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WHAT'S INSIDE Talking heads

JanSport President Steve Munn on marketing strategies and the secrets of his success.

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INDUSTRY Medical travel: The next big thing

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PROFILESCOMPANIESGLOBAL EDGE
mb.businessagenda@gmail.com

BUSINESS AGENDA

Filipino competence and innate hospitality, and a growing gap between supply and demand in healthcare systems abroad, contribute to making the Philippines a preferred medical destination for more than just cosmetic procedures.

C-1 Monday, March 29, 2010

Section Editor: GINA ABUYUAN

Photograph by WAWI NAvARRozA

Extra value through design

Shoe, jewelry and casket designer Brian Tenorio reveals how he successfully marries creativity with business savvy

By MARBEE SHINg-go

But the setbacks in establishing his business didnt stem from his unorthodox marketing methods, but from politicking inside the shoe industry. I faced a lot of intriga in the shoe industry when I was starting, he says. I was very new and I already joined one of the first few trade shows. The government and other funders spent I was coming from not for 10 companies. It was my first time as a designer, having anything to lose, and as an entrepreneur, to and once you come from experience some form of that place where you have politicking and maybe corruption, not in government, nothing to be afraid of, you but with the leadership of that federation.

he driving force behind Tenorium Inc., Brian Tenorio has made go ing beyond borders and thinking outside the box his lifestyle. The Fil-Am's long list of achievements include topping the Filipino Harvard-alumni-sponsored Battle of the Business Plan competition, and reaching the semi-finalist level at the Harvard Business School 2005 Entepreneurial Idol, while also being one of the winners of the 2007 Dutch Business in Development Challenge, and the 2006 Junior Chamber International Creative Young Entepreneur awards. Branching out from shoes, he now also designs jewelry and caskets (yes, you heard it right; Tenorio is the first to venture into designer caskets).

and decision makingeverything you need to become a designer who can manage a firm. go for it, no fear Before Tenorio hit it big, however, he literally sold his wares on his knees. During his shoe soirees, made popular via e-mail blasts among avid shoe shoppers in Metro Manila, Tenorio did the fittings himself. He was also one of the first who sold his merchandise online.

can try things that have never been done before.

He describes his current experience in design management course in Pratt Institute in New York as a humbling experience, though he nevertheless has reaped more insight on how to run his company. Design management is [just] a 15-year-old program, he says, but I think its one of the best in the whole world because of the techniqueits not just about the technical design skills. We dont have classes about rendering, fabric or soles. Its about negotiations, international relations, finance, accounting and principles, business law

The other thing was about the trickiness of business partnerships. Id like to stress this though: its not always your fault if youre not doing well with a business partner. It might be because things are going at a different pace, or because you look at things differently. I also realized that Filipinos could be very effective bosses, but maybe not so good at partnerships.

Hurdling those setbacks, Tenorio continued to move forward. Tenorium, Inc. (the company that handles his shoe, casket, and jewelry lines)s business
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BUSINESS RoUND-UP
88DB.com positioned as mega-site of all shopping and networking activities

Business Agenda
Extra value...
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Monday, March 29, 2010

88DB.coms recent redesign positions itself as the first rich media service mega-site by creating dozens of vibrant interactive communities out of its 28 product and service categories that include travel, business, wellness and weddings. Each is given its own distinct identity by way of a unique theme and by highlighting important services related to the field so users wont have difficulty looking for the information they need. Also in the pipeline is an SMS facility that will allow customers to contact sellers on their mobile phones via a Send an SMS button found on the site. We are also eyeing the possibility of opening more payment gateways to support customerseller transactions, says Lyndon Jocson, business development manager of 88DB Philippines. With these new site features and look, 88DB.com makes advertising colorful and interactive, and is becoming a better venue for buyers and sellers to meet.

model is very interesting because I was coming from not having anything to lose, and once you come from that place where you have nothing to be afraid of, you can try things that have never been done before. At some point, that became our philosophy on how we did thingsIts never been done, we shall try it then. Go for it, no fear. If people talk about it, thats great, if not, its fine. And so far, it worked very well for us.

