEUP BY JENG FLORES

How Toby’s grew from a tiny toy store to the country’s biggest sporting goods chain

efore the mid-1970’s, there were no stores that specialized in sporting goods in the Philippines, says ROBERTO “BOBBY” CLAUDIO, founder of the TOBY’S retail chain. Had fate not intervened, even he would never have gotten around to building the network of stores that is now a household name among sports buffs all over the country. BY STEPHANIE O. DYCHIU PHOTOS BY JUN PINZON & VINCENT COSCOL L U E L A

FROM EMPLOYEE TO SELF-EMPLOYED

Bobby’s parents were not entrepreneurs, and it seemed he too was destined for a life in the corporate world. His very first job right after graduating from college in 1972 was with top multinational company Unilever Philippines. But while working in Unilever, Bobby was also very active with the Junior Jaycees, a leadership training organization. On his fifth year with Unilever, he was asked to take charge of the World Jaycees Congress. This meant plenty of traveling, and in no time at all, Bobby had used up all his office’s vacation leaves. He eventually resigned, choosing to devote his time to the Jaycees. To earn money, he decided to channel his savings into an investment.

JAN/FEB 2008 • GLOBE MASIGASIG • 15

COVER FEATURE SAILING THROUGH AN ECONOMIC STORM Thirty-year retail veteran BOBBY CLAUDIO shares tips on weathering the current economic slowdown

CLOCKWISE FROM LEFT: Branded rubber shoes for all occasions; the eyecatching facade of Toby’s in Trinoma; snazzy outﬁts for the fashionable sportsman

Virra Mall in Greenhills was about to be constructed, Happily, business started to do really well. Toby’s and was pre-selling space. He bought a unit on was able to open a second store in SM Cubao by installment and plunked down 150,000, intending to 1983, then a third store in Harrison Plaza by 1984. sell the unit at a profit once the mall was completed. “But our fourth store, which we opened in 1986, was But when the mall was finished in 1978, he found the one that really launched us, because it was in himself unable to sell the unit. Stuck, he decided to SM North EDSA, the biggest mall at that time.” do something with the space. “I bought toys to sell. Of course, the bumps along the way kept I called the store Toby’s Forms and Shapes—‘Toby’ coming. “There was competition from the informal after my eldest son; ‘Forms and Shapes’ so the store sector, like retailers who don’t pay taxes, who were could take any form and shape!” competing unfairly. But we were compensated by Business started to pick up when Bobby the fact that the market was growing. Pinoys were began selling Mickey Mouse and other Disney becoming sports-minded and health-conscious,” merchandise, and he was able to build up some he recalls. capital. But he noticed the toy business was very Tight exchange rate controls in the early seasonal, peaking mostly during Christmas. days were also a stumbling block for the importThere was one item, though, that did consistently dependent business. “It was not easy to source well throughout the year—skateboards. “I wasn’t dollars, and import duties were still high,” he says. really into sports myself,” says Bobby, “but because Despite the challenges, Toby’s continued to of the good performance of the skateboards, I grow, and soon, Bobby was joined by his two decided to get into more sports younger brothers, Jojo and Rod, CONTACT DETAILS: equipment.” This was in 1982; from to run the business. the original 150,000, he raised Toby’s Sports and Hobbies Today, it is Bobby’s 34-yearHead office capital to 250,000. “In retail, old son, Toby, who is in charge 143 Pasig Boulevard, Pasig City you can get suppliers who sell on of operations. The father never Website: www.tobys.com consignment and give you good pressured the son to join the terms, so you can just keep rolling company, it just happened in your capital,” he explains. its own time. “That’s my tip for other parents. If you want your children to become interested in THE EARLY YEARS the family business, give them tasks that they will As a start-up, Bobby did not have an easy time getting enjoy. When my son was small, there was an area in the support of big-name suppliers of the athletic the store where tiles that were newly laid out were apparel and equipment that he was selling. “It was uneven. I assigned him to skateboard over them a long process. We were able to earn their trust by until they were smoothened out!” he laughs. paying on time, from the early years up to today.” He also had to work hard to attract customers to AGE OF EXPANSION his sports-oriented store, which was a new concept In 1992, Toby’s went into franchising to keep up with at that time. He was able to achieve this through “a the demand for expansion. Today, among the total combination of in-store activities, such as [sports] 38 stores in the Toby’s network, 12 are franchised. clinics and product demos, and sustained print “The main reason we got into franchising was to advertising to create brand awareness.” continued on p18 16 • JAN/FEB 2009 • GLOBE MASIGASIG

