Chinese Business In The Philippines Rising and Evolving Opportunities
Chinese Business in the Philippines is one of the most prominent and influential treasures of history. The Chinese population in the Philippines is about 1.5% and is slowly growing. The Philippines being near China has attracted many traders and potential immigrants.
Filipinos have been transacting with the Chinese long before the Spanish, American, and Japanese Colonization. Because of this, the Chinese have influenced modern Filipino and Filipino-Chinese countrymen in both culture and business habits. These influences have slowly been integrated throughout the years that it is almost considered distinctly Filipino.
Binondo was the financial capital of the country in World War II and although the location of the Philippine financial capital is elsewhere in this day and age, it still remains as one of the most active business destinations in Manila. This further proves that the Philippines is an attractive destination for many investors and businessmen alike.
Business Influence of the Chinese
Chinese and Filipino-Chinese people are some of the best business leaders and influencers. Powered by Confucian roots and family values, they foster trust with clients and consumers by building lasting connections. This way, business matters are always dealt with in a personal and intimate manner. The Chinese have contributed to many efforts in industries such as in food and textiles. Their businesses have thrived because they value customer experience above all else, sensitive to their clients’ needs and wants in every way. They ensure that they take consideration of the feelings of who they’re dealing with and transacting with.
Chinese business in the Philippines is very traditional from the start. It may seem outdated but a good and solid foundation is always appreciated as it shows a concrete goal and structure. Gifts are appreciated but not required. Long meetings that build relationships and trust may seem drawn out but these are beneficial to both parties in the end. The process of getting to know both sides of each coin will make sure there is a lasting connection.
Besides being influenced by the business side, Filipinos also adapted significant habits from these Chinese roots. One such habit is asking for discounts. Any money saved is always beneficial. The culture of bargaining is especially evident in thrifting, wholesale or the morning market.
Filipino and Filipino-Chinese both celebrate Chinese New Year. They participate in warding off evil spirits by using firecrackers. Significantly, they both place round fruits on their dining tables to attract prosperity and luck. During New Years and Birthdays or just about any significant celebration, red envelopes are shared and given as cash gifts. These envelopes are called “Ang Pao”.
Red is the most popular color in China. Wearing bright colors during the holidays sparks joy. Red is enthusiastic and celebrates vitality and creativity. It brings luck and wealth. Speaking of luck, luck is determined by your Chinese Zodiac Sign.
Types of Chinese Businesses in The Philippines
The Philippines is home to many successful Chinese-owned businesses. This is closely attributed to the country being situated in a strategic location in the ASEAN (Association of Southeast Nations) region. Most immigrants humbly started with money lending before World War II and expanded to owning real estate throughout the years.
To start, exporting and importing products are some of the best ways to start a business. From the old ways of bartering and trading, this modern and updated version keeps any economy afloat. Investment opportunities such as exportation of food, automotive and electronic products are just a few examples.
Tourism is the most underrated business opportunity in the Philippines. Taking advantage of the rich culture and beautiful sights of this country is a smart move. Hotels and resorts are one of the biggest industries still growing and worth investing in. Many people are being given better opportunities to travel due to airline seat sales. Real estate for businessmen is currently booming right now. Many more companies need more office spaces to use and expand their businesses with. Treat this as a good sign as it symbolizes the constant movement of the economy. This doesn’t have to include corporate buildings. It can include housing and commercial establishments as well.
Notable Business Game Changers
There are many successful Filipino-Chinese businessmen residing in the Philippines. All of these men are smart and headstrong. They are passionate and goal-oriented entrepreneurs who didn’t stop and just sat in one place. They have the drive to grow and lead themselves to success. All of them took risks getting to the top. Here are some notable business game changers in the Philippines.
One notable game changer is Lucio Tan. He was born in China and moved to Naga Province as a working student studying Chemistry at Far Eastern University. In 1966 he worked in a tobacco factory as a janitor and eventually worked his way up to become a tobacco leaf dealer. With up to $4.3 billion worth in investments, he has pioneered Philippine Airlines. Under his belt as well as the Philippine National Bank, Tanduay Distillers, Asia Brewery and Fortune Tobacco Corp, his talent in the art of business has made him a formidable player in the industry.
Another trailblazer in the business arena is John Gokongwei Jr., who started from the bottom by selling soap in 1930s. He successfully turned his life around in the ever-changing Chinese business in the Philippines. He is the chairman and founder of JG Summit Holdings, which covers retail, real estate, malls, and media. Under JG Summit Holdings are Cebu Pacific, Summit Media, and Robinsons Malls and Department Stores.
Ben Chan in 1987 was working in a men’s boutique before conquering the local retail scene. Bench is one of the first local world-class brands. The local brand now covers apparel, cosmetics, furniture, and food. Ben is the chairman and director of Suyen Corporation which paved the way for the brand Human and Kashieca. His business prowess has also brought international brands such as Aldo, The Face Shop and Charles & Keith.