is Apple. Apples design qualities are very intact. Wikipedia is also a good example with regard to the way its maintained itself as a true organization. There are other things that you could also identify and develop, he adds, And once you have done that, youll have an advantage. Youll reap the full benefits of those advantages when you No. 1, reduce cost; no. 2, maximize profit; no. 3, meet the practical needs of your staff, he explains. [Meeting] their practical needs is

scents I want to make [revolves around a concept I call] Adobo, which is a very nice, savory, human scent. The business model behind that will bring extra value through design, and with that I dont just mean beautifying the product, but improving the quality and the marketing. The Next Step For the next decade, Tenorio believes, Filipino designers should focus on making the country more relevant in the design field. You dont want to be known [as a country] because of a few people like Manny Pacquiao and Corazon Aquino. Not that its bad, but theres nothing very visible, or at least, visibly acknowledged in the Western world about us. Sometimes I feel like Nepal even has a more exotic feel to it than the Philippines, and will probably have more tourists than Manila. So I think the goal is how to be more relevant. I also think our major strength isand I shall quote Lisa Lampanelli, which might be weird because shes a comedianthat Filipinos are the Swiss Army knives of minorities. Its true because we can be in an area with black people, and be like the blacks too; when with the Chinese, even if were not fully Chinese, we eat pansit, noodles, etc. In my class, for example, which is very multinational, I am probably one of the best presenters because my accent is adaptable, very understandable. I think its something we can rely on. To achieve this goal, he suggests, Filipino designers and artisans need to be clear on their priorities. I think in the Philippines, we can make anything we want. There just needs to be some understanding of what is important and what the priorities are. This is another clich, but also its probably trueif you dont understand how you are, what youre good at, and who you will be to everyone else, then there will be no understanding.

Redpages.ph, an online directory that delivers results

Dennis Ng, CEO of Creative OnlineMedia, Inc., saw an opportunity in the services sector by providing a platform for doing business on the Internet through redpages.ph. Now the countrys fastest growing online business directory, redpages.ph has over 17,300 Philippine businesses listed across 32 major industry categories. The online portal offers free accounts, allowing listed businesses to upload up to five products, photos and a company profile, as well as the option to upgrade the account into a P8,888-annual premium membership whose benefits include premium web templates and unlimited product postings. Premium businesses are subject to an annual verification procedure by Dun & Bradstreet, a US-based company that provides international and US business credit information and reports, to ensure that all the listed companies are legitimate and trustworthy. Redpages.ph also engages in SEO technology, which results in eight out of 10 companies listed in the portal getting top search results on Google.

With Only Superlatives as his motto in Tenorium, hes made an active decision to manufacture on I think creative home ground in Marikina, an endeavor that many have tried but assets are not just few have succeeded at, what with cheaper sourcing from China, and about the trademark, the Filipinos love for imported the fashion, or and branded stuff. Tenorio admits the designs of the it wasnt the easiest decision to makebut one thats paid off organization, but also quite well. Initially, it was good, but after a while, with the budget, I thought, oh my gosh, napasubo ako. I had to follow through because I had people depending on me for their work, for their employment. So the only thing to do was to improve the craft. This has resulted in footwear that can go, no pun intended, toe-to-toe with more renowned brands. That was one thing that made me feel really good. Plus the fact that my employees have been fiercely loyalmany people have tried to pirate them, but theyve stuck with me. Expanding Industries With his background, its not surprising how much faith Tenorio has in the creative assets of an organization. Its about identifying and allocating them, he says. I think creative assets are not just about the trademark, the fashion, or the designs of the organization, but also how it does things, the way it thinks. A good example of a company with a creative asset

how it does things, the way it thinks.

important because you create happiness in an organization. It becomes more sustainable for the future. And the concerns become more about the people. The bottom line is: people, planet and profit. Now, Tenoriums business model has not only expanded over different industriesshoes, jewelry, caskets but is looking for industries that are already good at what they do, and injecting more designs, for them to become more competitive. I think the Philippines has that, except that we dont know how to maneuver and manage our industries. And what new industries does Tenorio have his eye on now? Im excited about a furniture and perfume line, he replies. He already has a name for the latter: Adobo. One of my dreams this year is to have a perfume line. Among the

