John Gokongwei

- Universal Robina
- Cebu Pacific
- JG holdings

John L. Gokongwei Jr.’s great-grandfather, Go Bon Tiao (Pedro Gotiaoco) was born in the
farming village of Fujian Province, China in 1856. In 1870, his grandfather migrated to the
Philippines and established a trading company in Cebu. They bought a shipping company, insular
navigation and also went into insurance business. His great-grandfather was known to be one of
the largest taxpayer in Cebu during that time. Gokongwei Sr. did not work for his father’s
company, he instead established his own business. He built movie houses and became the owner
of one of the largest movie houses in Cebu.

Born on August 11,1926 in Gulangyu, Xiamen, Fujian Province, China, Gokongwei has lived
a luxurious 13 years before his father died due to blood transfusion gone wrong. Little they known,
his father was full of debt. All their belongings were seized by the creditors. His mother, Juanita
were forced to sell her jewelries, his siblings were sent back to China were the cost of living were
low, and John was placed under his great granduncle’s care who was a consul.

He was forced to work to support himself. He used to ride his bicycle around the market to sell
soap,

John Robinson Lim Gokongwei was born on August 11, 1926 in China to a Filipino-Chinese father
who was a scion of a wealthy Cebu-based family with ancestral ties to China’s Fujian province.
His patrilineal great-grandfather was Don Pedro Lee Gotiaoco, a wealthy Chinese immigrant
tycoon who was once the largest taxpayer in Cebu.

He has holdings in telecommunication, financial services, petrochemicals, power generation,

aviation and livestock farming. As of 2015, Gokongwei is the second richest entrepreneur in the
Philippines, with a net worth of over $ 5 billion, ranking behind Henry Sy.

From Riches to Rags to Riches again: The John Gokongwei Jr. Story (article)

According to an article released by Philippine Primer on July 21,2016 John Gokongwei

John Gokongwei was once a scion of wealthy Filipino-Chinese clan. He was born with a silver
spoon in his mouth and was studying in San Carlos University, one of Cebu’s premiere schools.
His family was known to be one of the richest in Cebu. But when his father died, all were taken
away to the family. The creditors seized their home and cars, their business was gone and suddenly
everything disappeared. They became flat broke.

At a young age, John Gokongwei Jr. had to work to provide for his family. His mother had to sell
her jewelries, his siblings were sent to China because the cost of living was cheaper. He sold
roasted peanut and opened up a small stall in the market, where he had to compete with other
vendors to sell his goods. He sold soap, candles, and threads to earn money. He knew he was at an
advantage because of his age and he took the opportunity from it.

It was in 1943 when Gokongwei began trading goods from Cebu to Manila. When the World War
II ended, he saw this as an opportunity to trade goods in the Philippines. He put up Amasia Trading
with his brother which helped him bring back his sibling home to help the business.

Aside from being the second richest man in the Philippines in 2016, according to Forbes Magazine,
John Gokongwei Jr. is also known to be a philanthropist.

John Gokongwei is 2017 “MAP Management of the Year”

John Gokongwei – a tycoon who has built an expansive business across the Asia-Pacific amid
tumultuous economic and political cycles starting from the Philippine colonial area – is this year’s
“M.A.P. Management Man of the Year.”

The 91-year-old Gokongwei, founder and chair emeritus of conglomerate JG Summit Holdings
Inc., was handpicked by the Management Association of the Philippines (MAP) to receive this
prestigious award bestowed on individuals in the business community or government for “attaining
unquestioned distinction in the practice of management and for contributing to the country’s
progress.”
This citation – which has only been conferred 41 times in the five-decade history of the award –
follows a thorough, stringent selection process. The criteria for the award include integrity,
leadership, and management qualities;

Nine Rules for Business Success of John L. Gokongwei Jr.

According to the biography entitled “John L. Gokongwei Jr.: The Path of

Entrepreneurship,” written by Marites A. Khanser there are nine rules of John

1. Change is inevitable and flexibility is the key.

2. Personal stakes in the company encourage everyone to work hard.
3. Mistakes and disappointments are inevitable.
4. Good brand building equals reputation.
5. Family support is crucial.
6. Never lose sleep thinking of business risks.
7. Pausing to recharge brings new vigor.
8. Reading and traveling enriches one’s mind.
9. Philanthropy is a personal satisfaction.

