(Rommel's story always reminds me that the simplest concepts are those that succeed.)
Published in Business Mirror
Having fun and making money are two things that Rommel Juan can mix quite easily.
Even during his college years, he was able to cash in on his fun ideas to make a quick buck. So when he opened Binalot and called it the “pambansang tsibugan,” he knew people would come in to sample the food and bask in its humor.
Binalot started as a food delivery service in 1996, when Rommel, then 24 years old, decided to embark on the business “for fun” and “because I had extra time in my hands.” Until then, Rommel was involved in the family’s automotive business, handling sales and marketing.
The decision to go into business was not surprising. Rommel comes from an entrepreneurial family, “where we discuss business each waking moment.” Pacita Juan, the genius behind the Figaro Coffee chain, is an aunt. Even when he was in grade four, Rommel was peddling stickers to his classmates. He was, however, not really money-savvy. In fact, he was a mere “agent” of his brothers, who financed the sticker business, and who could only scratch their heads when Rommel’s collections would fall short of sales. “Money didn’t turn me on. I did those things for the interaction with people. I didn’t even know how to count change,” he recalled.
Rommel says he set up Binalot “as a creative outlet.” He was into cartoons, comic books and always did the flyers and ads of their family business. “I’m really corny. I say things like what’s wrong, polo barong? What’s the matter, peanut butter? Binalot is really an extension of me.”
Rommel confesses that he didn’t know much about the food business when he started Binalot in 1996. He didn’t know how to cook, and had to ask the help of a family friend, Aileen Anastacio, in creating the dishes. Initially, Binalot was limited to food deliveries. “Ako mismo ang naglalako,” he related. Business was good. Then the Asian crisis struck, and the next thing Rommel knew, his sukis in the offices were all gone as many companies closed down. He was already mulling closing down the business, when, in act of divine intervention, Shangri-La Mall offered him space in its food court.
Though unsure of its prospects, Rommel grabbed the opportunity. “I said this is make or break for me, but I won’t fall in love with the idea (of the business). If it wouldn’t take off, then Ie would not hesitate to just close down the entire thing.”
Binalot’s opening day performance decided the company’s fate. “On the first day, there was the longest line I have ever seen,” he recalled. It was obvious. “This was our second lease on life.”
Binalot’s offerings of rice topped with Filipino favorites, served with achara (pickled papaya), tomatoes and salted eggs, all wrapped in banana leaves, became an instant hit with the lunch crowd who have obviously had enough of burgers and spaghetti. Binalot’s menu consisted of tried and true Pinoy favorites such as adobo, tapa, bangus, bistek, tocino and longganisa. Its humorous names – bistek walastik and adobonanza -- also became a hit with the crowd.
Encouraged by his initial success, Rommel opened more Binalot outlets in mall food courts. Unlike the food delivery business, he says, “sales are steadier in retail, and it is much more easier to plan for.”
As business grew, Rommel explored new business possibilities. “When we reached six stores, I realized that we actually had a brand.” However, he also recognized that his responsibilities were mounting. “I realized, marami na tao ko, hindi na laro ito. This boy playing has lives depending on him.”
To better take stock of things, he took up a Masters in Entrepreneurship at the Asian Institute of Management. This allowed him to have “a bigger outlook.” For the first time, he “saw the forest” which was just as well, because as he himself declares, “I am all about branding.”
Following this, Rommel ventured into franchising. First, he had to make sure that the business was replicable and that its systems were robust enough to be transplanted elsewhere.
In 2003, Binalot opened its first franchise outlet in Intramuros. This step, he said, was pivotal to Binalot’s growth. The franchise route allowed Binalot “to grow exponentially.” Today, Binalot has 30 outlets and Rommel is confident it would surpass 40 outlets within the year.
Rommel says Binalot’s success is rooted in the efforts of its people. “I keep it enjoyable for all our people,” he says, not hesitating to ask them “are you still having fun?” during their one-on-one performance reviews. He likewise makes sure that his people are empowered so they become more accountable for their actions.
Binalot is heavily invested in training its people. At the same time, it makes sure it treats its people well and pays the minimum wage. Rommel admits that “people management is the hardest part of running a company” and makes sure he is attuned to their needs and thoughts.
As a result, he is able to count his peole as his steady allies. “I bring my people together to help.” In fact, Binalot has its own corporate social responsibility (CSR) program, which it calls the “dangal at hanapbuhay para sa nayon” (dahon) program. Under this program, Binalot has commissioned a community from the Southern Tagalog region to provide it with a steady stock of banana leaves. The program has allowed erstwhile idle women to make as much as P200/day. The Binalot staff derives obvious pride from the knowledge that they are able to help many families.
