Summary
Highlights
The episode introduces Henry Sy, the late richest man in the Philippines, and the founder of SM, the country's biggest mall chain. It promises to cover his journey from China, starting with selling cigarettes, opening his first shoe store, and the complete history of the SM empire.
Born in absolute poverty in Fujian, China, Henry Sy traveled alone to the Philippines at age 12 to help his father, who ran a small shoe store in Manila. This arduous and frightening journey, during which he suffered food poisoning and had only 10 cents, showcases his determination from a young age.
Upon arriving, Henry was heartbroken to see his father's frail health and the small, two-square-meter store where they also slept. He immediately started working, helping his father procure goods and attracting customers. He later enrolled in Anglo-Chinese School, graduating as a valedictorian in five years by aiming for a 90% grade.
World War II and the Japanese occupation of the Philippines devastated Manila, and Henry was injured by shrapnel. Though their stores were destroyed, Henry saw the aftermath as an opportunity. He used his savings to buy cigarettes from American soldiers and resell them for a profit, eventually leading him to rent a small store in Calle Carriedo.
Henry Sy's hard work paid off when he met a wholesale shoe importer. Lacking capital, he partnered with his grade school classmate, Lao Kang, to buy and sell combat boots. This venture was a massive success, leading to his first car and the opening of Plaza Shoe Store.
In 1949, Senen Mendiola joined as Henry's accountant. Together, they scouted competitors, observed customer preferences, and gathered insider information from salesladies. This led to the opening of their second store, Park Avenue Store, and Henry securing his first million-peso loan from China Bank.
Henry married Felicidad, a former shoelace vendor, in 1950. He also briefly studied commerce at Far Eastern University. In 1954, he and Lao Kang dissolved their partnership, splitting their branches. Henry, eager for more, embarked on a trip to the US and Europe in 1955 to learn about retail and fashion trends.
Returning with a clear vision, Henry partnered with Francisco Chong in 1958 to rebrand the Tiger Bazaar into Shoemart. He applied lessons from his travels, introducing air-conditioned stores, attractive salesladies, and fixed pricing, which significantly improved the customer experience and led to immediate success and a second branch.
Henry foresaw Makati's potential as a business district, leading him to dissolve his partnership with Chong and open Shoemart Makati in 1963. Despite initial skepticism and slow development, Henry's entire family became involved in the business, running the store and managing inventory.
As new Shoemart branches opened, Henry decided to diversify beyond shoes in Shoemart Makati, turning it into a department store akin to Macy's. In 1975, Shoemart rebranded to SM. During this period, he also acquired a small bank, Acme, which would later become BDO, and invested in real estate in Makati.
Henry Sy envisioned building supermalls, believing Filipinos craved more comprehensive shopping experiences. He identified a swampland at the EDSA and North Avenue junction as the ideal location for his first supermall. This ambitious project faced challenges due to the Philippines' economic stagnation and political uncertainty during the Marcos regime.
Despite skepticism, Henry Sy opened SM City North EDSA in 1985, the biggest mall in the Philippines and one of Asia's largest, featuring a food court, cinemas, and appliance centers. This marked the beginning of SM's golden age, leading to more malls, international expansion into China, and the development of the iconic 'We've Got It All' jingle.
SM continued its rapid growth, going public in 1994, building mega-malls like SM Megamall and SM Mall of Asia, and expanding further into China, owning four of Asia's seven biggest malls. By 2019, SM had 72 malls in the Philippines and seven in China, and also owned BDO Unibank, the country's largest bank. Henry Sy passed away in 2019, leaving behind a vast empire, a testament to his determination from his humble beginnings.