Financial Adviser: 5 Business Lessons Everyone Can Learn from Jimmy Thai, Co-Founder and CEO of Primer Group

Financial Adviser: 5 Business Lessons Everyone Can Learn from Jimmy Thai, Co-Founder and CEO of Primer Group

Jimmy Thai and his childhood friends Jerry, elder brother Johnny, along with two others, began their distribution business as a part-time venture. They started by importing various goods to earn extra income, leveraging their jobs and salaries from their family businesses. This small venture set the foundation for what would become a significant enterprise in the Philippine retail market.

In 1988, an important opportunity arose when a friend of Johnny introduced them to a contact from Singapore seeking a distributor for their luggage brand, Samsonite. Thai and his partners embraced the one-year trial deal, selling Samsonite at Landmark in Makati. Despite the challenges posed by military coups and kidnappings the following year, Thai not only met but exceeded their sales targets. This success secured a long-term partnership with Samsonite, marking a significant milestone for their business.

With the long-term partnership in place, Thai decided to leave his finance job at Gotesco to join their startup, The Primer Group, on a full-time basis. This transition allowed Thai and his team to focus entirely on growing their business. Over the next 16 years, they built the Primer Group's success on the foundation of their Samsonite distributorship.

In 2008, the Primer Group faced a setback when they lost their Samsonite distributorship. However, Thai’s resilience drove him to pivot and expand the business with new concept stores and brands. He introduced stores like Travel Club, R.O.X., Rest Toe Run, and Flipflop. Additionally, he added renowned brands such as Tumi, Delsey Paris, Birkenstock, Herschel, Jansport, Rockport, and Columbia to their portfolio.

Today, the Primer Group is one of the largest retail companies in the Philippines, boasting over 400 outlets. Thai’s strategic expansions and diversification efforts have solidified the company’s position in the market. The group’s success is a testament to their ability to adapt and innovate in the face of challenges.

Building on the success of The Primer Group, Thai also plans to venture into the wellness business. He is bringing the Singaporean brand Eu Yan Sang to the Philippines and launch their own lifestyle product brands. This move reflects Thai’s vision to diversify and tap into emerging market trends.

How has The Primer Group grown under Thai’s leadership, and what factors contributed to its success? What strategic moves did Thai make to diversify The Primer Group's portfolio?

Here are the five business lessons everyone can learn from Jimmy Thai, co-founder and CEO of Primer Group:

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1| Know how to recognize and seize business opportunities

Businesses that are opportunity-driven tend to cultivate a resilient mindset. This culture of resilience encourages continuous improvement and adaptive thinking, making the organization more capable of handling disruptions.

This mindset builds a robust framework where agility becomes second nature. Companies that prioritize seizing opportunities often have flexible processes and a dynamic workforce that can quickly adjust to new demands or challenges. This adaptability ensures that the business can maintain its operations and even find new growth avenues during economic downturns or industry disruptions.

Thai’s journey began with an opportunistic mindset. Recognizing the potential in a casual meeting, he and his friends seized the chance to distribute Samsonite products. This demonstrated their ability to spot and act on opportunities that came their way.

Thai and his team had a keen understanding of market trends and demands, which helped them see the potential in becoming exclusive distributors for Samsonite, a brand previously available only through a department store. This strategic thinking led them to transition from mere trading to a more structured business model. They recognized the need for marketing and pricing strategies, transforming their approach from one-time deals to formal distribution.

The high pricing of Samsonite products and a coup d’état posed significant obstacles. However, with support from their Singaporean mentor, Thai remained focused and adapted to these tough conditions, ensuring the business stayed afloat. This resilience was evident as they explored political instability and high product prices. Despite these challenges, Thai’s team persisted, showing their commitment to overcoming adversity.

"There were five individuals when we started this business," Thai says. "We would just hang around like barkada in 1984. The five of us had individual businesses and careers, but because we often hung around together, we decided one time and said, ‘Okay, mag sideline na lang tayo,’ so we started dealing and trading. We would trade anything for additional income so we can have cash to spend for gimmicks. We were in our late 20s during that time.

"After a couple of years, we chanced upon a Singaporean who met one of our partners, Johnny.  His name was Gary who was the distributor of Samsonite for Malaysia and Singapore. They exchanged cards, and Johnny asked, ‘Oh, you're from Samsonite? You know the brand?’ Gary replied, "Yeah, familiar with attaché cases and suitcases." Then Gary asked, "What do you think? Is there a market for this?" because at that time, only one well known department store was doing it as a retailer, not an exclusive distributor. They buy from the Samsonite US then they sell it in their store.

