The Complete History of SM : How Henry Sy Became the Richest Man in the Philippines

Summary

The video script narrates the inspiring journey of Henry C, the founder of SM, the largest mall chain in the Philippines. Born in poverty in China, Henry's determination led him to the Philippines, where he started with a small shoe store and expanded to build the SM empire. The story details his challenges, innovations, and the strategic vision that transformed a simple shoe store into a retail giant with a diverse portfolio, including banks and real estate, culminating in his legacy as the richest man in the Philippines.

Takeaways

• 🏢 SM is the largest chain of malls in the Philippines and one of the country's biggest companies.
• 👣 Henry C, the founder of SM, started his journey from poverty in China to success in the Philippines.
• 🚢 At 12 years old, Henry C bravely traveled alone from China to the Philippines by sea to help his family.
• 🛍️ Henry's first business venture was selling cigarettes and scrap metal, which eventually led to the opening of his first shoe store.
• 📈 The growth of his shoe store led to the opening of the first SM store, marking the beginning of the SM empire.
• 👠 Henry C's business expanded rapidly, with innovative strategies such as fixed pricing and air-conditioned stores.
• 🏙️ SM City North EDSA, opened in 1985, was a groundbreaking super mall and a significant milestone for the company.
• 📊 SM went public in 1984, marking the start of its golden age with extensive expansion in the Philippines and overseas.
• 🏦 Henry C's business acumen also extended to banking, with SM later owning China Bank and BDO Unibank.
• 🌏 SM's expansion reached China, with the company building mega malls and becoming a dominant player in the retail industry.
• 💰 Despite his wealth, Henry C's success was built on hard work, determination, and overcoming significant challenges.

Q & A

Who is the founder of SM and what is the significance of his journey from China to the Philippines?

The founder of SM is Henry C. His journey from China to the Philippines is significant because it demonstrates his determination and courage at a young age. He traveled alone at the age of 12 to help his father with the family business, which was a challenging and dangerous endeavor at that time.

What was Henry C's initial business in the Philippines?

Henry C's initial business in the Philippines was selling cigarettes that he bought from American soldiers and then reselling them in Plaza Miranda. He also sold scrap metal and other items he could find.

How did Henry C's first shoe store come into existence?

Henry C's first shoe store came into existence after he teamed up with his grade school classmate, Lao Kang. They pooled their resources to import shoes from the US and started selling them from a small store in Cali Carrierdo.

What was the impact of World War II on Henry C's business?

World War II had a devastating impact on Henry C's business as his stores were completely destroyed during the Japanese invasion and occupation of the Philippines. However, after the war, he saw it as an opportunity to rebuild and started his business anew.

Who was Senen Mendiola and what role did he play in Henry C's business?

Senen Mendiola was an important figure who joined Henry C's business as his accountant. He accompanied Henry on walks around Escaler Street to learn about the competition and gather insights from shoppers and salespeople, which helped in the growth of their business.

What was the significance of the opening of SM City North EDSA in 1985?

The opening of SM City North EDSA in 1985 was significant because it was the biggest mall in the Philippines and one of the biggest in Asia at that time. It marked the beginning of SM's transformation into a one-stop shopping center and the start of their golden age.

How did Henry C's vision for SM evolve over time?

Henry C's vision for SM evolved from a small shoe store to a chain of 50 or more shoe stores, and eventually to a series of supermalls offering a wide range of products and services. His experiences in the US and Europe, where he observed the rise of malls and department stores, greatly influenced this vision.

What was the role of the family in the growth of SM?

The family played a crucial role in the growth of SM. Henry C's wife and children were involved in running the business, with the daughters manning the counters and the sons helping manage stocks. The entire family also had to share one car for transportation.

What major acquisition did Henry C make in the banking sector?

Henry C acquired Acme, a small bank with two branches, for 5 million pesos. This bank would later become BDO, the biggest bank in the Philippines in terms of assets.

How did Henry C's approach to customer experience contribute to the success of SM?

Henry C's approach to customer experience, which included fixed pricing, attractive sales staff, and an air-conditioned shopping environment, contributed to the success of SM by providing a comfortable and enjoyable shopping experience that attracted more customers and increased sales.

What was the significance of the slogan 'We've got it all' in the branding of SM?

The slogan 'We've got it all' was significant in the branding of SM as it conveyed the message that the mall offered a wide variety of products and services, catering to all the shopping needs of its customers. It was later changed to 'We've got it all for you' to make it more personal and customer-centric.