KNOW WHEN TO CONTAIN YOUR COST. Be efﬁcient with the use of manpower. Get more productivity from each employee. But don’t scrimp to the point that you are cutting costs that are necessary. BE OPTIMISTIC AND DON’T STOP GROWING. Sometimes the best opportunities to invest in future growth come when the economy is crashing. “Like Warren Buffet said, be greedy when everyone is panicking; panic when everyone is greedy,” says Bobby. Don’t let opportunities slip away, “just take things in smaller bites.” THE GOOD AND BAD TIMES COME IN CYCLES. “We notice that every five years, our business experiences a downturn,” says Bobby. In the late 1980’s, the big blow was the assassination of Ninoy Aquino. In the early 1990’s, there were the multiple coup attempts that tried to unseat President Cory Aquino. In the late 1990’s, there was the Asian currency crisis that caused the massive devaluation of the peso. Through it all, Toby’s has kept the faith—and been rewarded. “Crawl, don’t walk; walk, don’t run,” is Bobby’s motto when steering a business through a difﬁcult cycle. ■

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COVER FEATURE

Every Toby’s outlet (like this one in Trinoma) is wellstocked with everything a sports enthusiast needs, from equipment to apparel.

expand to the provinces. Logistically, it’s hard to run a branch in the province by ourselves,” Bobby explains. The success of a Toby’s branch is largely driven by location. “Some locations are not ideal from the beginning, but some start out good then decline as the years go by.” Bobby says his main criteria for choosing a location are population growth, population migration, and the attractiveness of a new mall. He refers to SM Mall of Asia as an example. At ﬁrst, the mall’s location did not seem like it would have good cross trafﬁc, but the developer had a compelling concept. “It was going to be the biggest mall, and how could we not be in the biggest mall? So, we decided to go in,” Bobby shrugs. The decision has turned out to be a good one. When necessary, Bobby has no qualms about closing down non-performing outlets. “Don’t be in love with your business,” he advises. “Don’t hang on to a losing proposition just because of hiya.”

MARKETING TO MANY

Because Toby’s carries a wide selection of merchandise, their customers also comprise a broad range of individuals. “Our loyal clients come from varying backgrounds and [sports] skill levels. We cater to men and women, young and old, those who are just starting out in sports and those who play competitively,” Bobby enumerates. “But our core audience are the sports enthusiasts and athletes who go to Toby’s to purchase technical or competition equipment.” Weekend warriors—those who engage in sports or ﬁtness as a hobby or to stay in shape—make up their secondary clientele, while people who simply want to purchase sportswear comprise the third. 18 • JAN/FEB 2009 • GLOBE MASIGASIG

TECH-SAVVY AT THIRTY

The company keeps up with developments in telecommunications and technology to stay at the top of its game. Its broadband requirements and company cellphone program for store managers are handled by Globe Telecom. But Bobby says one of the best things it has invested in is the interconnection (via internet) of the systems of its individual branches with the systems of its head office. Sales and inventory data in the head ofﬁce get updated as each sale happens in a store. This has brought major improvements to the company’s bottom line. “Until about four years ago, it was just me and my brother choosing what items would go into the stores. Our sell-through was around 50 percent at that time.” That meant only half of the items in the company’s inventory would