"But, at that time, the market was starting to globalize, they discussed about distribution so Johnny said, ‘Oh, Jim, better meet this guy. He's talking about distribution.’ I remember as we started, we were just trading, you know, whatever we could make money from. We would import what the market wanted, then sell by bulk. It was very transactional. When this opportunity came, we realized it was more than just trading; it was about distribution. We needed marketing, pricing, you know, the four Ps. We thought maybe it was time to formalize our business beyond just one-time deals. This was our opportunity to look at it as a more mainstream business. So that's how we started.

"In 1988, we started testing the market. At that time, we didn't really have track records, because our company was trading, not marketing. An executive from Samsonite US came to see us, interviewed here and there and our Singapore contact told him, ‘I know these guys are young, they're hungry, you know? Give it to the boys and I’ll be their back up. They will really push.’ Year one was to test market and we opened our first store in Landmark. It was a 15-square-meter concession corner inside the department store. We went into Landmark because no one wanted to buy wholesale, outright kasi the price was high.

"It was challenging in the beginning because of the high pricing of our products. Hindi naman marami nagta-travel noon eh, but we have to really explain to people until the market accepted it. Then pinasukan kami ng coup d’état in 1989 kasi the military took hold of Landmark eh.

"Sabi namin, ‘Naku na-ransack na yung mga goods natin. First shipment pa naman. Patay na.’ Our first serious venture was already being challenged. But our Singaporean contact, who eventually became our mentor, was very supportive. He said, ‘Okay, calm down, calm down. Just steady there.’ He supported us kasi sobrang leap of faith nga eh. It was a very tough environment at that time. Di ba we had brownouts and also kidnappings? But we were able to hurdle that. I said somehow there was a divine intervention. I would say we exceeded their expectations during the first year. After the test market, we became official."

2| Know how to use retail channels to scale new brands

Leveraging retail platforms allows new brands to tap into the established customer bases of these platforms. This immediate access to a large and diverse audience significantly increases the brand's visibility and market penetration, helping it gain traction faster than through standalone efforts.

Associating with well-known retail platforms can boost a new brand's credibility. Consumers tend to trust brands featured on reputable platforms, which can lead to higher conversion rates and brand loyalty. This trust is important for new brands trying to establish themselves in a competitive market.

Recognizing the importance of having multiple sales channels, Thai and his team began distributing Samsonite products on consignment to department stores. This move ensured that their products were available to a broader audience without the need for immediate capital investment.

The idea to open The Travel Club was sparked by attending a trade show in Las Vegas. Thai envisioned a curated store that offered a variety of travel-related products, not just Samsonite, to provide a comprehensive travel lifestyle experience for consumers. This forward-thinking approach allowed them to differentiate themselves in the market.

The Travel Club served as an incubation platform for new brands. By bringing in different brands and testing the market response, they could identify which brands had potential for further distribution. This methodical approach ensured that they were investing in brands that had already shown promise.

"When we had Samsonite, sabi namin ang hirap magbenta kung wala kang channels, so we started distributing it to other department stores by consignment," Thai says. "Then SM built Megamall. The idea of opening a store came when we attended a trade show in Las Vegas showcasing all the luggage. We thought, ‘Why don't we see this brand in the Philippines?’ That gave us the idea to open The Travel Club in 1992. In our store, Samsonite was the anchor brand and we had other brands, mga accessories, konting backpack. It was curated for travelers. We wanted to offer the consumers variety.

"We were not selling just a brand; we were selling a travel lifestyle. So we curated the offerings, and later on, we expanded the concept. The Travel Club was about being a luggage store. When we started bringing in different brands, we tested the market. If the response was very good, then we considered the brand for distribution, not just for retail. So that's how the business evolved. We used our concept as an incubation platform for new brands.

"During that time, our Singapore mentor started introducing us to his Singapore network. He told them, ‘If you want to enter the Philippines, I have somebody to do it for you.’ Because at that time, when they acquired the brand, it was always about the region, Southeast Asia region, Indonesia, Malaysia, Singapore.

"So among his friends in Singapore, ‘Kung gusto nyo pumasok sa Pilipinas, I know somebody who can do it for you.’ At that time, not many Singaporeans wanted to come here kasi yung balita nila about kidnapping, mga ganon. So he introduced us to his network in footwear, and that’s how we got to distribute the brand Kickers. He also introduced us to his other brands, sa mga bags and even non-consumer items.