Entrepreneurial Traits of Gokongwei

 Foresight

When the Philippine President, Elpidio Quirino Jr. changed the economic policy of the
country wherein he increased tariffd and imposed import controls on goods to encourage local
businesses doesn’t stop John Gokongwei from doing business. Instead of trading goods, he decided
to manufacture cornstarch thus the Universal Robina Corporation was born. Not only that, he
expands his business into other fields such as Cebu Pacific, Robinsons Land Corp., and others.

 Integrity and Reliability

 Decisive
 John Gokongwei lost the court ruling of getting a board seat at San Miguel Corp but it
didn’t stop him to work more. He improves technology by working with new wats and intelligent
systems. He entered the telecommunications industry, petrochemicals industry, and others.

According to Dr. Khanser, entrepreneurs like Gokongwei are risk-takers, they thrive in the
high-risk market environments. But the risks they take are well-educated; they are not merely
gambling.

In the words of Gokongwei “Entrepreneurship is not for the weak of heart. There is no easy
path to success. You will need to work harder than your employees, to keep your mind sharp, and
to face your inner fears. In the end, entrepreneurship is not only finding opportunities to create
value in the business sense, but also finding the opportunities to be your best self.”

 Perceptiveness

John who were the small boy who used to sell soap and candles in a Cebu Market is now
a person who makes the world a better place with his enterprise. He offers quality products in a
cheaper price to his target customers because he knows that customers will give them benefits in
availing the products and services. He considers innovation to the product for him to gain more
and loyal customers.

“But to be a truly great nation, we must also excel as entrepreneurs before the world. We
must create Filipino brands for the global market place.” He constantly emphasized in his
speeches. “Through the years, the market place has expanded between cities, countries, and
continents. I want to urge you all here to think bigger. Why serve 86 million when you can sell to
four billion Asians? And that’s just to start you off. Because there is still the world beyond Asia.
When you go back to your offices, think of ways to sell and market your products and services to
the world. Create world-class brands,” he said.

 Initiative

He came from a wealthy family in Cebu but lost all their fortunes when his father died.
John was placed under the care of his granduncle. When his granduncle could no longer support
him, Gokongwei sold soap, thread, and candles on a bicycle to support himself.
 Unsatisfied, he traveled to Manila to sell products from Cebu and Lucena during World
War II. His initiative impressed older Chinese traders enough for Dr. Alberto SyCip, chairman of
the board of China Bank, to entrust him with a P500,000.00 loan when he wanted to start a corn-
milling factory in 1956. Since then, Gokongwei hasn’t looked back, investing and re-investing in
different ventures to grow his empire into what it is today.

Social Responsibilities

Being the 2nd richest man in the Philippines does not make John Gokongwei turn his back
on the people who needed his help. Being recognized by Forbes Magazine as a philanthropist due
to his great contributions to his foundations. Together with his brothers, he donated

 The Gokongwei Brothers Foundation

 The GBF Technical Training Center
 The Children’s Library
 Other GBF Donations:
o Donated land to church institutions
o Support 6 to 8 University scholards
o Donate part of his shareholdings in JG Summit to the GBF

Innovations

Perhaps one of the most known innovation of Gokongwei in the market was the
introduction of the C2 Green Tea in the Philippine market in the latter part of 2004.

“It’s true that Filipinos have long been coffee and soda drinkers but we noticed that they
were becoming more concerned with their well-being and were taking better care of themselves.
We therefore saw a need for a healthier alternative beverage.” Said Patricia Go, URC’s Advertising
and Marketing Services Vice President.
 URC founder John Gokongwei Jr. having previously seen several ready-to-drink tea
beverages during a trip to China, decided that it was time to introduce green tea to the local market.

Risks

Being a successful entrepreneur does not exclude Gokongwei from the risks that is included
in the package instead he will most likely be targeted.

In 1981, Gokongwei’s eldest daughter Robina was kidnapped on her way home from the
University of the Philippines.

“I was directly in negotiations with the kidnappers for 9 days. I lost 12 pounds. I only ate
banana during that time. That’s risk. That’s more risk than all the risks I’ve done in business. In
business you can only lose money, but risking the life of your own daughter, your oldest daughter
at that, that’s 9 days of horror.” Gokongwei said.

Robina was rescued by a team led by then Lt. Col. Panfilo Lacson. After the captors were
shot and Robina released, her father broke down and wept.

“I was taking the brunt because I was the one answering the phone and negotiating. They
wanted, I think 20 million [pesos]. I said, ‘You know, for 20 million, you’d need two trucks.’
Because at that time the highest bill was only P50 there was no thousand-peso bill. You have to
have a truck! Crazy.”

