Akari’s Tiu siblings work in harmony

“We are so close that we share secrets even our spouses don’t know about,” says Akari’s Catherine “Cathy” Tiu-Tan, 47, the eldest of seven siblings.

The children grew up in an apartment with their father, mother, and paternal grandmother, who used to be a teacher. Grandma had her own bedroom, the parents had theirs, while in another room, the kids lay side by side on beds and mattresses, talking until Grandma told them to sleep.

Everyone ate and studied together at a round table.  Their mother, Rosario, tutored them at first, while Grandma Anita was in charge of Chinese homework. The kids eventually studied without help, but one thing was constant—they learned together at the same table.

“Big houses separate people,” says Cathy. “We grew up in a small place, so we learned to get along. We enjoy each other’s company. In gatherings, we siblings congregate together, leaving our spouses to chat among themselves.  We lived in a home, not in a house!”

Working with the Japanese

Engineer father Carlos was employed in a firm, but in the 1970s, he decided to do his own family business.  He sold light bulbs, fixtures and other supplies from a Japanese distributor before becoming the exclusive distributor of Toshiba lighting and wiring products.

Toshiba lighting and electrical products barely had a presence then in the Philippines, and it was Carlos’ efforts that made Toshiba a household brand.

Japanese products are renowned for good quality, but they are pricey for Filipinos.  “Japanese are patriotic, patronizing their own products rather than cheaper ones made by foreigners,” says Cathy, “so in Japan, Toshiba sells very well.”

Toshiba lights sell well in the high-end, upscale segment of the consumer pyramid here. But how about budget-conscious consumers who prefer more economical products from other Asian countries?

At the turn of the millennium, the family decided to create its own brand, and Akari (Nihongo for “light”) was born.  However, launching an upstart brand like Akari for the entry-level market had to be balanced with increasing the market share of Toshiba.

“We made sacrifices at the beginning,” says Cathy.

Close as the siblings are, they never took a vacation together for more than seven years.  But the hard work paid off, for now Akari consistently ranks among top sellers in lighting retail.  NXLED (next-generation LED lighting) was launched in 2012.

With Toshiba and Akari, “we have market segmentation,” says Cathy.  “But we have a vision for our family business.  Our dream is not really to be big, immense in size.  We want to be a great one, because a great company endures.”

Through the growth pains of building clients and relationships one bulb at a time, Akari has never compromised quality at the expense of low price.  According to Cathy, Akari remains one of the few lighting companies with in-house quality control inspection.

Synergy

In a great family business, the siblings work together as harmoniously as they do at home.  Right out of college, all siblings did not work for others.  They went straight to the family business.

Their mother certainly made enough hints (“Your sister’s about to graduate, she should start working with us”), but Cathy says all of them felt that it was their duty to give back to the family.

“Besides, all of us are happy to be together.  We enjoy working with one another.  At times, one sibling would tell another, ‘This is the problem, but don’t tell Dad yet,’ and the next day, we’ll just tell Dad, after the problem has been been dealt with.”

Many children today, however, do not want to work for their family business.

“The problem is not with the business, but with the family,” says Cathy, “But children need to think about the sacrifices their parents made for them.  If siblings grow up close, how can they not want to work with each other?”

Brother Christopher is president of the family business, with the other siblings, Christine, Carter, Irene, Grace, all vice presidents in charge of different functions.  Sister Carol started her own accounting firm, serving other clients aside from Akari.

“Synergy,” says Cathy. Synergy, also with in-laws.

“No formalities, but we have an unwritten rule against in-laws working directly in the family business,” says Cathy.  “But we work with them in other ways.”

“We help each other’s families and spouses, without them working with us directly every day.   We care for them, but in-laws did not grow up with us, seeing our good and bad sides.  We siblings are all opinionated.  We argue, but there are no hard feelings.  If we have a bad day, we tell our brother or sister, ‘Not now!  Don’t disturb me!’ Can you really say that to non-siblings?” says Cathy, “They may take it the wrong way and then we have to apologize, but the harm’s done.  What if an in-law gets pregnant or sick, and has to take a leave?  We don’t want to be caught in the middle.”

Synergy, also with the next generation

Cathy’s eldest son aspires to be a lawyer, and if he starts his own practice, Akari can be a client, so can Carol’s accounting firm.

Now that Akari is running well, the siblings can relax a little. They travel together, more than 20 of them, with spouses and kids, though for practical reasons, they take different flights.

The next generation (the cousins) are also quite close.  “We tell all the kids, half-jokingly, to do well in school, so they can build their own success stories later on,” says Cathy.

During vacations, the siblings still work, receiving updates from trusted employees, some of whom have been with them for decades.

Akari’s more than 800 workers receive good compensation, health care, car plans, among other benefits. Some of their kids are scholars of the Akari Foundation.

It is said that the first generation builds the business, the second expands it, and the third loses it. The Tiu family takes comfort in the fact that their family business will defy this belief, since they care about family, and not just business.

The family’s best achievement?

“The next one,” says Cathy.

In memory of beloved family members who have moved on to a better place, the family has established the Akari Foundation, which provides benefits such as health and education, beginning with the company’s own employees who are treated like family.

“Family is what drives us,” says Cathy.  “In the end, what is business for, if not for family?”

Check out Akari on www.akari.com.ph or call 7128888. Tune in next week, as we talk about love in family businesses.

Queena N. Lee-Chua is on the Board of Directors of Ateneo de Manila University’s Family Business Development Center.  Get her book “Successful Family Businesses” at the University Press (tel. 4266001 loc 4613, e-mail [email protected].)  Email the author at [email protected].