"At that time, wala naman kaming formal designation eh. Kung ano kailangan, somebody had to do it.  ‘Oh, sinong may kaya? Sige, ikaw Jerry sa importation, Johnny wala ka kasi sideline, so tindahan ka, magbantay ka ng tindahan.’ The only time we came together and everyone went full-time was around 1992, at the time we put up The Travel Club. We grew beyond just the Samsonite luggage store. When we had the distribution of Samsonite and Kickers, people started to ask Primer to represent them. Marami nang inquiries, and it grew very fast from ‘92 to ‘96.

"We became the licensee of Disney Apparel, Warner Brothers, then we had Jansport. Kami naging distributor until today for the whole region. In 10 to 20 years, we became quite well established already. We already have, hindi lang tindahan, or brands, but presence in the Southeast Asia region.

"We grew beyond Travel Club; we now have about five to six concept stores like R.O.X, yung nagbebenta ng mga outdoor stuff. We have Bratpack, it’s a different concept store, then we have this store that sells  footwear called Res Toe Run. We also have some action sport stores named Grind. We also have mono brand stores if you're in the market such as Columbia, North Face, Birkenstock, Flipflop. Overall, we have close to 500 stores."

3| Know how to discover emerging brands in a competitive market

In a crowded market, standing out is essential. Emerging brands often offer unique products or services that established brands may not provide. By identifying and integrating these brands, companies can create a unique selling proposition (USP) that distinguishes them from competitors.

Emerging brands typically represent new or underserved market segments. Investing in these brands early can lead to substantial growth as these segments develop. Diversifying the brand portfolio with emerging brands reduces dependency on a single product line or market segment, spreading risk.

The primary method for identifying emerging brands is to closely observe consumer trends. Thai and his team look at what is currently popular among consumers and what new brands are gaining traction. This involves continuously monitoring the market and staying updated on the latest trends and preferences.

Once a potential emerging brand is identified, Thai's team incubates it, providing the necessary support and resources to help it grow until it becomes mainstream. This involves strategic planning, market-testing, and adaptation based on consumer feedback.

Emerging brands are chosen for their flexibility compared to established brands, which often have rigid requirements and approval processes. This flexibility allows Thai's team to be more creative and responsive to local market needs. They can adapt global strategies to local contexts effectively.

"It’s a collective effort," he says. "Spotting new brands is a collective effort but si Johnny yan for most of the brands. He would say, ‘Jim kukunin natin ito, its emerging.’ I would say mataas ang batting average nya. We look for what we call emerging brands. We look at the trends of the consumers, ano ang trends ngayon? Ano mga bagong brands?

"So we always look at the trends of the consumer and Johnny will say, ‘I think this is a good bet,’ and I would say for those unknown brands, as emerging brands yan. So we incubate them until they become mainstream.

"It's an art to spot an emerging brand, but the real hard work comes in nurturing it. We consider ourselves a brand-building management company. Brands go through cycles, and as distributors rather than brand owners, we serve as an extension of the brand.

"The brand's direction often changes with new owners or CEOs, and if the brand becomes stale, it starts to decline. Our experience with Doc Martens is an example. During the ‘80s and ‘90s, they were strong but didn't want to change, eventually becoming irrelevant. It wasn't until new owners injected money and innovation then the brand was revived.

"Brands have cycles, and it's an endless process of innovation. You can't rely on a single strategy forever. We adapt to global directions and strategies, and our role is to localize them effectively. We are proud of our achievements. Representing several brands in the region, we have accumulated many awards for distribution, such as Kickers, North Face, and Jansport. This success made us realize our potential.

"When we were growing, our Singapore friends suggested that we take over their business in Malaysia and Singapore. We tried and succeeded. Some businesses we bought out, while others were handed over to us, with introductions to the brand owners. This recognition led us to successfully pitch for the whole region.

"Our closest competitor, on the other hand, doesn't distribute outside the country. Their brands are significant, but their strategy differs. We focus on emerging brands because they offer more flexibility, whereas established brands have rigid requirements. This flexibility allows us to adapt to local markets more effectively.

"Emerging brands offer more flexibility, and their owners are more lenient. Established brands are very rigid. You cannot do this, you have to do that, and you have to get approvals. I think that’s also the case when we look at McDonald's and Jollibee. McDonald's needs approvals for everything, while Jollibee knows the market better.

"For new brands emerging and trying to compete with established brands in the Philippines, we do lots of marketing, educate the consumer, and engage more at the grassroots level. Fortunately, we have talented marketers in our group. These young guys, if you give them a blank canvas, they create more because they are not restricted like they would be with established brands like Nike.