It did not only stop there, Ignacio Earl Ong, Gokongwei’s son-in-law married to her
daughter Faith was killed. He was a 28-year-old U.S.-educated engineer who drove to Tanauan
Batangas to inspect a building project. There were six armed men who drove to the site that
afternoon and forced Ong to his own vehicle, a Pajero. In Lipa City, 20 km away from the building
project, Ong was found dead with 10 shots on the body. Four of the six kidnappers lay dead around
him, the fifth was arrested by the police while the sixth escaped.
 The Tanauan authorities alerted their Lipa counterparts but failed to mention that Ong was
in the car also. The Lipa police set-up a roadblock and when the car approached they opened fire,
peppering the Pajero and its occupants with hundred rounds of ammunition.

Rewards

Despite being successful in his ventures, Gokongwei did not stop there. He continued to
look for other business ventures

One of the risks of being an entrepreneur is the probability of breaking family relationships
but John Gokongwei turn it into a reward. Ever since he started his trading business, he worked
alongside his mother and siblings. He built an entrepreneurial legacy for his family.

John Gokongwei proves famly-run conglomerates work

According to an article released by Rappler on November 27, 2017 John Gokongwei was
hailed as the Management Association of the Philippines (MAP) Man of the Year 2017. The JG
Summit Holdings Incorporated founder and chairman emeritus served a timeless reminder of the
depth of the Gokongwei family’s role in the advancement of the Philippine business.

“Just a few years ago, the conventional wisdom was that family-run businesses could not
be as well-managed as non-family-run businesses. But the research has shifted, and our experience
as a group shows that a hybrid of family-led publicly-listed businesses works,” Gokongwei said in
his speech on November 27.
 In 1993, JG Summit had a market capitalization of P6.3 billion. Today, the Gokongwei
group’s two holding companies, JG Summit and Robinsons Retails Holdings Inc. now have a
market value of around P665 billion and have created an estimated 60,000 jobs along the way.

Gokongwei went on to detail the challenges his group faced by going public and reaching
out to global financial markets in order to fulfill his ambition of being a pan-ASEAN conglomerate.

“Unless placed under the spotlight of the public eye, a family-managed company would
not be under pressure to perform. We would become soft and flabby. On the other hand, remaining
family-managed would imbue the business with the stability, strong culture, and long-term vision
necessary to see our investments bear fruit,” he explained.

This balance, Gokongwei pointed out, allowed the firm to invest in capital intensive
businesses that bridged the group’s first phase of growth to its current one.

Among the group’s many firms, he singled out as examples Cebu Pacific, which made air
travel affordable to ordinary Filipinos, and JG Petrochemicals, which contributed to the country’s
manufacturing base.

The same approach, Gokongwei added, “has allowed us to plant the Philippine flag in
Thailand, Indonesia, Malaysia, Singapore, China, Cambodia, and Laos, where Universal Robina
Corporation is now a major player, and in Oceanie, where we have acquired leading snack food
companies in Australia and New Zealand.”

The Gokongwei group also has an 8% stake in the country’s largest telecommunications
company PLDT, a 30% stake in the country’s largest power distributor Meralco, and a 37% stake
in Singapore-listed United Industrial Corporation, the parent form of Singapore Land.

“[The approach] allowed JG Summit to forge its own path, despite naysayers, who did not
understand our investment choices at first and believed we were not focused enough. It allowed us
to stick to our guns, and invest in industries like transportation, power, and telecommunications
which would be essential not only for our growth as a company but a nation’s as well,” said
Gokongwei.

The family patriarch credited his family, particularly his mother Juanita and siblings Henry,
Johnson, James, and Lily, for being his partners in starting JG Summit.
 “When we were still operating out of a small tindahan (store) on Martinez Street in Cebu
City, they acted as bodegeros (warehouse personnel), clerks, all-around handymen. They were
with me from the very beginning,” Gokongwei said.

He also made a special point to thank his “lifelong partner and love” Elizabeth Gokongwei
and their 6 kids.

“My wife and I always taught our 6 kids that choosing who they will marry is the most
important decision in their lives,” he added.

Gokongwei also thanked JG Summit’s managers, both family and professional colleagues,
as well as all of his employees, past and present. He said they were all instrumental to the growth
of JG Summit and RRHI.

“Without your commitment, talent, and your hard work, JG Summit and RRHI would not
have grown to this size. We are a family-run business and you are part of our family. This award
is yours as much as it is mine.”

Opportunities

When President Elpidio Quirino changed the rules in trading goods, Gokongwei seized the
opportunity to build a business that manufactures cornstarch in 1956.