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get sold. Remnant items would have to be sold at lower markups, or even at a loss. With the interconnected inventory management system, timely data fed by the stores immediately show what’s selling, what’s not, and by how much. The main inventory database in the head office is also updated automatically. Thus, the company is able to make adjustments quickly and keep the right kinds of items in stock. Coupled with the “younger” style directions of Bobby’s son Toby in choosing what items to carry in the stores—the father admits the son is more in tune with today’s design trends—the high-tech inventory system has increased Toby’s sell-through rate to 70 percent. Online retailing is something the company has not gotten into yet in a big way, though as early as five years ago, it began maintaining an online product catalog on the website www.tobys.com. Customers can conveniently browse through the catalog to see what’s available, then go to the nearest Toby’s branch to purchase the items that they want. “In this country, fulfillment costs are high for internet sales,” says Bobby. “It’s not like the U.S. where you can ship anywhere in the country at a low cost.” As soon as an affordable delivery method is found, the company is well-poised to go full force into online retailing. Toby’s has also gone into lifestyle outlets, counting the popular international fitness chain Gold’s Gym as one of its business lines. “The sports business has gone into lifestyle. It’s a social thing now,” explains Bobby. His company got into Gold’s Gym as a natural result of distributing gym equipment for many years. For Bobby, lifestyle is the future of sports retailing. “The future is in active lifestyle fashion stores, skate parks, sports facilities, and the like.” ●

MAKEUP BY CHICHI SOTOMIL

GLOBAL ANG DATING

AMINA ARANAZ-ALUNAN: “I take pride in giving the Filipino consumer a renewed sense of what is indigenously Filipino.”

The

ASCENSION of

ARANÁZ Amina Aranáz-Alunan’s bags showcase Filipino ingenuity B Y PAT R I C I A R . PA R E D E S • P H OTO S B Y O C S A LVA R E Z

ost young women spend their summer vacations taking up music or art lessons, traveling, or just plain relaxing. AMINA ARANÁZ-ALUNAN spent hers helping out at the factory of her mother’s company, Mianro Inc., which manufactures and exports bags made of straw and other natural materials to high-end retailers in the United States, Europe, and Japan, including Anne Klein, Esprit, and Kate Spade. “I learned all about the different kinds of raw materials that can be used in making bags, I submitted designs, and sometimes I even added ﬁnishing touches on the bags,” Amina recalls. When she got older, she accompanied her mother to meetings with clients, whether here or abroad. “So I really had a front seat view of what it was like to be in the bag exporting business,” she adds.

JAN/FEB 2008 • GLOBE MASIGASIG • 19

GLOBAL ANG DATING DISCOVERING A NEW MARKET

In 1999, the Aranáz family discovered that there was also a local market for their bags. “My brother sold our export overruns to his classmates at the university and did very well,” Amina shares. “After that, we decided to make it a habit to dispose of our overruns by joining Christmas bazaars.” She adds that the whole family enthusiastically participated in this annual activity, not just because it was a good way for the members to bond, but also because they learned many new things about the business. “Selling at bazaars allowed us to interact on a one-on-basis with clients, which gave us more insights into their needs and wants,” she points out. “Plus, since we were able to scope out the competition, we were able to make a lot of improvements on our product to give us our own edge.” In no time at all, Aranáz bags became a favorite of discerning bagaholics. When demand showed no signs of abating even after bazaar season, the family decided to sell their bags at the lanai of their home in Pasig City. “We did not advertise, the event just spread through word of mouth,” Amina insists. “Our home became like a secret shopping destination for those in the know!” “Our straw bags are unlike the usual bayong or pasalubong bags one often ﬁnds in a tiangge or tourist place,” Amina adds. “Ours are of better quality and color, embellished with pretty ﬂowers and elegant appliqués, or simply assembled in a way one would not have thought possible. We make straw bags look stylish: something customers would gladly use to accessorize an outfit and wear to a party. We have had many clients tell us how strangers would just go up to them in malls and streets—even when they’re abroad—to ask where they got their bag. It’s really a thrill.”

JOINING THE BUSINESS

After graduating from college in 2002, Amina went on to pursue a masters degree in accessories design at Instituto Marangoni in Milan, Italy. When she came back home in 2004, she decided to apply her learnings into the family business. Her ﬁrst project—to put up a boutique at an out-of-the-way location as a way of marking the product’s exclusivity, a concept she picked up in Europe. “I didn’t want Aranáz to be just a mainstream brand, I wanted it to be a ‘destination store,’” she explains. “I wanted to maintain that sense of secrecy that has done us very well in the past.” She adds that she wanted to put up a standalone store so that Aranáz could move out of its image as a bazaar brand. “By this time, we had been in the bazaar business for ﬁve years,” she says. “I felt that we were ready to bring the brand a notch higher. We decided to stop selling overruns and start creating collections to cater exclusively to the local market.” 20 • JAN/FEB 2009 • GLOBE MASIGASIG