"We also face challenges in protecting our investments. When you spend a lot of time and resources on an emerging brand, you have to ensure it doesn't get handed over to others. This requires strategic planning and constant vigilance."

4| Know how to adapt and thrive during crises

Crises often force businesses to think outside the box and develop innovative solutions to new problems. This can lead to improvements in products, services, and processes that might not have been considered otherwise, giving the business a competitive edge.

Crises can uncover new opportunities for growth. By adapting, businesses can explore new markets, diversify their offerings, or pivot to new business models that may be more profitable in the long term, setting the stage for sustained expansion.

Thai demonstrated resilience by quickly recovering from setbacks. When they lost the distribution of Samsonite in 2008, they didn't dwell on the loss. Instead, they secured Tumi in 2009, showing their ability to bounce back and maintain momentum. This resilience ensured the business continued to grow despite significant challenges.

After losing Samsonite, Thai didn't wait for opportunities to come to them. They actively pursued other brands and secured Delsey and several other luggage brands. This proactive approach diversified their portfolio and reduced dependency on a single brand, thereby spreading risk.

Adaptability was a key trait for Thai. Instead of sticking to a single strategy, they pivoted when needed. After losing Samsonite, they shifted focus to other sectors, including outdoor and footwear, leveraging strong brands like North Face, Columbia, and Fitflop. This adaptability allowed them to tap into new markets and grow their business in different directions.

Thai turned crises into opportunities by being opportunistic. The loss of Samsonite led them to seek and secure new brands, turning a setback into a growth opportunity. By actively pursuing other brands and expanding their portfolio, they leveraged the situation to their advantage, demonstrating their ability to see and seize new opportunities during crises.

"After 20 years, we lost Samsonite," Thai says. "They took it back. These are part of the business hazards, eh, wala kang magagawa dyan. Because we lost Samsonite in 2008, we got Tumi in 2009, but at that time, hindi pa kay Samsonite yun. Samsonite bought Tumi in 2014, and we had already been with Tumi for five years. Then akala namin we were going to lose Tumi, pero when I met them, sabi nila, 'We're gonna continue with you.' That’s probably because we still have that reputation. In business, credibility and reputation are very important.

"Of course, when we lost Samsonite, we felt bad. That’s a natural emotion, but as we say, in every crisis, there's an opportunity. That's where we started. We began talking to other brands and secured Delsey, along with several other substantial luggage brands. At that time, although we lost Samsonite, we already had North Face, Columbia, and Fitflop.

"We realized that we needed to build on our strengths, particularly those that foreigners lack, like being closer to our consumers. We know our consumers better, which is an advantage. We established many concept stores kasi kailangan nila ng channels eh. We created 50 Travel Clubs and built our platform.

"We offer a combination of mono brand and concept stores that allows for coexistence. Mono brands like North Face and Columbia have their own stores but are also present in R.O.X. Currently, we have a popular brand, Lojel, with stand-alone stores and availability in the Travel Club. By opening concept stores, we strengthened our platform. So, maski na pumasok sila, they still need our channels.

"In 2008, we already had four concept stores: Res Toe Run, Bratpack, R.O.X and Travel Club. They were jut a few stores pa lang pero after we lost Samsonite, that’s when we started to expand. We added a lot. We were not only focusing on luggage. We also looked at outdoor and footwear where we already have strong brands.

"We knew from the very beginning that the brand is only on loan to us. We're not the owners, right? So, you just do your best. As I said, brands have cycles. Don't fall in love with them. If they are gone, of course, masakit, but you have to let go and move on. Losing a big brand is nothing new to us.

"Sometimes when we lose a brand, we can still continue selling it on our platform, in our stores, but no longer as a distributor. So, that's where you negotiate the terms. There's an upside and downside. You lose the distribution, but someone else takes over.

"We always have to be proactive when looking at one brand. We learned from Samsonite dati, ‘Uy ang laki ng percentage nya.’ We need to ramp up other brands and concepts to grow faster. Now we have to grow faster, but that doesn't mean we have to deliberately water down Samsonite. Instead, we focus on ramping up the other brands.

"After this, we're now launching the next level. Our mantra is to educate our people. It's all about our own IP. Yung concept stores are our own intellectual property. Dati, we were just an extension of the distributor. After 10 years, we realized that we often made unknown brands popular and successful, tapos nawawala sa amin. So, we decided to start buying emerging brands. For about two to three years, we started accumulating global brands and making purchases.

