Inspiring Life and Success ni Henry Sy: TINDERO NG SIGARILYO NA NAGING BILYONARYO

Summary

Henry Sy's journey from a young boy with ten cents to the richest man in the Philippines is a testament to resilience and vision. Arriving in Manila in 1936, he learned discipline and entrepreneurship from his father. Despite war and setbacks, he built a retail empire, starting with a small shoe store and expanding to shopping malls like SM City. His focus on customer experience and innovation led to the SM Group's success. Sy's story is one of overcoming challenges, seizing opportunities, and leaving a legacy that inspires.

Takeaways

• 🧳 Henry Sy migrated to the Philippines at the age of 12 with only ten cents, highlighting his humble beginnings.
• 🏬 He started his entrepreneurial journey by selling cigarettes on a sidewalk, which eventually led to the establishment of the SM retail empire.
• 👨‍👩‍👧‍👦 Henry's family was deeply involved in the business from a young age, emphasizing the importance of family in his success.
• 🛍️ The introduction of the SM Department Store and the one-stop shopping concept revolutionized retail in the Philippines.
• 🏦 Henry's acquisition of Acme Savings Bank, which later became BDO, demonstrated his diversification into the financial sector.
• 🌏 His vision for expanding into China, where he was born, led to the successful establishment of SM malls in Xiamen and other cities.
• 🏙️ The development of SM City, the first of its kind in the Philippines, showcased Henry's foresight in identifying undervalued locations for commercial success.
• 🏢 The SM Mall of Asia, despite skepticism, became a major tourist destination and a testament to Henry's ability to realize ambitious projects.
• 💼 Henry's focus on customer experience, such as hiring well-trained sales staff and providing air-conditioned stores, contributed to the success of his businesses.
• 💰 As of 2018, Henry Sy was the richest man in the Philippines with a net worth of 20 billion US dollars, according to Forbes.

Q & A

What was Henry Sy's initial journey to the Philippines like?

Henry Sy left Xiamen, China for the Philippines at the age of twelve, following his father to Manila. He could not speak English or Tagalog and had only ten cents with him, half of which he spent on bread, causing him to fall ill due to the butter in it.

How did Henry Sy's early life in the Philippines shape his work ethic and business acumen?

Henry's early life in the Philippines was marked by hardship and poverty. His father's small store, which also served as their home, taught him the importance of discipline, diligence, and good credit standing, shaping his work ethic and business acumen.

What significant event in Henry Sy's life was the bombing of Pearl Harbor in 1941?

By 1941, when the Japanese bombed Pearl Harbor, Henry and his father had established two stores, which were spared from looting unlike many others during the chaos of the time.

How did Henry Sy's business ventures evolve after World War II?

Post-war, Henry saved several hundred pesos and started selling cigarettes on a sidewalk. He later rented a space in Calle Carriedo and ventured into the shoe trade with his friend Lao Kang, eventually opening the Plaza Shoe Store and Park Avenue Store.

What was the turning point for Henry Sy's business when he decided to diversify?

The turning point in Henry Sy's business came when he decided to diversify beyond shoes, adding clothes and accessories, and re-branding ShoeMart into the SM Department Store, introducing a one-stop shopping concept.

How did Henry Sy's vision for SM City overcome initial skepticism and challenges?

Henry Sy's vision for SM City faced skepticism due to the economic stagnation and political instability in the Philippines at the time. Despite concerns, he built SM City in a then-swampland area at the EDSA junction, which later became a retail hot spot.

What was the impact of the SM Department Store's introduction of the SM Card?

The introduction of the SM Card, which served as a credit card, significantly boosted sales at SM Makati, demonstrating Henry Sy's innovative approach to retail and customer convenience.

How did Henry Sy's business strategy adapt to the changing retail landscape?

Henry Sy's business strategy adapted by introducing new retail concepts such as the SM Department Store, which offered a wide range of products and services, and by expanding into shopping malls, which became a major destination for commuters and tourists.

