STEVEN T. TAN
President, SM Supermalls
“You can expect new offerings that will make shopping, dining and entertainment innovative, safe and convenient. After all, we are dedicated to always changing and always growing with our customers.”
THE first SM store was established in Carriedo in 1958. With a dream to provide every Filipino with a good pair of shoes, Henry Sy Sr. named his store Shoemart, which he envisioned to become a chain of shoe stores.
Shoemart evolved to become a department store in 1972, and it was rebranded as SM Department Store by 1975.
Today, the moniker “SM” has become an integral part of the Filipino mall culture. Aside from the wide selection of shoes and apparel, it has become a cornerstone of retail, entertainment and attractions, embodying its longstanding catchphrase “We’ve got it all for you.”
Tasked with maintaining SM’s legacy of enhancing every shopper’s mall experience is SM Supermalls President Steven Tan, a former hotelier whose career portfolio included hotel properties in Asia including Taipei, Taiwan and Shanghai, China before returning to the Philippines in 2001 to pursue his career in marketing and communications as regional director of marketing and communications at FilBarcelo Hotels and Property Management.
Building a mall culture
Interestingly, one of the properties he handled under FilBarcelo was Taal Vista Hotel, a popular destination property in Tagaytay under SM Investments Corp.
That became his entry point into the SM global conglomerate.
“Through Taal Vista Hotel, I got exposed to the Sy family. After my stint back then in the hotel industry, I was poised to go back to Paris when I received a call from Tessie Sy-Coson, the vice chairman of SM Investments Corp. I think it was around nine in the evening when she called.”
Tan shares that he was caught off guard when she asked if he was interested in working for SM.
“She said I should come to see her the next day in her office, so we could talk further. After our discussion, I accepted her offer and I started working for the smallest SM back then, which is The Podium.”
Tan says that as a Chinoy, he looked up to the Sy family growing up.
“Whenever we would pass by their malls, I would always find myself amazed by how much they changed the lives of Filipinos and started a culture of malling. I would always be reminded of their hard work and perseverance. I imagined myself being mentored by them in the business arena, and I guess it was fate that led me here. I know I am in good hands because of the people who are in the organization.”
After a year of working at The Podium, he was tasked to open the SM Mall of Asia.
In contrast to The Podium, the SM Mall of Asia is the fourth-largest shopping mall in the world.
Tan recalls the challenges of creating an entirely new world-class shopping experience for Filipinos.
“SM Mall of Asia opened in May 2006 as the flagship development of SM on its 60-hectare reclaimed land along the scenic Manila Bay in Pasay City. During that time, our very own SM Prime Chairman Henry Sy called this mall the greatest project of his life, and he had a vision to build one of the largest malls in Asia, which will not just be a shopping complex but a premier destination. We had to reinvent malling itself through SM Mall of Asia. We were to introduce new concepts — the first Olympic-size ice skating rink and the first IMAX theater in the country, a state-of-the-art bowling center — to deliver a unique and leisurely experience that people from all walks of life would really enjoy.”
‘Tatang’
It was “Tatang” Henry Sy Sr. who served as his mentor.
“I remember my coffee sessions with Tatang every afternoon when the SM Mall of Asia was just built. He reminded me that the customer is always king. And to make sure to serve more people and to serve them better, we must cater to their evolving needs in the new environment.”
TATANG KNOWS BEST Steven Tan says that he has learned a lot from his mentoring sessions with ’Tatang’ Henry Sy who kept on reminding him that the customer is always king, and to make sure to cater to their evolving needs in the new environment. CONTRIBUTED PHOTOS
These are lessons he has taken to heart as the group embarks on another ambitious pursuit, which is to make the SM Supermalls brand a household name in China.
“China is a huge market, and we’re a relatively smaller player there unlike how it is in the Philippines. I think that’s the challenge we’ve had when we started SM in China. We have huge competitors there. We also had to adapt to China’s aspirational lifestyle. We’re competing against the booming online shopping industry, and it’s much difficult for us to penetrate the market since nobody knew SM there. So, what we did was to give them more reasons to come and visit us.”
Tan banks on his marketing-savvy skills and launched several programs to make the mall part of the Chinese community, among them is an annual fashion week, which eventually became a major event in the city.
He shares, “We also created more programs for kids knowing that Chinese parents dote on their children so much. We’re very aggressive in putting numerous attractions to make SM in China an entertainment and relaxation paradise for the Chinese market. And until today, we are learning to earn the loyalty of brand-conscious Chinese customers as we further expand our market in the region. Given its huge population and strong consumer spending growth, China is a key overseas market that we will continue developing in the years to come.”
Happy to serve
Tan returned to the Philippines in 2001, fresh from acquiring his Master in Business Administration degree from the Paris School of Management.
“As a young professional then, I was very enthusiastic to contribute to the economy and uplift the lives of our fellow Filipinos. I made sure that if I were to use my skills and abilities, it would be for my country. I knew what I wanted to do and that is giving back to my country, and using the skills and knowledge I earned to make a difference in the lives of my kababayans (countrymen). I’m glad to say that through our work here at SM, my dream to make an impact on the lives of Filipinos is now a reality.”
He describes the country as “in great shape,” saying, “The economy is booming and because of the dynamic growth our country is experiencing, companies like SM are in a unique position to serve as important catalysts of growth and development in the process as they are helping many Filipinos and countless communities around the country experience the promise of a brighter and better future. Knowing this, I am motivated to strive harder, and put my heart and soul in the work we do because we know we are changing lives.”
The pandemic has brought a shift to e-commerce as Filipinos needed to shop safely from home.
Tan shares his thoughts on how brick-and-mortar establishments such as SM Supermalls navigated through change.
“I always say that innovation is part of every industry. E-commerce, for one, is an innovation in the shopping and retail industry. It is not a threat but an upheaval, a solution to the limits of a physical mall. And at SM, we’ve embraced e-commerce in our operations. We pivoted into e-commerce in 2020, then in the latter part of that year, we fully launched the SM Malls Online app. It helped us in tweaking the business during the pandemic. But more than just being able to reach out to our homebound shoppers at the height of the lockdowns, we’ve helped thousands of MSMEs (micro, small and medium enterprises) bounce back which made our e-commerce journey even more meaningful and purposeful.”
He reveals that the SM Malls online app has already served more than a million shoppers.
Future of retail
He talks further about the future of retail.
“As you all know, much has happened since the Sy family has opened their first SM mall, and the retail landscape has become more globally competitive where technology disrupted the way we live and do things, even customer preferences. [At SM], we always pay close attention to customer behavior on both online and on-ground. This is important for us to know what types of services and offerings we should provide our shoppers, and that includes e-commerce.”
He is optimistic about 2023, and says it will be a year of opportunities.
“These are opportunities to take on new challenges and scale new heights; opportunities to make a difference and touch lives; opportunities to expand and grow. We are excited, and I am very optimistic about what the future holds for SM Supermalls. SM will continue to be a place to build connections; but it’s also a place where we can lift each other up, and help MSMEs, farmers and people from many sectors build back better after a period of great upheaval.”
According to him, SM will remain steadfast in its commitment to serving and delighting shoppers.
“You can expect new offerings that will make shopping, dining and entertainment innovative, safe and convenient. After all, we are dedicated to always changing and always growing with our customers.”