Of course, Rommel recognizes his role in growing the Binalot brand. “The key success factor was that I loved it. I have the passion for it, which means I never had to work a day in my life.” //
Tuesday, January 8, 2008
Monday, January 7, 2008
Toy Recalls, Circa Philippines
Published in BusinessMirror
Perspective Section
December, 2007
To many children, Elmo, the much loved furry red monster from Sesame Street, is more than just a plaything. To children ages two to five years old, Elmo is a trusty playmate -- a friend to lug around the playground; one who won’t complain when hugged, pinched or smothered with kisses. For parents, Elmo even makes a good teacher. How many children from all over the world have learned the letters of the alphabet or mastered numbers one to ten from this ticklish little creature? Children eat orange and broccoli because Elmo does, too.
Imagine parents’ shock, then, when Mattel announced a massive global recall of toys in August this year that included Elmo, Big Bird and Dora the Explorer toys, among others. On August 1, Mattel’s Fisher-Price division announced that it was recalling 1.5 million preschool toys because of lead paint. That action included 967,000 toys sold in the United States between May and August. Two weeks later, it announced that it would be recalling 19 million toys worldwide, mainly Chinese-made toys that either had excessive amounts of lead paint or had small magnets that could easily be swallowed by children. It announced that further recalls could follow, as it began investigations and production checks in its factories in China.
Toy recalls are nothing new in America. For the past two decades, monthly recalls have been issued covering all kinds of toys and children’s equipment for an assortment of reasons – high lead content, having loose buttons or small parts that can come off, being made without fire retardants, among others. Almost every toy brand has experienced having its items pulled off the shelves for reasons that Filipinos typically do not worry about, but which American consumers have been trained to regard as a possible health hazard. The average Filipino consumer, for instance, would not worry about a teddy bear with loose button for eyes, or fret over drawstrings longer than 2 inches on a toddler’s shirt. American regulators, though, would see those loose buttons as a possible choking hazard, and the drawstrings as a possible strangulation threat.
High lead content, ingestion of which can lead to developmental delays and learning difficulties, is the top reason why toys are pulled off the shelves. American consumers are, in fact, relatively well informed in matters involving product recalls, and trooping to the store to return a crib or a doll that fails product safety standards is almost a non-event for many. US retailers, for that matter, do not question a customer who walks in to return or exchange a toy for whatever reason. Tired of Piglet? Here’s Pooh Bear instead.
The August toy recalls, though, were troubling for their scale. Never before have parents seen so many of the children’s best-loved toys being labeled as a health hazard. For many, it was agonizing to think that those Elmo stacking rings their babies have mouthed with aplomb actually contained dangerous levels of lead. Even before trade officials could get moving, parents all over the world were already emptying their children’s toy boxes to flush out the toys they deemed to be everything but dangerous. The recall scare did not spare the Philippines, especially affecting those parents who normally pick up toys in their travels to the United States. The response, though, was more subdued than the frenzy experienced in other countries.
Unlike the full-blown recall carried out in the United States, the Philippine recall was much more limited in scale. Fortunately for Mattel’s toy distributors in the Philippines, Richwell Trading and Ban Kee Corporation, the toy stocks in their warehouses were not among the flagged toys. According to a Mattel press statement, the Philippine recall was limited to three main lines, including 16 lines of Polly Pocket toys with magnets made in 2006 and earlier (Pollyworld Dial a Style; Polly World Rocking Theme Park set, Quick Click Playset, Quick Click Penthouse, Quick Click Boutique, among others.); Magna Battle Armor, Batman and Fight Wing Batman Magnet Lok system figures; as well as Sarge die-cast cars from Disney/Pixar. The recall announcement was made through print ads in major Filipino dailies as well as through notices in the customer service counters of major toy retailers.
Of course, there were many questions raised, especially among those who had purchased some of the recalled toys in the United States. Filipinos taking to the net were also surprised to find some of their old toys in the recall lists of the past years, and could only shake their heads in dismay.
But unlike American parents who frantically pulled out the toys from their children’s toy boxes, Filipino parents, after their initial shock, were far more relaxed about the whole recall to-do. Perceptions, Inc., a public relations firm tasked to handle the Mattel recall hotline in the Philippines, was initially deluged by calls from worried consumers but the tumult soon petered out. Rhea Bautista of Perceptions reports that out of more than 100 calls made to the Mattel hotline since August, less than half of the callers have followed through on their complaint. In fact, the on-ground team has been busy following up these callers, but many are no longer keen on following up on their complaint, even if the toys can be picked up by courier. “Di bale nalang,” was a common refrain.