What was Henry Sy's approach to business expansion, particularly in terms of geographical diversification?

Henry Sy's approach to business expansion included geographical diversification, as evidenced by his decision to open SM malls in China, where he was born, and his vision to build in Fujian province, which he saw as a center for growth.

What legacy did Henry Sy leave behind in terms of business and personal values?

Henry Sy left a legacy of hard work, discipline, and a strong sense of family in business. He instilled in his children the importance of contributing to the family business from a young age, and his success story serves as an inspiration for many.

Outlines

00:00

📚 Early Life and Entrepreneurial Beginnings

Henry Sy's journey from China to the Philippines at the age of twelve marked the beginning of his life as an entrepreneur. With limited language skills and financial resources, he quickly learned the values of discipline and hard work from his father. Despite the challenges of the war and the destruction it brought to his early businesses, Henry's determination led him to establish a successful retail business. His strategic partnerships, innovative ideas, and focus on customer service laid the foundation for the SM brand.

05:00

🛍️ Expansion and Retail Innovation

Henry Sy's vision for retail expansion in the Philippines led to the creation of ShoeMart, which later evolved into the SM Department Store. His keen interest in providing exceptional customer experiences, including air-conditioned stores and well-trained staff, set his businesses apart. The strategic move into Makati and the introduction of the one-stop shopping concept further solidified SM's position in the retail industry. Despite skepticism, Henry's ventures into new commercial areas and the introduction of the SM Card were instrumental in the company's growth.

10:03

🏢 The Rise of SM City and Megamall

Henry Sy's ambitious plan to build a multi-level shopping mall, SM City, during a period of economic and political uncertainty in the Philippines, demonstrated his resilience and foresight. The success of SM City and the subsequent opening of Megamall, the largest mall in Asia at the time, showcased his ability to turn challenges into opportunities. His ventures into China and the listing of SM on the stock market further expanded the company's reach and solidified its financial strength.

15:03

🌏 Global Vision and Legacy

Henry Sy's global vision extended beyond the Philippines, with the establishment of SM malls in China. His commitment to family values and the early involvement of his children in the business ensured a strong legacy. The SM Mall of Asia, despite initial skepticism, became a testament to his entrepreneurial spirit. Henry's life story, from a young immigrant to the richest man in the Philippines, serves as an inspiration, emphasizing the limitless potential of hard work and determination.

Keywords

💡Entrepreneurship

Entrepreneurship refers to the process of designing, launching, and running a new business, which typically starts as a small business, such as Henry Sy's father's store, and can grow into a larger one. In the video, it is a central theme as it traces Henry Sy's journey from a young boy with little to his name to the founder of a business empire. His entrepreneurship is exemplified by his early ventures with a cart and bicycle to import goods, and later by establishing the SM brand.

💡Diligence

Diligence is the quality of being hardworking, careful, and thorough. It is a key concept in the video as it is one of the values Henry Sy learned from his father, which he applied throughout his life. The video mentions that Henry's father walked barefoot to buy items, and Henry himself was diligent in his studies and business, which contributed to his success.

💡Discipline

Discipline is the practice of training oneself to follow rules or a code of behavior, often to achieve a personal or collective goal. In the video, Henry Sy's discipline is evident in his approach to business, such as his methodical expansion of the SM brand and his commitment to education, even studying at FEU for a commerce course despite his busy schedule.

💡Innovation

Innovation is the introduction of new ideas, products, or methods. The video highlights Henry Sy's innovative spirit, particularly in his decision to diversify the inventory of his stores and introduce the one-stop shopping concept with the SM Department Store, which was a new retail concept in the Philippines at the time.

💡Retail

Retail refers to the sale of goods to the public in relatively small quantities for use or consumption rather than for resale. The video is centered around the retail business, detailing how Henry Sy transformed a small store into a retail giant with multiple shopping malls and department stores across the Philippines and China.

