The COVID-19 pandemic changed countless lives all over the world in myriad ways. While this change could not always be articulated, it was in some cases best expressed by actions rather than words.
“Everybody was touched by the pandemic in some way,” says Raul Joseph ‘Jojo’ Concepcion, Chairman and President of Concepcion Industrial Corporation (CIC), a leading provider of home and enterprise solutions appliances to the Philippines.
“It changed life as we knew it. Many in society, especially business leaders, are still navigating the change. And in CIC, leadership is one of the critical shifts we considered.”
To Concepcion, it was a case of do or die.
“Succession planning suddenly became critical,” he says. “There was so much uncertainty, business models were distorted. What made it even more difficult was that transitions happened during the most challenging time in modern history, in a moment when leadership, talent and experience were needed most.”
Planning for the future
It’s a question faced by CIC itself. From its establishment in 1962, CIC was a purely family-owned and operated business. That changed in 2023, when Concepcion took the unprecedented step of separating the company’s Chairman and CEO roles, offering the latter to Ariel Fermin.
“Markets change, but what matters most is building the right people and leadership to keep the business strong over time,” Concepcion says.
He found that element in Fermin. A seasoned executive with notable names such as Coca-Cola, Nike, Unilever and Procter & Gamble on his CV, Fermin came with experience in brand management, product development, supply chain and retail and sales management.
“I was very lucky to find Ariel, who’s very capable,” Concepcion says. “There are many family businesses that give the keys to their children who may not have the experience, capabilities or maturity to run things.”
“Markets change, but what matters most is building the right people and leadership to keep the business strong over time.”
- Raul Joseph Concepcion
After a year-and-a-half as CEO, Fermin has helped CIC transition from a family-led company to a professionalized entity prepared to face the future.
“First of all, it’s proper for me to express how honored I am to be part of this group,” Fermin says. “When you look at the name Concepcion, there’s so much respect across the Philippines.”
That likely has something to do with CIC providing world-class air conditioning products for over six decades to a country not known for its harsh winters. In addition, CIC has brought brands including Carrier, Toshiba, Otis and Midea to Filipino homes and businesses.
But Fermin says that personally, he was won over by Concepcion’s humility.
“Jojo recognized that change was required, and that there were huge upsides,” he says. “The foundation was strong, and I felt I could help him.”
Building quality growth
Together, the pair have worked to strike a balance between continuity and renewal. It’s a line not easily walked.
“We’re in a unique position where we can benefit from both sides. We have the values and the purpose by which this company was founded, and we can innovate to pursue our commercial goals of doubling returns within five years,” Fermin says.
“We aren’t going to lose sight of that purpose Raul’s grandfather had 63 years ago. I don’t say this tongue in cheek, but growth is easy. It’s quality growth that’s difficult to achieve. If we’re going to chase our goals, it has to be done without losing sight of our purpose. That’s why I find Jojo so inspiring. We’re all inspired by him every day.”
Concepcion is the last of his family line in the business. Changes are made by a board, of which he is Chair. But Concepcion is very conscious of letting others in leadership do their jobs.
“We don’t believe in micromanaging,” he says. “Our approach is to forecast and review strategically – but with seven businesses under one roof, navigating complexity is part of the job.”
Advertisement
While the methods may have changed, the Concepcion goal remains: to improve the lives of Filipinos through innovation and technology. This means making these available to as many people as possible.
“Last year we expanded our portfolio with more brands, including SharkNinja, a premium brand offering practical solutions for everyday life,” Concepcion says. “There’s a big market for that.”
The new brand’s line includes small domestic appliances including beauty care products. It’s not a road CIC would traditionally have taken, but Fermin and Concepcion agree it’s a brave new world.
“There’s a lot of promise there,” Fermin says. “We’re building the brand, so let’s see where this goes.”
Concepcion says it’s a point of difference he’s proud to wear.
“Customer intimacy is what we anchor ourselves on.”
- Ariel Fermin
“As we move on from the pandemic we ask, ‘What will differentiate us from the competition?’ We’re strong brand builders, with top air-conditioning and refrigerator brands, including leading global names that we build locally. We also take pride in our homegrown brand, Condura, which now ranks among the top five appliance brands in the country,” he says.
“We’ll continue strengthening our core brands, but our direction has evolved. We’re now focused on delivering lifecycle value – offering complete solutions that meet our customers’ needs at every stage.”
Fermin believes that by touching Filipino lives in so many different ways, the future of the company is multidimensional.
“We’ve never defined our business in terms of products. We define our business in terms of customers. Customer intimacy is what we anchor ourselves on,” he says.
“When we choose not to limit ourselves to air conditioning and refrigerators, we’re ready for any possibilities the future might bring as a company that’s known not just for serving the customer, but understanding them more deeply than the rest.”