(Bottom photos) Aranáz also sells its own line of perfume and jewelry

Little embellishments make Aranáz bags one of a kind

“I didn’t want Aranáz to be just a mainstream brand, I wanted it to be a ‘destination store.’” PUTTING UP THE STORE

In 2004, the first Aranáz store opened in the newly-constructed City Golf building along Julia Vargas Avenue in Mandaluyong City. “We did not have to formally promote our opening since the local media had long been interested in us,” Amina explains. So when a top broadsheet got wind of the family’s plans to put up their first boutique, they requested for a first crack at the story. “We set up an interview and photo shoot, and the article came out on the same day that we opened,” she says. “Business was great for the first few months, thanks to that feature.” Loyal customers also dropped in from time to time to check out new designs, often bringing friends and family along with them. At the same time, Amina set out to strengthen the Aranáz branding, putting herself in charge of making the packaging and swing tags, designing how the merchandise in the store would be laid out, sending out press releases to the media and accepting interviews and features. Aside from these, she also dabbled in product innovation, modernizing the look of Aranáz’s straw bags by adding materials like leather, fabric, and beads. Before long, copycats began to emerge. “But I made sure we maintained our edge by keeping close attention to detail, plus using more expensive materials and craftsmanship,” Amina shares.

One difficulty she encountered at this stage was learning how to give orders to her workers. It took some time before they saw her not just merely as the COO—“child of owner”—but one of their bosses. “It was odd at first,” she admits. “Most of our employees have been with us for many years and have seen me grow up.” Amina overcame the situation by following her parents’ own example. “I learned I had to be firm yet understanding. I also found out that when I give instructions, I have to be very specific, so I don’t waste their time or energy in correcting mistakes,” she cites. She adds that there would also be times when local production would take a back seat to meet the orders of her mom’s foreign buyers. During these cases, she had to remind her workers that local needs was just as important as the export production.

GROWING THE BUSINESS

The Aranáz’s City Golf outlet proved so successful that invitations to set up shop in Rustan’s department store and the Power Plant and

GLOBAL ANG DATING

Amina shows off her bestselling design, the Petalia purse

Greenbelt malls came knocking. When Aranáz opened in Rustan’s Makati, Amina discovered that her clients ended up preferring to go there than to City Golf. “I wanted to bring the European life of little streetside boutiques to Manila but I eventually caved in,” she says with a smile. “Filipinos are really mall rats.” So she closed down her City Golf store in 2005 and opened a stall at the Power Plant Mall instead. In 2007, she upgraded the space into a free-standing store, and in 2008 opened her second outlet in Greenbelt 5. This latest branch actually garnered international recognition, having been nominated Best International Retailer in 2008’s London Retail Interiors Awards. “I may have succumbed to the mall mentality that prevails the country, but I made sure that the design of the Greenbelt 5 store was very up-to-date with those of stores abroad,” she proudly shares. “The designer we chose was schooled in London so he had a very forward view on architecture. Our boutique has a very tastefully modern ambience.” Aranáz bags are also sold in department stores in Davao and Cagayan De Oro.

OWNING THE MARKET

Today, Aranáz has solidly established itself as a Filipino handmade designer bag. Whether big, small, bold, understated, having a bit more straw or deviating from the usual straw bag, there is an Aranáz piece for every woman that loves beautifully pieces. “Each Aranáz bag is feminine, glamorous, and best of all, a testimony on just how far a certain raw material can be used. We offer a range of styles—from day to evening bags. These are what set us apart,” Amina shares.

(TOP) A customer browses the selections at Aranaz’s Greenbelt branch; (RIGHT) Evening purses that also make a fashion statement

Her stores continue to attract the A-B income segment, with customers spending at least 3,800 per visit (Aranáz bags are priced from 1,200 to 15,000 apiece). Amina makes sure to come up with two new designs per month, creating a few pieces ﬁrst to gauge the market’s reaction; if all is well, she makes more. She says when it comes to designing, she lets the materials speak to her. “I look at what’s before me and see where my creativity takes me,” she shares. She also continues to help her mother in their export business, picking up many insights along the way. “For instance, I’ve learned that foreigners appreciate the more ethnic and native styles, while Pinoys want something more modern. I also found out that when making bags for foreigners, we have to adjust things like the height of the handle to accommodate larger-framed women.”