💡Credit Standing

Credit standing refers to an individual's or business's reputation for fulfilling financial obligations, which can affect their ability to borrow money or receive credit. In the video, Henry Sy learned the importance of good credit standing from his father, which likely played a role in his ability to secure funding and partnerships for his business ventures.

💡Expansion

Expansion refers to the act of increasing the size, scope, or range of something, often in the context of business growth. The video details Henry Sy's strategic expansion of his business, from opening new stores to building shopping malls like SM City and SM Mall of Asia, which contributed to his becoming a retail tycoon.

💡Economic Stagnation

Economic stagnation is a period of little or no economic growth, often characterized by high unemployment and low business activity. The video mentions the economic stagnation in the Philippines during the late 1970s and early 1980s, which Henry Sy navigated by continuing to invest in his business, demonstrating resilience and foresight.

💡Investment

Investment refers to the allocation of resources with the expectation of a future financial return. In the video, Henry Sy's investments in real estate and retail businesses, such as the acquisition of land for new malls and the establishment of the SM brand, are highlighted as key factors in his success.

💡Malls

Malls are large enclosed shopping areas that house various individual retail stores. The video discusses the evolution of Henry Sy's malls, from the initial SM Department Store to the massive SM City and SM Mall of Asia, which became not only shopping destinations but also cultural and social hubs.

💡Philanthropy

Philanthropy is the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes. While not explicitly mentioned in the script, the video's theme of success and wealth accumulation by Henry Sy implies a responsibility to give back to society, which is a common aspect of many entrepreneurs' legacies.

Highlights

Henry Sy migrated to the Philippines at the age of twelve with only ten cents.

He faced language barriers as he couldn't speak English or Tagalog initially.

Sy's first entrepreneurial steps included buying a cart at the age of 17.

During World War II, Sy's businesses were spared from looting unlike others.

Sy's first car was a second-hand Chrysler, which he later sold to buy a new model.

Sy partnered with Lao Kang to establish the Plaza Shoe Store.

Sy's business philosophy emphasized discipline, diligence, and good credit standing.

The Paris Shoe Store and Park Avenue Store were significant early ventures.

Sy's marriage to Felicidad in 1950 was a personal milestone.

Sy's vision for retail included studying shopping centers in the US.

The introduction of the ShoeMart Card was an innovative retail concept.

SM Department Store rebranded from ShoeMart, targeting the middle class.

SM City, the first of its kind in the Philippines, was a groundbreaking project.

Despite skepticism, SM City became a retail hot spot in Metro Manila.

Sy's expansion into China with SM City Xiamen marked a significant international step.

SM Mall of Asia, despite doubts, became a major tourist destination.

Sy's emphasis on family values and hard work was a cornerstone of his business philosophy.

Henry Sy's net worth reached 20 billion US dollars, making him the richest man in the Philippines.

Sy's legacy includes an enduring impact on Philippine retail and real estate.

Transcripts

Henry Sy left Xiamen, China in 1936 to go to the Philippines

to follow his father in Manila.

He was only twelve years old and could not speak English or Tagalog.

He had ten cents on his journey by boat.

He used half of his money to buy bread.

He became ill because of the butter in the bread.

He travelled with a kid who was lucky to find and pick up twenty pesos on the ship deck.

After the processing at the Bureau of Immigration on Engineer Island in Manila Bay,

he walked to Quiapo to look for the store

of his father at Calle Echague (Carlos Palanca Sr today).

Henry wept when he saw his father's condition.

Henry expressed a desire for a better life.

His father's store did not exceed 2 square meters.

The table on which the products are laid was also the bed at night.

Every morning, his dad would buy items from Divisoria.

His dad would just walk barefoot from his store.

Henry saw and learned from his father

the importance of discipline, diligence, and good credit standing.

Henry enrolled at the Anglo-Chinese School in Quiapo.

There, he met Lao Kang and became his friend.

