Family Business Brands Have Existed In The World For Over 200 Years

Family Business Brands Have Existed In The World For Over 200 Years

Some of the world’s best brands are family owned – Wal-Mart, Toyota, Peugeot, Samsung, Ford, Hyundai and Bennetton. While not every family-owned firm constitutes a brand, three quarters of the companies registered in the industrial world are family-owned. In the U.S., most family-owned companies are controlled by first and second generation family members. But in other countries, many family businesses have been owned by the same family for hundreds of years. According to Barbara Spector, editor-in-chief of Family Business Magazine, the world’s oldest family business is Houshi Onsen in Komatsu, Japan, which was founded in 718. “Family enterprises are the backbone of the economy in virtually every nation, and indeed, the world’s oldest family companies have outlasted many national governments,” she says. 200-year old family businesses. Les Henokiens is an elite club of family businesses that only allows membership of companies that have been existing for at least 200 years. It has 38 members – fifteen are Italian, 10 are French, four are German, one is Dutch, four are Japanese, one is Belgian, two are Swiss and one is Irish. This club is said to have been inspired by the Bible’s book of Genesis, by the story of Enoch, son of Cain and father of Methuselah who walked the earth for 365 years and then ascended to heaven without dying. The oldest member of Les Henokiens is Hoshi, a Japanese inn founded in Komatsu in 718. Run by Zengoro Hoshi, the 46th generation of the family, its motto is practical: “Take care of fire, learn from water, cooperate with nature”. But, according to Centuries of Success, published in 2012...
The Importance of a Family Brand

The Importance of a Family Brand

Family brands like Toyota and Peugeot are emblems of success and prestige. They have strong brand identities that consumers believe in and trust. Professor Harold James of Princeton University says of Wilkins and Sons, a British family brand of jam: “What does Wilkins and Sons tell you on the underside of the lid which you can only see when you have bought the product, how many generations they have been in family ownership? This is presumably seen as creating trust, or as a pledge of quality.” Promise. The brand is your promise to customers. Some are designed and built with the help of branding experts. Others have evolved and survived, or disappeared because their owners are busy running their businesses. In the end, your brand is the impression of your customers based on what they have experienced and what others have said about it. Concrete case. A concrete business had been successful in its hometown because of its reputation for building the smoothest driveways for 100 years. It had been owned and managed by three generations. Its brand promise was understood by customers but unspoken. That’s when the problem arose – the brothers often disagreed on their brand promise, leading to insults hurled across the room or on telephone. One night the older brother inspected a driveway that had been earlier poured with concrete by his younger brother. While checking, the older brother found tiny cracks in the foundation and said the job was not done right. But the customer was delighted with the driveway. The older brother explained it looked good now, but feared the tiny cracks would...
Lao Family’s D&L Industries Posts P1.6B Net Income  in First 9 Months of 2015

Lao Family’s D&L Industries Posts P1.6B Net Income in First 9 Months of 2015

Publicly listed D&L Industries’ net income reached P1.66 billion in the first nine months of 2015, 13 percent higher than the same period last year, a disclosure to the Philippine Stock Exchange (PSE) said. Owned by the Lao family, D&L Industries is a Filipino company engaged in specialized products for food, plastics and aerosol industries. It manufactures customized food ingredients, specialty raw materials for plastics and oleochemicals for personal and home care use. Established in 1963, D&L has the largest market share in each of the industries it serves and longstanding customer relationships with the Philippines’ leading consumer and chemical companies. It was listed on the PSE in December 2012. The disclosure said the volume of refined vegetable was brought down by lower palm and coconut oil prices. However, this was offset by accelerating volume and margin in oleochemical specialties and food ingredients. Aerosols again delivered good results, while specialty plastics modestly grew in the third quarter. In total, high margin specialties, which accounted for 61 percent of revenues, outgrew commodities. With the improving mix and sustained margin gains across all segments, gross profit margin increased to 17.8 percent from 15.7 percent in 2014, the disclosure added. The company generated 17.9 percent return on equity and 17.4 percent return on invested capital. Overall, strong volumes in specialties, improved mix and continued recovery of specialty plastics are expected to drive earnings growth for the rest of 2015. The disclosure said the company’s cash flow continues to benefit from the weakness in commodity prices. From negative free cash of P157 million in 2014, the company generated positive free cash of P2.02...
Megaworld and Travellers International To Build P65-Billion Westside City, The Country’s First Grand Opera House

Megaworld and Travellers International To Build P65-Billion Westside City, The Country’s First Grand Opera House

The country’s performing arts will have a new venue in 2020 – the proposed P65-billion Westside City by Megaworld and Travellers International. A project of Megaworld chairman and CEO Andrew L. Tan, Westside City is envisioned to be the “Broadway of Asia,” according to a disclosure to the Philippine Stock Exchange (PSE). A project of Megaworld chairman and CEO Andrew L. Tan, Westside City is envisioned to be the “Broadway of Asia,” according to a disclosure to the Philippine Stock Exchange (PSE). Part of the Tan family-owned and publicly listed Alliance Global Group, Inc., Westside City will be built on a 31-hectare leisure and entertainment township at the Entertainment City in Paranaque City. Alliance Global Group, Inc. is the mother company of Megaworld and Travellers International. Westside City, which will have 3,000 seats, will be home to the first grand opera house and the second Resorts World property in the country. Tan is a staunch supporter of the Filipino performing arts, with the Newport Performing Arts Theatre in Newport City, Resorts World. “We are very excited to see Westside City rising to be a showcase of Manila as a truly world-class Philippine capital,” he said. Westside City will also be home to Megaworld’s upscale residential condominiums, a luxury mall and hotels like The Westin Hotel of the Starwood Asia Pacific Hotels & Resorts Group, Hotel Okura Manila of the Okura Hotels & Resorts, the Genting Grand and Crockfords Tower of the Genting Group and Kingsford Hotel. These hotels will have a total of 1,500 rooms. Westside City is Megaworld’s 20th integrated urban township. It is also the company’s second...
Trends in Family Businesses

Trends in Family Businesses

In the early days, family business was not given a serious thought that they were referred as a mom and pop industry. Engine of growth. However, this image has changed, and family businesses are now recognized as engines of growth in many countries.  More than 95 percent of businesses registered in the Philippines are under the small medium enterprises (SMEs). Furthermore, current Philippine business leaders started to build their business empires through the SME route. Taipans Henry Sy and John Gokongwei built their fortunes from the ground up through the SME route. Transition team. One trend is the management of a family business involves majority if not all members of a family. To ensure there is unity in managing the business, all children are given responsibilities. A family usually creates a team to find a successor of the top honcho once the founder retires. A team on board ensures a smooth and conflict-free transition. In a 1997 study, the Arthur Andersen/Mass Mutual Family Business Survey reported that 42 percent of family firms were open to the idea of training co-presidents for the next batch of leaders. Couplepreneurs. The next trend mentions the emergence of “couplepreneurs.” Business coach and entrepreneur Jean R. Charles cited that the “fastest-growing family businesses today are new businesses started by couples who jointly share ownership, commitment and responsibility.” “Couplepreneurs” is giving a perspective to the workplace and relationship as well. Moreover, this brings the couple’s relationship to a new level where the compatibility of the couple will be subjected to an acid test. When a family business is established, the owner is expected to designate...