TECHIE DESIGNER

Amina currently relies on her blogs (www. aminava82.multiply.com and www.aminava. blogspot.com) to post press releases, sale announcements and showcase her latest styles. “The Internet makes everything more efﬁcient! It has become a very strong marketing tool, especially to clients in the provinces and abroad,” she raves. Plus, her Globe mobile number has not changed for the last 12 years, making it easy for old acquaintances to contact her and conduct business.

FUTURE PLANS

In 2006, Amina started Aranáz White, a wedding line which makes customized bridal

bags, entourage bags, and wedding giveaways. “After all, a couture gown deserves a couture purse!” she says with delight. This year, she says she plans to further diversify the Aranáz brand plans by selling other products such as clothes, shoes and accessories that are not as labor intensive and more affordable. “I take pride in giving the Filipino consumer a renewed sense of appreciation for what is indigenously Filipino,” she shares, adding that she loves to surprise customers with the revelation that majority of her raw materials are sourced and produced locally, yet remain very stylish and modern. What with the rising number of fashion businesses, she knows how important it is to be a cut above the rest and to differentiate her product. “I stand by our design philosophy and brand vision to create handcrafted and stylish pieces. We offer very labor-intensive bags that are difﬁcult to ﬁnd elsewhere.” ● Traveling abroad? When you need to get in touch with clients and suppliers back in the Philippines, call Globe or TM subscribers via G-Webcall for only 7.50 per minute! Save as much as 75% from roaming or IDD costs! To register, text <GWEB ON> to 2865 and access your softphone from www.g-webcall.com (available for Windows and MAC users). is currently available to postpaid subscribers only. Availability to prepaid subscribers and connectivity to other networks shall be offered soon.

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For more information, call (02) 730-1288 or 1-800-8-730-1288 (toll free via Globe); or visit www.sme.globe.com.ph or go to any Globe Business Center or Globelines Payments and Services Center. JAN/FEB 2008 • GLOBE MASIGASIG • 21

MAKEUP BY YEN UY

COVER FEATURE BATANG NEGOSYANTE JAYJAY ONRUBIA-PUNO: “Schu has become known for offering affordable alternatives to women who love expressing themselves through their footwear.”

CONTACT DETAILS Shop Manila, Inc. 5th Floor, Unit 6, OAC Building, San Miguel Avenue, Ortigas Center, Pasig City Mobile: 0915-5761800 & 0905-3299368 Website: www.schushop.multiply.com 22 • JAN/FEB 2009 • GLOBE MASIGASIG

A SHOE-IN FOR SUCCESS JAYJAY ONRUBIA-PUNO hurdled a few stumbles to get her business of selling alternative shoes up and running BY LESLIE G. LEE PHOTO S B Y V I N C E N T CO S CO L L U E L A

pen any discriminating fashionista’s shoe closet and you will most likely see at least one pair purchased from SCHU, the French-Singaporean brand that has become many a local shoe addict’s favorite since it opened its ﬁrst store in the Philippines in December 2004. Credit for this footwear ﬁnd goes to friends and mutual shoe addicts 47-year-old RUBY GAN and 33-year-old JAYJAY ONRUBIAPUNO. “Ruby and I noticed that there were no mid-level shoe brands in the Philippines,” Jayjay explains. “There were only either high-

end brands—where a pair of shoes can cost 5,000 each—or local brands that were sold really cheap but were not really fashionable.” “But once in awhile, women come across shoes that they just have to buy even if there is no event to wear it to; they buy it because it’s cute, or they’re just in the mood for it,” she goes on to explain. “But again, because of price or quality concerns, it’s hard to make such impulsive purchases. Ruby and I felt that this was a void we needed to ﬁll—there was a need for a shop that sold shoes which were trendy, made of good material, but also affordable.”