Bautista notes that there have been zero returns for the Batman figures, and negligible figures for the Barbie kitchen and living room sets. The most returns were for Polly Pocket dolls, whose magnets were found to easily detach from the toys and which could cause a choking hazard if swallowed. Majority of the callers, she notes, came from the upper socioeconomic classes, which is not surprising considering that toys made by Mattel are priced above the reach of the mass market. Whether Filipino parents simply do not give much weight to the hazards of lead ingestion, belittle the possible dangers posed by these toys in their bedrooms, or are inured to having the developed world dump toxic products dumped in their children’s bedrooms, is something that only they can determine.
Bautista points out that it is far easier to exchange or return recalled toys through the Mattel hotline. Unlike retailers who still require the official receipt, and sometimes even the original packaging of the toys, Mattel is ready to pick up any toy that bears the right product code or at least fits the description of the toy in question. Bautista adds that even toys bought in other countries, including the Dora and the Sesame Street line, are now being received and processed through the Philippine hotline.
Of course, returning toys has not always been this easy in the Philippines. The first wave of recalls, which covered the Dora the Explorer line, had to be processed through Mattel’s Malaysia office. A parent who tried to return her daughter’s Dora toy found it simpler to dump the toy in the trash bin instead.
Today, Mattel’s Southeast Asia office in Malaysia still oversees recall operations in the Philippines, which will run up to February 2008. The Department of Health is the government agency closely monitoring the pull-outs, while the Department of Trade and Industry is simply assisting the involved retailers.
DTI Undersecretary Zeny Maglaya notes that Mattel “pulled out quickly” following the recall announcements. Toy manufacturers and importers, on the other hand, are voluntarily seeking and presenting laboratory results attesting to the safety of their toys, especially those toys that are being packaged with kiddie meals by fast food chains.
Last November, the DOH issued a circular requiring importers and manufacturers to present their laboratory results to the DOH-attached Bureau of Technology and Health Devices following a six-month transition phase, during which consultations will be made.
In the meantime, the public could only hope that toy manufacturers and government agencies could at least conduct independent audits at different points of the supply chain, whether it be at the manufacturing, shipping or retail levels. Third party laboratories and testing facilities should also be identified. Filipino retailers could undertake their own safety checks on toys, similar to what retailer SM did for the Christmas lights sold in its stores. Product registration cards should also be included in toy products to ensure the success of future recalls.
Maglaya believes the recall wave has made Filipino consumers more aware of the need to ensure product safety and quality. “The China recalls was a wake-up call. More calls were made to our consumer direct line,” she added. That, she says, is a “good sign” which means that no matter how slow, Filipinos are somehow on the road to consumer vigilance. //
Perspective Section
December, 2007
To many children, Elmo, the much loved furry red monster from Sesame Street, is more than just a plaything. To children ages two to five years old, Elmo is a trusty playmate -- a friend to lug around the playground; one who won’t complain when hugged, pinched or smothered with kisses. For parents, Elmo even makes a good teacher. How many children from all over the world have learned the letters of the alphabet or mastered numbers one to ten from this ticklish little creature? Children eat orange and broccoli because Elmo does, too.
Imagine parents’ shock, then, when Mattel announced a massive global recall of toys in August this year that included Elmo, Big Bird and Dora the Explorer toys, among others. On August 1, Mattel’s Fisher-Price division announced that it was recalling 1.5 million preschool toys because of lead paint. That action included 967,000 toys sold in the United States between May and August. Two weeks later, it announced that it would be recalling 19 million toys worldwide, mainly Chinese-made toys that either had excessive amounts of lead paint or had small magnets that could easily be swallowed by children. It announced that further recalls could follow, as it began investigations and production checks in its factories in China.
Toy recalls are nothing new in America. For the past two decades, monthly recalls have been issued covering all kinds of toys and children’s equipment for an assortment of reasons – high lead content, having loose buttons or small parts that can come off, being made without fire retardants, among others. Almost every toy brand has experienced having its items pulled off the shelves for reasons that Filipinos typically do not worry about, but which American consumers have been trained to regard as a possible health hazard. The average Filipino consumer, for instance, would not worry about a teddy bear with loose button for eyes, or fret over drawstrings longer than 2 inches on a toddler’s shirt. American regulators, though, would see those loose buttons as a possible choking hazard, and the drawstrings as a possible strangulation threat.
High lead content, ingestion of which can lead to developmental delays and learning difficulties, is the top reason why toys are pulled off the shelves. American consumers are, in fact, relatively well informed in matters involving product recalls, and trooping to the store to return a crib or a doll that fails product safety standards is almost a non-event for many. US retailers, for that matter, do not question a customer who walks in to return or exchange a toy for whatever reason. Tired of Piglet? Here’s Pooh Bear instead.