5th Pinay In Action run held for financial empowerment

Last March 13, 2009, health buffs gathered at the bay area of SM Mall of Asia to participate in the 5th Pinay In Action All-Women Run, an annual tradition started by Sen. Pia Cayetano in 2005. A staunch advocate of womens rights, Sen. Cayetano created the race with the mission to uplift the lives of the Filipina. The event not only provided a venue for starting healthier lifestyles, it also served as a hub for women entrepreneurs to promote their products and services. Financial empowerment is very important, said Sen. Cayetano. If you look at women in abusive relationships, one of the main reasons why they cannot leave is because of their finances. And one mode of independence is really entrepreneurship. A lot of women may not have the education but if you hone their entrepreneurial skills, it gives them financial income. Among the expos activities were a photo exhibit, a breast cancer awareness clinic, and a booth that featured livelihood projects by Benguet women.

'My Speedo' campaign set to drive Speedo company growth in 2010

Following the recent launch of its Spring/Summer 2010 Collection, Speedo Philippines announced that its comprehensive My Speedo campaign is in full swing. Apart from introducing the campaign to both advertising and retail establishments, the company recently opened its 17th concept store at Marquee Mall in Pampanga and is in the process of renovating its existing stores to keep it concurrent with the companys new global theme. 2009 was a good year for Speedo despite the challenges presented by the last quarter of the year, said Manish Mahtani, Speedos VP for Operations. Although revenues were affected late 2009, we had healthy growth in the first three quarters. We ended the year with a satisfactory 10 percent increase compared to 2008. This year, we are forecasting 6% growth and we hope to maintain our companys profitability. Tenorio's superb craftsmanship makes his products veritable works of art.

BRIANS BEST-IDEA BookS

A socially responsible way to promote your brand

Myfreegas.com, in partnership with Rapide Auto Shop and Caltex Philippines, introduces a costefficient way for companies to promote their brands. Heres how it works: At the beginning of a month in any Rapide station, Myfreegas. com installs a tamper-proof sticker on the rear windshield of any car an advertiser chooses to sponsor from Myfreegas.coms transportation database. The database, which filters information such as the gender, occupation and specific routes ran by the car owner, enables the advertiser to choose a specific car owner demographic aligned with its target. Upon sticker installation, car owners are required to run at least 300 kilometers every month in exchange for P1,000 worth of Caltex gas coupons. Coupon distribution is administered at the end of every month at any Rapide station, where the car owners sticker status and mileage qualification will be checked. It is only when the driver qualifies that he/ she will receive the gas coupon. To guarantee transparency, Myfreegas. com enables its advertisers to check the status of all cars running under its ad campaign via a 24/7 web-based monitoring system. For more information, visit www.myfreegas.com.ph.

The Post-American World by Fareed Zakaria, which is about how the world was after American domination in the last few decades. Hes an Indian who grew up both in India and in the States, went to Harvard, then wrote a book.

The Laws of Simplicity by David Maeda. In the book he said something like, If you want to simplify the product you apply S.H.E., you Shrink, you Hide and you Embody. If you want to improve the product and simplify, you can make it even smaller, you can hide the details about it, or you can embody to infuse meanings.

Malcolm Gladwells Blink, whose main subject is "thinslicing": our ability to gauge what is really important from a very narrow period of experience. In what Gladwell contends is an age of information overload, he finds that experts often make better decisions with snap judgments than they do with volumes of analysis.

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Business Agenda

Monday, March 29, 2010

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JanSport President Steve Munn