FILLING THE VOID

would take for our orders from Singapore to pass In 2004, the pair successfully through Philippine customs,” negotiated to bring in Schu, Jayjay says. “The stock believing that the brand met almost didn’t get released on their criteria of affordability time. Photo finish talaga.” and fashionability. “The On the bright side, a negotiations took six considerable amount of months, and the principals customers came by the even flew over here to store, encouraged by word study us and get to know of mouth, as well as publicity the market,” Jayjay recalls. from such large fashion “But the talks were smooth magazines as Cosmopolitan because we knew from and Preview—who were the start what we wanted “hungry for new stores to and did not want for the classy but chic interiors of Schu’s TriNoma branch reflect cover,” Jayjay says. business,” Jayjay says. The the brand’s hip and alternative image Unfortunately, everything MORE HURDLES else after that was hardly a perfect fit. The partners would encounter more problems down the For instance, Jayjay describes her and Ruby’s first day of road. For instance, since they were Schu’s first foreign business in Glorietta in May 2004 as “fabulous but crazy.” franchise, they served as the brand’s guinea pig. “We “Fabulous” because they were finally realizing their dream, had to deal with many quality control issues—the she explains, but “crazy” because of the many logistical shoes that we ordered would have flimsy straps; the problems they encountered. embellishments would easily fall off or the heels snap “We had no system then,” says Jayjay, who admits that it after a few uses,” Jayjay enumerates. It took months was only around a year after Schu was launched that she and of communicating with their franchisor before product Ruby finally learned to be more systematic and organized. development came up to par, but even that successful Initial problems included lack of manpower—for the first six resolution required a sacrifice. “Initially, we wanted to months, the company’s personnel consisted only of Jayjay, sell our shoes at an average price of 799 a pair. But Ruby, Jayjay’s mom, and the one salesperson they hired to help we realized that if we wanted quality to improve, we man the store and service customers. “We had no time to hire had to invest more, so we ended up selling shoes at an or train more people because we rushed the opening of our average of 1,999 a pair. It’s still affordable, compared store, thinking we could save on rental fees,” she explains. to other imported brands, but not as low as we would’ve They also nearly had no merchandise to display on originally wanted,” Jayjay says. opening day! “We miscalculated the amount of time it JAN/FEB 2008 • GLOBE MASIGASIG • 23

BATANG NEGOSYANTE Jayjay and Ruby also sometimes found themselves questioning their instincts. “When we shopped for the shoes—personally going to Schu’s design center in Paris—we chose styles based on what we thought were nice,” she says. She adds while some of their choices were a hit with the market (such as the ballet ﬂats), she realized that there were certain styles which were not her cup of tea but were in-demand with the Pinay market. “Initially we, weren’t too hot on the open-toe slides, but turns out they’re very popular here,” she cites.

“Schu has become known for offering affordable alternatives to women who love expressing themselves through their footwear,” Jayjay explains. “When we ﬁrst opened, other brands only sold shoes in black or brown—everything was conventional. But Schu showcased shoes with intricate designs and in colors not normally used for footwear, like bright green or yellow. Our shoes make use of unconventional materials like scarves, shells, buttons, and embroidery. We once even brought in a pair where the design on the left

target demographics as Schu’s, Jayjay says she and Ruby were initially worried. “We cope by striving to remain true to Schu’s psychographic market—those who are more daring with their fashion. So we always make sure we have a wide range of stocks to cater to this market, from classic styles to party wear, but always with details and in vivid colors to set them apart from the other brand,” she explains. And Schu doesn’t just take care of its customers, it rewards them! Starting last October 2008, each Schu branch holds a

RIGHT: Last season’s must-have footwear: gladiator sandals BOTTOM: Little details turn these otherwise classic pumps into fashion statements

ABOVE: Eyecatching bags to match eyecatching shoes

RIGHT: Shoes in yummy colors to light up one’s feet

Schu showcased shoes with intricate designs and in colors not normally used for footwear, like bright green or eye-popping yellow. Jayjay and Ruby have since hired a third party to do market research for them on what the current Pinay’s lifestyle and needs are. They also rely heavily on the Internet, fashion shows, and magazines to update themselves on the latest trends. The partners also frequently hold Focus Group Discussions and visit their outlets to talk to customers. They put surveys on their website (www.schushop.multiply.com) and make sure to read the comments section to gain more insight into their customers. “It’s a good thing that nowadays, people are more outspoken and are not afraid to give feedback,” says Jayjay. “For example, we’ve come to learn that customers today would opt for style over comfort any day! Shoe-shopping is really not about needs anymore, but about taste and style preference,” she adds.

