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The digital revolution continues to sweep across the global retail sector. Stores and outlets that emphasize customer loyalty and the spirit of entrepreneurship are fighting to keep these and other human values alive.
Balancing the human touch with digital advantages is no easy feat, as many retailers have discovered. But in the Philippines, Liberty Commercial Center (LCC) Group of Companies is leading the way.
Despite a full-blown digital modernization program, Chair and CEO Antonio Sy Tan says several pillars and priorities keep the Group grounded.
“The pillars of the business are integrity, hard work and services to the community,” he tells The CEO Magazine. “They may sound basic, but we’re proud of them.”
And now, as LCC adopts ecommerce loyalty programs and undertakes a company-wide modernization effort, Tan says affordability and accessibility to customers remain paramount.
“The biggest challenge we face is labor, which is why we’ve invested so heavily in ecommerce and digitalizing our platforms,” he explains.
“But there are still many customers who want the brick-and-mortar store experience, so we’ve adapted the ecommerce system to suit our situation and modernized our stores to satisfy our clientele.”
How that manifests in practice is a combination of community-minded programs such as scholarships and disaster relief, support for local farmers and businesses, sustainability initiatives such as eco-bags in LCC department stores, as well as various accessibility and affordability options and promotions for loyal customers.
“That’s all very important for us, so it means we’re renovating our malls. We’re updating our escalators and elevators and we’re stocking shelves with local produce,” he reveals.
“We’re working to reduce our waste and adopt solar energy programs and other green operations.”
The sheer amount of change in the Group’s sights isn’t always easy for a company so well established.
Founded by Tan’s parents in 1945 as a small bazaar providing for a war-shattered populace, LCC quickly expanded. Its first mall arrived in Legazpi City in 1981 and the portfolio has grown steadily since, including combo stores, supermarkets, department stores and malls to round out the footprint. One thing they all have in common is Tan’s desire to attract the younger market.
“The Philippines has a younger customer base, so we’re always renovating and innovating at our stores to be more attractive to that demographic,” he points out.
There’s also great effort made to serve areas that are unserved and underserved.
“LCC’s home is the Bicol region; serving the smaller communities has actually become one of our focuses,” Tan says.
There’s also plenty of attention paid to LCC’s legacy. This year marks the 80th anniversary of the Group’s establishment, which it has celebrated with specials and deals. The company’s size offers the agility to do so.
But just because LCC has taken the path less traveled by the industry’s giants, it doesn’t mean the Group lacks heavyweight allies. Within the walls of its malls and supermarkets are big-name brands such as Alaska Milk Corporation, Century Pacific Food and Nestlé Philippines, right alongside smaller entrepreneurs looking for a prime spot in front of a steady parade of customers.
Tan says every partner is integral to LCC’s success and that nurturing such relationships is an art that the Group has been refining since 1945.
“We treat them as family, first and foremost,” he says. “The essentials in any relationship are fairness, transparency and consistency, but it’s trust that is the cornerstone of any partnership we’re a part of.”
This philosophy extends to the company’s clientele as well as its allies, he adds.
“You have to treat your suppliers and customers fairly,” he insists. “To me, these are the two most basic ways to sustain a business, and we’ve always put them into practice.”
Having grown up with LCC and followed his parents’ example, it’s no surprise Tan has a very clear business philosophy, anchored by the principle of leading by example.
“That’s something I adhere to,” he says. “No-one should have a monopoly on ideas, and I’m always open to suggestions from my team. A good leader should also be a good follower.”
These and other principles can be found in every facet of the Group.
“The most important principle is hard work. You show up, you work hard and the results are there for all to see,” he explains. “That’s very important to me, and I think it’s a big driver of LCC’s success.
“The second pillar is integrity and the third is consistency; both go a long way toward proving to customers and partners that you’ll keep your word and deliver what you promise.”
Tan says there was one very important lesson that has kept him going during the tough times, particularly 1977, LCC’s annus horribilis, when both of the flagship family stores burned down. It was this disaster that inspired Tan to step up and restructure the business to avoid a repeat wipeout.
He and his siblings took charge of the Group and developed it into the diverse portfolio it is today. While resiliency, versatility and adaptability are all traits he honed during that time and continues to use today, there’s one above all that Tan promotes to up-and-comers in the LCC family.
“I always say to our younger staff, ‘Don’t be afraid to fail,’” he says. “Failures are an essential ingredient of success.”
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