Wanting to finish immediately, he asked his teacher

what needs to be done to speed up completion of his elementary schooling.

He was advised to reach the grade of 90.

He finished grade school for five years as a Valedictorian.

By 1941, the Japanese had bombed Pearl Harbor in Hawaii.

At that time, Henry and his father had two stores.

They were not like the others whose goods/merchandise were stolen.

At the age of 17, Henry bought a cart.

He hired an operator for the cart and this had helped

him so he could buy a new bicycle from a Japanese.

He used the bicycle to import goods from Divisoria.

He also became close to Felicidad Tan.

On February 3, 1945, American troops invaded Manila.

Manila had become a war zone. Felicidad saw Henry who seemed to walk lame.

Henry was wounded by a sharpnel in the bombing of Ayala bridge.

Henry and his father temporarily went to Novaliches.

When they returned to Manila, they discovered that one of their stores had been damaged.

The second one was robbed.

Henry's father was discouraged. He decided to return to China.

After the war, Henry was able to save several hundred.

He chose a sidewalk at the Plaza Miranda to sell cigarettes.

He would buy some boxes of cigarettes from American soldiers.

He earned a peso for every package of cigarette sold.

Henry talked to Don Vicente Rufino to rent a space in Calle Carriedo.

As usual, the leased office served as a morning shop

and sleeping space at night.

Shortly after, someone who was importing shoes from the US, talked to Henry.

Henry and Lao Kang brought their savings together to buy

a wagon to be used in the shoe trade. Business had been good.

Henry bought his first car,

a second hand Chrysler worth a thousand pesos.

He also sold it soon and bought a new model.

Due to the growth of the business, Henry added a leased space from Don Rufino.

He partnered with Lao Kang and his brother to build the Plaza Shoe Store.

In 1949, Senen Mendiola became Henry's accountant and assistant.

Together, they visited the shops at Escolta Street to learn about retailing.

They talked to shoppers and sales ladies.

Henry and Lao Kang set up their own shoe store called the Paris Shoe Store in 1948.

This was followed by a larger store they called Park Avenue Store.

On March 30, 1950, Henry married Felicidad.

They were married in San Miguel Church. The reception was held at the Manila Hotel.

Henry Sy and Lao Kang's businesses were growing.

They bought the Globe Drug Store and Soda Fountain from the Sison family.

At the age of 28, Henry began studying at FEU for a commerce course.

Because of the two stores, Henry stopped his course.

He just completed a two-year Associate in Commercial Science.

In 1954, Henry and Lao Kang agreed to split their established businesses.

Henry got the Park Avenue and Soda Fountain.

In the year 1955, Henry traveled to New York, USA to get more shoe suppliers.

He stayed in New York and Boston for three months to find

and talk to shoe dealers.

He also studied the operation of shopping centers.

He took pictures of displays, lobbies, and facades for his reference.

Henry had always been clear about his intentions to

build a chain of 50 or more shoe stores.

Henry continued his journey through the years until the 1960s

to see trends in fashion, operation, and retailing.

In 1958, the Tiger Bazaar store

from his partnership with Francisco Chong was named Shoemart.

The store boomed. They established a second store at Carriedo Street.

The secret to ShoeMart stores' success was Henry's interest

to provide customers with the best experience possible.

He hired good salesladies.

They were well dressed and trained as stewardess.

He also made the store airconditioned.

At the time, there were only a few airconditioned stores.

With the success of both ShoeMart and Park Avenue, he saw the potential of Makati.

Manila was congested at the time.

Stores were rare in Makati.

He mentioned to Francisco Chong his idea of ​​opening a ShoeMart in Makati.

Francisco did not consent. They agreed to dissolve the partnership.

Henry got the store in Carriedo and the rights to the brand ShoeMart.

The ShoeMart on Rizal Avenue was renamed Shoe World.

In 1961, Henry joined the Apex Investment Group.

