Leading notebook-maker ventures into new fields

Chief executive Henry Lim Bon Liong

Sterling Group is a diversified group of companies primarily involved in selling stationery. It is now into retailing, agriculture research, and call center operations. Chief executive Henry Lim Bon Liong, a Harvard-trained entrepreneur who is also the executive vice president of the Federation of Filipino-Chinese Chambers of Commerce and Industry, shares his insights on his group’s focus on competing via differentiation.

Question: Your notebooks are doing well despite being priced at a premium. What made you decide to focus on the upscale market with various brands?

Answer: Consumers today are more mature and buy intelligently. They do not just buy a product even if it is the lowest priced. They look for value and differentiation. Each Sterling notebook is value for money due to the high quality standards that we adhere to: from the design stage where we carefully study what is in tune with today’s market to choosing high grade paper and the production quality standards that our notebooks go through.

Many consumers feel an emotional connection to our Sterling notebooks. They practically grow with it. It all starts with attractive character designs that appeals to the children’s market (like Hello Kitty and Naruto) and when they turn into teens, they move to our original designs like “smart lines,” which is an expression of how today’s youth feels. When our consumers become adults and then become professionals, they still go for the classic Sterling notebook or the more modern Sterling fonts.

Q: What’s the inspiration behind opening more than 50 Expressions stores?

A: We want to give the consumers more choices on where to shop for school, office and art supplies. Expressions offers not only Sterling products but also a complete assortment of school and office supplies that are also affordable. Expressions is also about expressing yourself through arts and crafts. We offer an array of artistic tools that will allow students and even adults to create just about anything they have in mind, not only for school projects but also as a means of relaxation that inspires creativity. One can simply grab a cup and fill it up with colorful beads of their choice to use for their scrapbooks, bracelets, keychains and other trinkets. It’s almost like having a candy station of beads.

Q: Rice is a P500-billion industry a year and you have branded a commodity “Doña Maria” as a premium brand. While still far from your 20% market share goal, what have you done right so far?

A: Doña Maria has raised the standards of what consumers should look for in rice. Our “Jasponica” and “Miponica” rice varieties are hybrid, meaning putting the best qualities of rice and coming out with a superior breed that is sticky, highly aromatic and delicious. Furthermore, we have made packaged rice readily available to housewives. It is now convenient to buy small packets of 1-kilogram, 2-kg and 5-kg rice, unlike a few years ago where one had to buy in sacks.

Due to the busy lifestyle of people nowadays, our consumers do not hesitate to pay a little more for the Doña Maria brand that guarantees not only the best-tasting rice but also the cleanest and most hygienic rice due to our stringent quality standards. It’s literally from the rice seed to the rice bowl, as SL Agritech supplies the seeds to contract growers and we do our own milling, packing and distribution, thus assuring quality at every step.

In addition, we have brought our rice closer to the consumers as we are not only available in all leading supermarkets but also in most wet markets. We even have our own online store supply central, where the consumer can simply buy online and have our Doña Maria rice conveniently delivered at his or her doorstep.

Q: You are now testing “Willy’s Farm,” another premium rice brand. What unmet needs are you trying to satisfy?

A: Willy’s Farm is a variety of rice for a wider market segment. It is mainly targeted to meet the market demand for good Dinorado-type (native upland) rice.

It is a variant that is more affordable to the mass market, yet we maintain the high quality standards that SL Agritech has been known for. Simply told, we are giving consumers more choices and allowing SL Agritech to reach a wider segment of the premium market.

Q: You like to talk about competitive advantage, how does that apply to your diversified group, which also includes industrial subdivision and a call center business? How are they all connected?

A: Our corporate strategy places primary attention on nurturing the success of each business unit. We always reinforce our competitive strategy in the various businesses where we have diversified. We have entered into the industrial subdivision business due to the growing need for safe and convenient manufacturing locations of businesses.

On the other hand, our call center operations have always been personalized as we seek to understand the unique needs of our various clients in the areas of lending, mortgage, research and surveys, insurance, automotive and telecommunications. Our call center has also found a niche in the inbound food delivery services.

Conveniently located at the heart of the financial and central business district of Ortigas, the Sterling Global Call Center is very convenient to reach for most of our customers.

(Josiah Go is chairman of marketing training and advocacy firm Mansmith and Fielders Inc. For a full transcript of this interview, as well as interviews with other thought leaders, visit www.josiahgo.com.)