Interview by EM P. gUEvARA

TAlkINg HEADS

California-based JanSport President Steve Munn visited the country early this month to check on company performance and push its initiatives for 2010. As president, Munn is responsible for growing the JanSport business, known for its backpacks, luggage and collegiate apparel. Before joining JanSport in September 2007, he served in senior management positions with VF Corporations Vans brand, and with Reebok and Pepsi. Munn has extensive experience in brand building, strategic planning, and new business development. Business Agenda cornered the busy executive for a quick, informative tete-a-tete. BA: Identify three secrets of your success. SM: I will answer in terms of JanSports success. One, its outdoor heritage. Two, its outdoor authenticity. And three, that it is part of contemporary youth culture. We design bags for outdoor function, but which appeal to contemporary youth culture. Its what makes JanSport a more interesting brandthe outdoor function and design combined. BA: Whats the best marketing advice you can give? SM: Always keep your mind on the consumer and how they relate to your product. Be very conscious of what they think and make it consistent with what your brand stands for. Immerse yourself in youth (your markets) culture. Todays consumer is very savvy. In the Philippines, JanSport itself is involved in less events but we are more organically involved. BA: Describe your management style. SM: I hope to build consistency in brand direction. To align the brand strategy in providing what the local market needs. BA: How would you describe the Philippine market? SM: The Philippines is one of our better markets in terms of size and development. A third of those in college or university here have a JanSport backpack. We have done a good job of developing ownership of the market. BA: What does the JanSport brand stand for for Filipinos? SM: JanSport is about the experience of youth and self-expression. Its about color, design and authenticity. Here, this means tapping school organizations, getting involved in exhibits, fashion shows and parties B A : How would you compare the Philippines to other Asian markets? SM: Japan would be the most trendy it tends to be a leader of trends in Asia, like New York or L.A. in the U.S. The Philippines is a good market, it has a good shopping base. It ranks third in sales for JanSport in Asia, the top two being China and Japan. Asia is the fastest growing region for us. BA: Tell us something about the man behind the executive. SM: I grew up in the outdoors. I grew up close to the brand. These make JanSport a fun place for me to work. And because its fun, it works.

CAf BIz EvANgElINE NAvARRo

Growing the Small Business

hat sustains small business today? While waiting to board my plane to Cebu for a talk, I browsed business magazines, some of which were littered with new flashy acronyms that left me dyslexic. So I chatted with business people on the trip to get an additional grip on their concerns and I went away with the feeling that the more things change, the more things remain the same. A major concern for most businesses was ramping operations to the next level. What shapes growth for small entrepreneurs in real life? What will sustain it? Intent on getting to the wisdom provided by experience, I chatted with Dita Patawaranhands-on partner and co-pilot of Hillcrest Builders, a construction finishing materials store chain carved with spouse, Ruben, from the ground up over a span of 30 yearson her lessons in entrepreneurship. 1. If life gives you lemons, make lemonade. It is easy to get out of whack when problems arise; entrepreneurs instead always look for the next profitable opportunity. When raids on PX good suppliers became commonplace due to regulation, Dita as a 19 year old student-cum-entrepreneur shut down her PX retail operations and operated a poultry supply store. Soon after, big business came in with contract growing, thereby cornering supplies. At that time, Ruben, the dutiful son-in-law, was procuring construction materials from Binondo for Ditas father, an engineer involved in his own small construction projects, as much as three times a week. The errand runs bred supply familiarity, which before long, gave birth to the couples construction finishing materials business, something theyve grown for the last 30 years. In business as in life, change is a good harbinger of growth and is often a signal for us to change tack or the way we look at things. This attitude is always good for self-improvement but is particularly crucial for a small business to survive. 2. Treat people wellit opens doors. Sometimes, were too engrossed with the way we do things, forgetting the foremost prioritypeople. Treating people well brings with it its own psychic rewards; sometimes, it brings more. One day, John Gokongwei, then-president of Mariwasa, had a car problem in front of Ditas store. Unaware of his identity, Dita still was hospitable enough to make the man comfortable and have the car fixed by her staff. The couples hospitality and aid paved the way for Mr. Gokongwei to invite them to become direct Mariwasa distributors and get better credit terms. Dita avers that friendliness need not be the back-slapping politico type; rather, she swears by the sincere approach bred for continuity, not only for her social circle but including their professed critical partners in