He met with lawyer Ishmael Estrella who would serve as his legal counsel for a long time.

The following year, Henry's family moved to North Forbes Park.

1963 when ShoeMart, Makati opened.

Many congratulated him including his suppliers from Marikina.

Other visitors believed however that he will not profit in Makati.

But Henry was confident in his decision.

ShoeMart Makati has been a family-driven business.

After class, the daughters would handle the cash registers.

The sons would work in the stock room.

They came home late at night because they had only one car.

ShoeMart Makati did not immediately boom.

But Henry knew that development was on its way to Makati.

He built buildings on rented commercial lots.

Automatic Center, Alemar's Book Store, Dulcinea Pastry Shop,

and Joanne Drew Slimming Salon became his first tenants.

Many more began renting at the so-called Makati Commercial Center.

Henry continues to expand the area.

More than a decade later, Makati has become a shopping destination

and financial capital of Metro Manila.

Henry continued to grow.

He introduced the ShoeMart Card and other new retail concepts.

The ShoeMart card served as a credit card in those days.

With the help of ShoeMart card, ShoeMart Makati's sales have grown significantly.

Between the late 1960s and 1970s, other commercial areas began to emerge

in Geenhills, Ortigas, and Araneta, Cubao.

In 1967, Shoemart Cubao opened.

The Manila Royal Hotel also opened in 1969 in Echague.

One day, sales amounted to PhP140,000.00.

SM Cubao was also doing well.

From Henry's point of view, it was time to expand.

According to Henry, they would not grow if they will sell shoes only.

He decided to diversify the inventory.

He added clothes and accessories.

He used as model the malls that he had visited in the US in the past

such as Macy's, Bloomingdales, and Saks.

Contrary to the target markets of such malls, Henry targeted the middle class.

Henry did a re-branding.

ShoeMart became the SM Department Store or SM.

SM Makati became SM's flagship store.

The one -stop shopping concept was introduced that provides convenience to shoppers.

More goods were sold which include shoes, clothes,

makeup, toys, gifts, electrical appliances, and more.

A Foreign Exchange counter was added plus a Flipiniana sector to cater to the growing number of tourists.

More and more people were coming to SM Makati.

At that time, this store had the biggest revenue.

In 1975, Henry bought the Acme Savings Bank

which had two branches for five million pesos.

Said bank is known as BDO, the largest bank today.

SM Cubao opened on October 17, 1980.

Over the next year, Henry's ambition was to build a shopping mall.

He would build a multi-level building with retail spaces

rented to over 100 business owners

under one roof.

Henry called it SM City.

At that period, no such project was ever done in the country.

Henry had since seen the potential of the location in

EDSA junction and North Avenue in Quezon City.

Henry saw the place as a last shopping destination before beginning a trip to the north.

At the time, no one noticed the spot that Henry had chosen because the area was swampland.

Many were concerned about Henry's vision for SM City.

They feared this would be Henry Sy's downfall.

Included in the doubts about whether Henry's plan would be successful was the Philippines' situation then.

The late 1970s and early 1980s were periods of economic stagnation and political instability in the Philippines.

Although Martial Law was abolished in 1981, Ninoy Aquino was shot in 1983.

The economy was devastated.

Investors were skeptical and leaving the country.

Despite the country's problems,

five buildings were built simultaneously by Henry.

These included SM City North Edsa, SM Harrison, SM Annex Makati, Magallanes de Galleria, and Ritz Tower.

Many said these projects would be Henry Sy's "waterloo."

1984 when the SM Department Store opened in Harrison Plaza.

SM City opened in November, 1985.

Early on, Henry had difficulty getting tenants.

The Philippine economy was scary then.

The strategy was to just open a department store and a few tenants' shops.

Although slow at first, it was also an instant success.

In the long run, many business owners and restaurant owners arrived at SM City.

SM City has become Metro Manila's retail hot spot.

Shops and eateries continued to open in SM City.