SOLE STATUS

All these improvements worked wonders for the business. Schu turned four years old last December, and from one tiny 32-square meter branch in Glorietta, they have now expanded to eight branches: Shangri-la Mall in 2004; SM Megamall and Robinsons Galleria in 2005; SM Mall of Asia in 2006; TriNoma and Ayala Center Cebu in 2007; and Powerplant Mall in 2008. 24 • JAN/FEB 2009 • GLOBE MASIGASIG

is different from the design on the right. It seemed like a crazy idea at first, but it turned out to be a fantastic move, because it made our shoes one-of-a-kind,” she says. All Schu shoes are imported from Singapore—but are designed in Paris and manufactured in China. “However, Ruby and I can suggest designs based on our observations of the Philippine market,” Jayjay points out. New collections are launched every month, and those that do not sell well are sent to the company’s factory outlet in V.A. Rufino Street in Makati City—the only such store of Schu’s in Asia—which the partners opened in January 2008. “We decided to put one up because we didn’t want to keep old stocks at our boutiques,” Jayjay explains. The store also allows them to unload old stocks and make a tidy profit at the same time. Jayjay proudly points out, “Shoes from past seasons all over the region are sold here, so outlet customers can actually see designs not available locally.” And the price is just right too—only 799 per pair.

KEEPING THE CUSTOMERS

When a well-known local retailer acquired the rights to an imported shoe brand with the same

monthly rafﬂe, where the winning customer is entitled to a free pair of shoes. Jayjay says they also have a loyalty program—also launched October last year—wherein every 5,000 single or accumulated purchase entitles one to a 500 gift certiﬁcate. “It’s still too early to tell the impact of these programs on our business, but we’re optimistic,” Jayjay shares. continued on p26

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TRIVIA

NIELSEN COMPANY REPORT

MORE AND MORE PEOPLE NOW SHOPPING ONLINE

f your retail store is experiencing a sales slump this year, maybe it’s time you started selling your products on the Web. According to a recent global survey conducted by The Nielsen Company, over 85 percent of the world’s online population has used the Internet to make a purchase, up 40 percent from two years ago. Even more encouraging—more than half of Internet users are regular online shoppers, making online purchases at least once a month. When The Nielsen Company conducted its first survey into online shopping habits two years ago, only 10 percent of the world’s online population (627 million) had made a purchase over the Internet. Within two years, this number has surged by approximately 40 percent — to a staggering 875 million. “The Internet is no longer a niche technology —it is mass media and an utterly integral part of modern life...As our lives become more fractured and cluttered, it isn’t surprising that consumers

turn to the unrivalled convenience of the Internet when it comes to...buying products,” said Jonathan Carson, President, International, Nielsen Online. OTHER FINDINGS FROM THE REPORT: Globally, the most popular and purchased items over the Internet are Books (41% purchased in the past three months), Clothing/ Accessories/Shoes (36%), Videos/DVDs/ Games (24%), Airline Tickets (24%) and Electronic Equipment (23%). In fact, the number of Internet consumers buying books over the Internet has increased seven percent in the past two years but the biggest increase has been in Clothing /Accessories/ Shoes which increased from 20 percent to 36 percent. “Some of the biggest buyers of books on the Internet are from developing countries— China, Brazil, Vietnam and Egypt—indicating massive growth potential for online retailers that can specifically target these fast-growing markets,” said Carson. ●

FAST FIGURES 1,568,000: Total gross leasable area of the all Ayala Malls (i.e. Glorietta, Greenbelt, Alabang Town Center, Ayala Center Cebu, Market Market, Bonifacio High Street, and TriNoMa), enough to ﬁt 3,700 basketball courts when combined.

4,200,000: Total gross leasable area of the SM Mall of Asia. That makes 10,000 basketball courts put together.

WORDS FROM THE WISE “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. 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, “Father of Philippine Retail”

ROUNDUP “My idea of a romantic Valentine’s Day date is...”

While the day of hearts spells a busy day for most businesses, these entrepreneurs know that spending it with their signiﬁcant other is also a good investment C O M P I L E D B Y A B B Y YAO JACQUELENE KAY LEE of

CELLO SANTOSTEMPLO of Cello’s Doughnuts & Dips I would like my husband, Jutes, to surprise me with a home-cooked meal, because I think a private meal would be more enjoyable than jostling for space in crowded restaurants. A dinner date at our favorite Italian restaurant can follow a day or two after all the Valentine hype!