businessthe bank partner and suppliers. She takes care of her supplierscrucial to a retail businessby keeping to her obligations. She spends time with her bankerstambay sa bangko. Time spent with bankers, who became friends, paved the way for her to learn financial systems. Dita started MBA but couldnt continue because of business; regardless, she gained her MBA teacher as a friend, who eventually taught her HR systems and pay grade systems. 3. Systems are key. No matter how profitable a business is, it will be reduced to nothing if you do not have systems, she shares. Sometimes, entrepreneurs delay getting the right systems to professionalize their businessa kind of penny-wise, pound-foolish mentality. Dita has filled in the systems information required by their business by tapping into the talent and contribution of her various professional friends. 4. Match your strengths to the right opportunities, then focus. Dita is laughter waiting to happen, but this easy demeanor belies her true naturea selfconfessed workaholic devoted to details, which is a perfect fit to a retail-intensive business and her supervision of financial management and backroom operations. When you find the fit, focus! Kahit ano naman s a b u h a y, t u t o k l a n g a n g kailangan, Dita muses. Find or develop people with the right skills, who can meet the business other needs. Ruben, for his part, is naturally apt for sales and marketing. Fit is particularly required between corporate culture and the business. In the small biz, corporate culture is dominantly colored by the owner s personality. Were conservative, Dita confesses, hence sound financial condition and careful expansion was a logical route and a conscious choice. She mentions wellknown chains in the business that have become household names. We started out around the same time; were friends, she shares. But they were more aggressive, which brought its own problems. Expansion became unwieldy. But they flow with opportunities by observing trends and developments in the environmentRubens forte. Timing lang talaga, Dita observes. But getting the right timing is actually the entrepreneurs ability to pick out the opportunity that gives the best leverage to his or her own strengthsand actually do something about it. Business or no business, the willingness to act when opportunity presents itself spells the difference between a dream and reality. If you look at it on the whole, Id agree with the anonymous guy who said that knowledge becomes obsolete but wisdom is for keeps. That said, a lot of what holds true in life also holds true in business.

Medical travel...
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tourism recently under the initiative of Secretary Ace Durano of the Department of Tourism (DOT). Medical tourism continues to grow, with the number of patients and clients rising from 60,000 foreign patients in 2007 to about 100,000 foreign patients in 2008 and gross revenues estimated to be at $350 million since the program was launched in 2006. In light of this booming phenomenon, the DOT expects the Philippines to have an influx of 1 million patients by 2015, generating a total of $3 billion from the global medical tourism industry, with 200,000 foreign patients arriving annually. The Philippines is well-positioned to take advantage of this sunrise industry, relates DOT Undersecretary Cynthia Carrion. The country has all the ingredients to be the hub for medical tourism. We have a large pool of very competent healthcare professionals with excellent English communication skills. Theres the innate hospitality and optimism of the Filipino people, as well as the countrys pleasant, tropical weather. Furthermore, the Philippines boasts of reasonably priced healthcare services and a favorable business environment. Of course, medical tourism in the country isnt without its share of hits and misses. While the countrys hospitals are steadily gaining international accreditationthe Medical City in Pasig, Chong Hua Hospital in Cebu, and St. Lukes Medical Center in Quezon City are all accredited by the Joint Commission International (JCI), a leading international accreditation bodyforeigners still question the brand of the country, with our unstable political environment, as well as the recent killings in Maguindanao. This was also the case when medical tourism started in India, says Dr. Malik: We had excellent hospitals and doctors but foreign patients were wary about getting their treatments

as India was plagued by terrorism. There were also issues with the tourism industry not integrating well with the healthcare industry. Weve learned that when a patient makes a decision, its not just about hospitals. He also decides on the brand of the country. It is with this intent that the DOT initiated the Health and Wellness Alliance of the Philippines (HEAL Philippines), composed primarily of private and public hospitals, spas, wellness destinations, stand-alone

clinics, retirement communities, and support services such as travel agencies, airlines, etc. According to Dr. Joven Cuanang, President of HEAL Philippines and Chief Medical Officer of St. Lukes Medical Center, one of the organizations strategies is to make sure that theres going to be a seamless delivery of healthcare in all the activities we want to promote. It will be a well-coordinated effort, from the patients point of entry to exit, between public and private institutions, making sure to highlight the gracious hospitality of the Filipinos. Catching the Quality Wave Given that the governments primary responsibility is to its local citizens, the big question when it comes to medical tourism is this: Whats in it for the local citizens? As a Filipino, one has to ask two questions:

1) How does medical travel/tourisms promotional earnings from this help the local citizen? And 2) How does this improve the local healthcare infrastructure? What medical tourism has done (for India) is that it initiated a quality enhancement wave which helps local citizens in getting better care than what was available to them previously, says Dr. Malik. If the earnings coming from foreign patients is utilized adequately to support public health, then it would be a win-win situation for both domestic and inter national patients. With the advent of medical travel, the Philippines quality standards when it comes to healthcare are enhanced. And with more hospitals steadily undergoing international accreditation programs, this also means that local patients will be benefitting from treatments that are at par with global standards. It will also enhance complementary industries such as telecommunications, travel, airlines and hospitality. It really has an effect that keeps on multiplying itself, shares Dr. Malik. I think that the most important effect is that it reverses and reduces the brain drain. Because according to a 2006 Gallup Poll, its lack of career progression and the workplace environment that are the main factors why people leave their countries or change their jobs. So if you create a kind of culture where you are utilizing international practices, theres good technology, and both foreign and local patients are treated well, you create a culture where a person feels satisfied. This reduces and reverses the brain drain of all the people who have gone abroad for greener pastures. If you have all these in your own country, why leave?

Evangeline a.k.a. Girlie Navarro is a serial entrepreneur and investor, a finance teacher, and a student at heart on how money and resources affect people. She can be contacted at evangeline.navarro@gmail.com.

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INDUSTRY

Business Agenda

Monday, March 22, 2010

Medical travel: The next big thing

Filipino competence and innate hospitality, and a growing gap between supply and demand in healthcare systems abroad, contribute to making the Philippines a preferred medical destination for more than just cosmetic procedures
By TRICIA v. MoRENTE

edical travel could be the Philippines next economic driver. In a recent press conference for the October 2010 International Summit on Medical Travel, Wellness and Retirement (IMWELL Summit), world experts from the hospitality, healthcare, travel and wellness industries discussed how to make the Philippines the next preferred medical travel destination in Asia. Medical travel has grown extensively over the years, with neighboring Asian countries like Thailand, India and Singapore all working hard at getting a piece of the pie. According to the Inter national Trade Commission of Geneva, medical travel today is estimated to be at the range of $40 to $60 billion and is growing annually at a rate of 20 per cent that by the year 2013, it is predicted to be a $188 billion global business. Clearly, someones pain is someone elses gain. In the United States alone, there are over 50 million uninsured Americans and a large number of underinsured, and with U.S. healthcare insurance costs skyrocketing at a higher rate than overall inflation, more and more employers are finding it difficult to provide their employees with adequate healthcare coverage. It is no surprise then that Americans have turned to overseas providers when it comes to addressing their healthcare needs. A global Demand for High-quality Care A marked reduction in new physicians entering the U.S. healthcare system and a growing aging population increases the gap between U.S. healthcares supply and demand. The United States accounts for $1.7 trillion of the $3.3 trillion spent annually for healthcare worldwide, says Dr. Sanjiv Malik, Honorary Chairman of the IMWELL Summit. Thats a little over 50 per cent that theyre spending on medical travel, yet a statement from the World Health Organization says that they rank only 37th when it comes to quality of healthcare. Europe and Canada also have their own set of challenges, discloses Dr. Malik. There is an increasing life expectancy and aging population and their public healthcare infrastructure is unable to cope with the number of patients. The average waiting time in England for a knee replacement is around 16 to 18 months. Developing countries like the SAARC, Micronesia region, Indonesia, Vietnam, Cambodia, and parts of Africa and Latin America have their share of challenges, too. They have a shortage of healthcare workers, as well as not having the facilities for advanced medical care. This is where countries like India, Thailand, Singapore, Malaysia and the Philippines come in. Filipinos, in particular, are known for their unique brand of care, compassion and sensitivity when it comes to dealing with patients. Says Dr. Malik: Its not just the quality of treatment, which, believe me, is excellent. What the Philippines and we Asians are known for is the quality of care. We treat human beings as human beings, and not as a commodity. There is huge potential in projecting ourselves as quality healthcare providers. Medical Tourism in the Country The Philippines, while having had foreign patients for more than three decades now, only launched medical
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