The existence of eight theaters, the setting up of retail shops such as the appliance center

where a customer can see the many brands of choice, and other features of SM City

continued to attract more buyers.

Henry's vision was realized that the mall would become a major destination for commuters

from Pasay, Makati, Pasig, Quezon City, and the neighboring provinces of Bulacan and Pampanga.

SM North became Henry Sy's largest mall.

Although there were malls located near SM City, it has continued to grow.

At the moment, the SM North is composed of five buildings.

Megamall opened on June 28, 1991.

It was the largest mall in Asia at the time.

Just as when SM City opened, Henry faced it

the political uncertainties and disasters that occurred during that period.

There was a strong earthquake in the Philippines in 1990.

This was followed by the eruption of Mt. Pinatubo.

Due to the power crisis, brown-out became consistently prevalent.

Indirectly, they helped Megamall grow.

Many would go to the mall because of its airconditioned interiors.

Malling has emerged as a recreational activity for Filipinos.

About 200,000 to 300,000 visited the mall

daily to entertain themselves.

In June 1994, the SM Group conducted Initial Public Offering.

They raised PhP4.7 billion pesos.

The proceeds were used in the construction of SM malls

in Cebu, Las Pinas, Bacoor, Fairview, and Iloilo for the next five years.

As Henry's businesses continued to grow,

he also saw the potential of Fujian province in China where he was born.

By the early 1990s, Henry had already shown to his children his plan

to bring SM to China. As was the case in North Edsa,

his children have yet to see the potential of SM to be built in Fujian.

Using the map, Henry showed them his imagined location

surrounded by Xiamen City, Jinjiang City, and Szechuan City.

Henry had seen that over ten years when the three cities grew,

he saw the place as the center.

In the mid-1990s, Henry went to China to buy land.

On December, 13, 2001 SM City Xiamen opened.

To date, there are now seven SM malls in China.

In the first half of 2000, the SM group began building the SM Mall of Asia.

As with the earlier malls, there was also skepticism on

Henry's decision on the project.

The Philippines had not recovered much from the Asian financial crisis

which caused a significant collapse of the GNP.

Billions of dollars would also be needed for the construction of the Mall of Asia.

The Mall of Asia opened on May 21, 2006.

On the first day of operation, over one million people went to see the latest mall.

Since then, the MOA has become a tourist destination as Henry Sy has seen.

The Sy neighbors in Forbes Park are the families of Joey Concepcion and Greggy Araneta.

The big difference between the Sy children compared to their friends

is their working at their store

in their free time even when they were in elementary school.

Helping the business was planted early on to the Sy children.

In the words of Teresita: "For us, sense of family is very important.

From the time, when we we'ere growing up, we always had to do things together,

as a family, and earn together. As a family. It was not an individual thing. "

In the Sys household, the needs of the family and their businesses

is more significant than personal needs.

Henry always told the children they could understand too

someday why at a young age,

they needed to help in the family business.

When the Sy children finished school,

it became clear to them ever since that

their father had been training them to build his team.

Above all, Henry wanted his children to be his duplicates.

In 2018, SM celebrated its 60th anniversary.

Henry Sy reminisced on his life,

“As I move on in this life and work on more dreams, I realized something

—There is no limit to what we can do. God is good and generous with His gifts to us.

He gives us many opportunities and equal time everyday.

It is up to us to make full use of them.

I encourage you to have your own dream and work to make it a reality.

You are young with the future before you.

Remember the young boy who arrived in Manila many years ago, a stranger with nothing to his name…

If I can do it, the young people of today can do it too. ”

Based on the 2018 Forbes World's Billionaires List,

Henry Sy has an estimated net worth of 20 billion US dollars.

He is the richest man in the Philippines.

He was 52 worldwide.

He is even richer than Donald Trump with a net worth of 3.1 billion US dollars.

Henry Sy passed away on January 19, 2019.

Henry Sy's life is a source of abundant lessons and inspiration.

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