John Gokongwei is a Chinese Filipino businessman with holdings in telecommunications, financial services, petrochemicals, power generation, aviation and live stock farming, financial services, petrochemicals, power generation, aviation and live stock farming/ He is the chairman of JG Summit Holdings, one of the largest conglomerates in the Philippines.
Background
He was born into a wealthy Cebu-based family, originally from China's Fujian province. The family fortune was lost when his affluent father died. He started his business career during World War II, buying and selling rice, clothing and scrap metal. He is married, and has six children. His only son, Lance Gokongwei, is now in charge of the Gokongwei Empire, serving as president and COO while his father serves as Chairman Emeritus.
John Gokongwei and fellow businessman Andrew Gotianun are cousins.
Education
He attended a premier institution, the University of San Carlos, where he finished his elementary and high school education.
Career
After the Second World War broke out, Gokongwei was forced to fend for himself after his granduncle could no longer support him. During those years, the young Gokongwei, pedalled his wares using his bicycle. It was his first taste of being a businessman.
But Gokongwei was ambitious and was not contented in just peddling his wares by bicycle. He then entered what he called the “Batel Age”. He would travel from Cebu to Manila selling stuffs via the batel or a small boat. Once, the batel he was riding sank after hitting a rock. The other passengers clung on to the tires he was going to sell upon reaching Manila and thus, preventing Gokongwei from losing his wares.
Seeing an opportunity for import trading, Gokongwei established his first company, American-Asia Trading. However, he quickly realized that tariffs will eat up his margins and so he ventured into manufacturing business and set up Universal Corn Products in 1956 using a loan granted to him by Dr. Alberto SyCip, father of Washington SyCip and the Chairman of the Board of China Bank. Ten years later, he established Universal Robina Corporation (PSE: URC), makers of popular snack food products such as Jack & Jill, Cloud 9 and Great Taste Coffee.
In 1968, he put up his first retail store, Cebu Foodarama.
In 1980, Gokongwei entered the real estate industry by establishing Robinsons Land Corporation (PSE: RLC) which operates on four markets namely: shopping malls (Robinsons Malls), office and high-rise residential buildings (Galleria Corporate Center, Robinsons Summit), private housing (Robinsons Homes) and hotels (Crowne Plaza). It was publicly listed in 1989.
In 1990, the JG Summit Holdings was incorporated (PSE: JGS). It was listed on August 9, 1993 and acted as the holding firm for all of Gokongwei’s companies.
In 1994, the JG Summit Petrochemical Corporation, the first and largest integrated polyethylene and polypropylene petrochemical facility was established In that same year, Gokongwei acquired 20 percent stake in the Toledo Power Corporation.
In 1995, Summit Media was launched with its first magazine, “Preview”.
In 1996, Gokongwei acquired Cebu Pacific (PSE: CEB)with four DC-9 aircrafts. The aviation company claimed the number one spot in domestic market. It had its Initial Public Offering (IPO) on October 26, 2010.
In 1997, Gokongwei Group of Companies entered the financial services by putting up Robinsons Savings Bank, a thrift bank.
In 2000, Gokongwei opened the first Mini-Stop Convenience Store.
In 2003, he launched Sun Cellular under Digital Telecommunications (PSE: DGTL) (acquired in 1993) to compete against telecommunication giants Globe Telecom and Smart Communications.
Politics
Politics is good for second or third generation when the father has built a fortune. Like the Kennedys, or the Roosevelts. The father, grandfather made the money, then the children can become politicians and they don’t have to worry about earning a living. I don’t object if my children run for public office.”
Views
Quotations:
"No risk, no reward"