The August toy recalls, though, were troubling for their scale. Never before have parents seen so many of the children’s best-loved toys being labeled as a health hazard. For many, it was agonizing to think that those Elmo stacking rings their babies have mouthed with aplomb actually contained dangerous levels of lead. Even before trade officials could get moving, parents all over the world were already emptying their children’s toy boxes to flush out the toys they deemed to be everything but dangerous. The recall scare did not spare the Philippines, especially affecting those parents who normally pick up toys in their travels to the United States. The response, though, was more subdued than the frenzy experienced in other countries.
Unlike the full-blown recall carried out in the United States, the Philippine recall was much more limited in scale. Fortunately for Mattel’s toy distributors in the Philippines, Richwell Trading and Ban Kee Corporation, the toy stocks in their warehouses were not among the flagged toys. According to a Mattel press statement, the Philippine recall was limited to three main lines, including 16 lines of Polly Pocket toys with magnets made in 2006 and earlier (Pollyworld Dial a Style; Polly World Rocking Theme Park set, Quick Click Playset, Quick Click Penthouse, Quick Click Boutique, among others.); Magna Battle Armor, Batman and Fight Wing Batman Magnet Lok system figures; as well as Sarge die-cast cars from Disney/Pixar. The recall announcement was made through print ads in major Filipino dailies as well as through notices in the customer service counters of major toy retailers.
Of course, there were many questions raised, especially among those who had purchased some of the recalled toys in the United States. Filipinos taking to the net were also surprised to find some of their old toys in the recall lists of the past years, and could only shake their heads in dismay.
But unlike American parents who frantically pulled out the toys from their children’s toy boxes, Filipino parents, after their initial shock, were far more relaxed about the whole recall to-do. Perceptions, Inc., a public relations firm tasked to handle the Mattel recall hotline in the Philippines, was initially deluged by calls from worried consumers but the tumult soon petered out. Rhea Bautista of Perceptions reports that out of more than 100 calls made to the Mattel hotline since August, less than half of the callers have followed through on their complaint. In fact, the on-ground team has been busy following up these callers, but many are no longer keen on following up on their complaint, even if the toys can be picked up by courier. “Di bale nalang,” was a common refrain.
Bautista notes that there have been zero returns for the Batman figures, and negligible figures for the Barbie kitchen and living room sets. The most returns were for Polly Pocket dolls, whose magnets were found to easily detach from the toys and which could cause a choking hazard if swallowed. Majority of the callers, she notes, came from the upper socioeconomic classes, which is not surprising considering that toys made by Mattel are priced above the reach of the mass market. Whether Filipino parents simply do not give much weight to the hazards of lead ingestion, belittle the possible dangers posed by these toys in their bedrooms, or are inured to having the developed world dump toxic products dumped in their children’s bedrooms, is something that only they can determine.
Bautista points out that it is far easier to exchange or return recalled toys through the Mattel hotline. Unlike retailers who still require the official receipt, and sometimes even the original packaging of the toys, Mattel is ready to pick up any toy that bears the right product code or at least fits the description of the toy in question. Bautista adds that even toys bought in other countries, including the Dora and the Sesame Street line, are now being received and processed through the Philippine hotline.
Of course, returning toys has not always been this easy in the Philippines. The first wave of recalls, which covered the Dora the Explorer line, had to be processed through Mattel’s Malaysia office. A parent who tried to return her daughter’s Dora toy found it simpler to dump the toy in the trash bin instead.
Today, Mattel’s Southeast Asia office in Malaysia still oversees recall operations in the Philippines, which will run up to February 2008. The Department of Health is the government agency closely monitoring the pull-outs, while the Department of Trade and Industry is simply assisting the involved retailers.
DTI Undersecretary Zeny Maglaya notes that Mattel “pulled out quickly” following the recall announcements. Toy manufacturers and importers, on the other hand, are voluntarily seeking and presenting laboratory results attesting to the safety of their toys, especially those toys that are being packaged with kiddie meals by fast food chains.
Last November, the DOH issued a circular requiring importers and manufacturers to present their laboratory results to the DOH-attached Bureau of Technology and Health Devices following a six-month transition phase, during which consultations will be made.
In the meantime, the public could only hope that toy manufacturers and government agencies could at least conduct independent audits at different points of the supply chain, whether it be at the manufacturing, shipping or retail levels. Third party laboratories and testing facilities should also be identified. Filipino retailers could undertake their own safety checks on toys, similar to what retailer SM did for the Christmas lights sold in its stores. Product registration cards should also be included in toy products to ensure the success of future recalls.
Maglaya believes the recall wave has made Filipino consumers more aware of the need to ensure product safety and quality. “The China recalls was a wake-up call. More calls were made to our consumer direct line,” she added. That, she says, is a “good sign” which means that no matter how slow, Filipinos are somehow on the road to consumer vigilance. //
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