Jollibee is a well-loved, internationally recognized homegrown brand that is helmed by Tony Tan Caktiong. He was born the 3rd of seven immigrant children. His family ran a restaurant in Davao in order to provide education for the children. At 22, Tony Tan Caktiong started with ice cream, slowly expanding and hiring more people to serve hamburgers, fried chicken and spaghetti. Jollibee knows the local food culture, preferring a sweeter taste over traditional fast food. The king bee continued his path to more businesses such as Mang Inasal, Chow King, and Burger King.
Henry Sy is the godfather of Chinese business in the Philippines. Popularly known as the father of retail, he started selling G.I. boots when he was young until the collapse of their tiny store in World War II. But that didn’t stop his dream of becoming successful. Henry Sy’s name holds on to retail, real estate, banking, and malls, with an estimated net worth of $14.4 billion. These inspiring men all have something very similar about them, starting out from small ideas to bigger dreams. All of these game changers in the Chinese business in the Philippines never gave up on their dreams and continuously challenged themselves to think bigger and better.
Economic Opportunities: Benefits of Building a Business in The Philippines
When starting and investing in a Chinese business in the Philippines, it’s best to consider and think about all possible factors. This archipelago of islands has many to offer a smart businessman and entrepreneur.
The Filipino workforce is unbeatable in education opportunities. The Philippines is also a largely English-speaking country which is great for outsourcing labor. The quality of manpower is top-notch with an average literacy rate of 96.6% in 2015. This produces a high number of graduates every year, all of whom are ready to be trained for the workforce.
The current construction boom of the Philippines is an advantage for Chinese business in the Philippines. More roads and bridges are being built to contribute to the local infrastructure. Information technology systems within the country are also being developed and constantly upgraded, especially with the emergence of 5G.
The Philippines also caters to low-cost business startups, which are relatively more affordable with compensation packages, utilities, space and communication costs. With over 100 million in the population, the large consumer market makes it easy for many foreign companies to penetrate the local market. Chinese businesses in the Philippines may also enjoy tax incentives from the Philippine Economic Zone Authority.
Common Traits of a Good Businessman
To be a successful businessman, it’s best to have these traits and qualities. These are just among the few that are important to make a living in this industry.
A good businessman should have good leadership skills. The power of a commanding presence shouldn’t be underestimated. Besides being commanding, a good leader should know how to inspire their team. A good attitude and respect towards work can go a long way for team morale. Most businessmen and entrepreneurs don’t notice how their disposition affects the team, especially in long term situations.
Taking risks and experimenting is brave and always shows that the entrepreneur is thinking ahead. Staying with tradition is always good but with the constant change of technology and the magniloquence of life. Staying static is no longer an option, especially if a business wants to stay in the lead.
Creative minds rise to the top. Keep up with the times with new ideas and concepts in order to keep in line with trends. Creative ideas can come from all sorts of inspiring people and places. Creativity is a positive trait to hold on to. It can help solve problems easier and think of new ways to improve. It is the route to an authentic experience with life through things waiting to be discovered. Creative minds allow an individual to trust their instincts through calculated risks.
Communicating is an underrated skill. Communicating with the employees can help motivate the business to grow faster. Listening is also an important part of the business. Listen to clients well, it’s much appreciated. Also, by learning to listen to employees and new ideas, anyone can learn from each other easily if there’s constant a constant line of communication.
A person can have all this, but without passion, none of this will matter. The pursuit of small and long term goals with passion can make any Chinese business in the Philippines abundant. However, it takes time and effort. Make decisions with morals in mind and be knowledgeable about the target market, the business and consumers. Putting effort into all of this will pay off in the long term.
Get Connected and Get Started with China Philippines Unified Enterprises Inc.
The enticing economic growth of the Philippines is a Chinese business-friendly country. In the Philippines, business opportunities are in every corner, every industry, and all are widely available for investments. The strategic location of the Philippines allows easy access to other markets such as Malaysia, Thailand, and Japan. There is an abundance of foreign and local investors readily available to contact. The Philippines is a prime location of mixed cultures and diverse resources suitable for any passionate entrepreneur and businessman.
The business culture and attitude of locals are greatly influenced by fellow Chinese brothers and sisters currently residing and thriving in the local economy. Be inspired by the humble beginnings of the top Filipino-Chinese entrepreneurs chasing their dreams.
Explore the different benefits of building a business in the Philippines with a reliable workforce. Enjoy the growth of infrastructure, emerging roads, and evolving IT solutions because these can allow for easy expansion of local businesses.
Get connected and get started to achieve your business goals with China Philippines Unified Enterprises. Consult with CPU to get a high quality, wide range spectrum of specialized business services for all your needs. CPU is a professional consultancy firm that is based on trust and builds bridges with personalized solutions and answers to questions and problems.
China Philippines Unified Enterprises is an investment company in the Philippines covers company formation and structuring, such as corporate registrations, permit acquisitions, and PEZA registrations. CPU will help you find to connect with various industries in the Philippines such as construction, energy, and land development. No worries about property acquisitions and titling, CPU will guide you throughout each important process. So what are you waiting for? China Philippines Unified Enterprises can help you now. Doing business in the Philippines is easier now with CPU. If you want to know where to invest in the Philippines, head to our office in One Global Place, Bonifacio Global City or click here to visit our website!