Flatterbuy Accessories Basking on a beach at sunset with your special one while listening to your favorite reggae music, sipping fresh watermelon shake, and reminiscing the happy and funny memories you both shared.

AIRA FRANCO of Cintura by Alexandria My idea of a romantic Valentine’s Day date is joining the ﬁrst leg of [reality show] Amazing Race! Seriously, it’s the best way to get to know a guy. Imagine, the range of emotions—anger, frustration, extreme joy—which normally takes years to see can be seen in just the one month that we’re racing. Plus, it will be super fun traveling and exploring with my guy!

RICHARD SANZ of FoodAsia Corporation My idea of a romantic date is a long drive somewhere special, unfamiliar, and far from the city, where my wife and I can enjoy the night together without the distraction of work. The long drive alone to the unfamiliar is a sort of adventure and a bonding moment. The date place could be a simple eatery or an extravagant high-end restaurant; it doesn’t really matter. What matters are the moments together, and the memories created that both of us will remember in the years ahead.

RICHARD LICUP NG of Insurance Experts, Inc. Ideally, I would treat my wife to a romantic, candlelit dinner at a posh hotel. But since there’s an economic crisis this year, we will have to settle for a candlelit dinner at our home instead. JAN/FEB 2008 • GLOBE MASIGASIG • 25

LOCO OVER CHOCO

MAKING A DIFFERENCE

C ONTINUED FROM PAGE 14

On the other hand, the owners of Heavenly Chocolates hold free monthly chocolate appreciation workshops, wherein guests can learn about and taste the shop’s chocolate variants and have a complimentary cup of their choice. One main challenge experienced by both chocolatiers is to continuously create new products that are unique and satisfying. “Customers have grown more sophisticated and the industry must mature, as well,” says Rina. “We’ve spent about 100,000 on creating new products since we began, most of which usually goes towards acquiring raw materials.

C ONTINUED FROM PAGE 24

One product can take anywhere from two to four weeks to develop.” In addition, both establishments want to debunk a misconception that their products are bad for one’s health, saying that they use dark chocolates, which contain cancer-fighting antioxidants. This year, Café Xocolat wants to focus on its overseas expansion efforts, sharing that they have received franchise inquiries from Australia, Dubai, Vancouver, and even in the United States. Heavenly Chocolates, on the other hand, plans to continue growing its menu. “Filipinos have always had an appetite for chocolate—it was never a fad,” says Benjamin. “While the current economic crunch is very real, historical data shows chocolate is recession-proof. People still look for comfort food, and while some products may be seasonal to a certain extent, hot chocolate can be enjoyed all year round. In fact, the global demand for cacao has been growing an average of 10 percent a year.” ●

THE RIGHT CONNECTIONS

Jayjay says she and Ruby communicate with each other, with their stores, and with their customers, through the use of their Globe mobile phones. “Our marketing gimmicks are really done through e-mail blasts and texting. We don’t advertise, that’s not our way. We target specific customers, not the general public,” Jayjay says. They also rely on their website to communicate with their market faster and more effectively. “We have a blog in our Multiply site, were we announce the latest developments in our brand, store promotions, and tie-ups,” Jayjay explains. “We also make sure to post our latest styles and prices as soon as the products are launched so that when customers go to the branch, they already know what to buy.”

Customers may now also have their favorite Schushoes delivered right to their doorstep by ordering online and paying through bank deposits, although Jayjay says customers still prefer to physically go to the stores so they can try the shoes on themselves before making a purchase. “Our website gets many hits, but we have no way to track who among them subsequently go to the store to make a purchase,” Jayjay admits.

LOOKING AHEAD

Jayjay still has dreams of expanding Schu further, like open more branches, but she’s more cautious now, given the economic crisis and adding that the difficulty is compounded because she has to trade in foreign currencies. To cope, the company has cut operational costs, like spending less on ofﬁce supplies, and have employed austerity measures such as investing in energyefficient light bulbs. But as the new year opens, Jayjay chooses to remain hopeful. “We just have to work doubly hard to improve our designs and quality,” she says. ●

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