"When we buy the brand, we become the brand owners. No brand has their own factory except Birkenstock. Lahat ng brand. Samsonite doesn't have factory. Jansport doesn’t have a factory. Nike wala silang factory. We just bought the IP.  When you own the brand, it requires a different skill set because you have to do your product development.

"When we come up with name for our concept stores, we do it as a group. We do brainstorming pero normally yung pangalan galing kay Jerry. For example, yung Res Toe Run. Why Res Toe Run? Kasi res kasi we have a lot of slippers eh, mostly casual, so pag casual, pang res lang.

Then the toe is the open toe, yung mga sandals open toe. Run is the sneakers that you need for running. Kaya Res Toe Run. Three category yun eh. R.O.X naman stands for Recreational Outdoor Exchange.

"You know, you have to stay relevant eh. We always look at the consumer as the center. So alam natin in the last few years, healthcare has become a major focus, especially during the COVID times. Naging health-conscious ang mga tao—weight loss, exercise, and all these things. So we thought, we should enter into this category. That's how we evolve, no? We constantly evolve."

5| Know how to promote collaborate decision making and prepare for the next generation

Engaging in collaborative decision-making builds trust and strengthens relationships among business owners. It encourages open communication, mutual respect, and a deeper understanding of each other's viewpoints and values.

By involving all owners in the decision-making process, conflicts can be addressed and resolved more effectively. Collaborative approaches help in finding common ground and developing solutions that are acceptable to all parties involved.

Preparing the second generation for leadership roles ensures the continuity and stability of the business. It helps in maintaining the business legacy and prevents disruptions that can occur during transitions.

Training and integrating the second generation help in preserving the knowledge accumulated over the years. This knowledge transfer is crucial for maintaining the business's core values, culture, and operational expertise.

Thai emphasized the importance of avoiding a calculative mindset among the team members. By not focusing on who does more work or who earns more, Thai encouraged a culture where everyone contributes without keeping score. This fostered a more collaborative and harmonious work environment.

Even though people identified Thai as the group CEO, he did not hold a formal title and did not emphasize hierarchy. This approach promoted equality among the founders, making it easier for everyone to participate in decision-making processes without feeling overshadowed by titles.

Thai recognized the need to adapt their partnership constitution to accommodate the second generation. Given the different backgrounds and dynamics of the next generation, Thai involved them in rewriting the constitution. This inclusion ensured that the new policies would be relevant and acceptable to all parties.

The second generation worked under the supervision of managers, not directly under the founders. This structure helped them integrate into the organization without causing disruptions and ensured they learned the business from the ground up.

"I think because we started as friends muna eh, barkada gaya ng sinabi ko and then of course, we have been working together for 40 years na," Thai says. "When we work, we try to avoid being calculative kasi kung calculative ka ‘bakit trabaho mo konti lang? Ang dami trabaho ko? Bakit mas malaki sahod mo? Ako ganon lang? Bakit kagabi I worked up to 12am pero you guys went home na by 5pm?’ Things like that.

"People identify me as the group CEO, pero wala naman talaga kaming formal title na group CEO. By default, people just say, ‘Oh, si Jimmy na lang dyan,’ pero I don't care about the title. If I give you my business card, walang title ang business card ko. Each one of us has their own functions.

"Remember, we are five. We always vote, majority prevails. Anyone can make a proposal, then we deliberate. Sometimes the vote comes out 5-0, sometimes 0-5. Basta, if it’s 0-5, we don't proceed with it, tapos.

"Today, it's a bit different because before, gut feel lang tayo eh—'Puede bang kumita dyan? Ano bang kikitain?’ Ngayon, meron na kaming formal investment committee so may mga backup data na and may study na kailangan. This committee is composed of professionals, not founders. If they recommend, it goes to the excom and the board.

"We are now rewriting our partnership constitution kasi now the second generations are already in the organization. We're rewriting kasi ang background nila at saka dynamics very different from us. Remember us ha, we were friends, eh sila hindi naman eh, ibang barkada lahat eh.  But now they come into this organization, syempre it's not easy for us to accept each other, right? Saka iba yung interest nila so we are rewriting and we're involving them.

"When our second generation apply for work with us, they have to go through a process. First of all, they have to apply. Then they have to get the blessings of the founders parang sabihin ng founders, ‘Okay lahat ng founders nagbigay ng blessing, pwede ka pumasok.’

"Pag di ka nabigyan ng blessings di ka pwedeng pumasok. Kasi ganito yun eh: even pumasok ka, anong position mo? Right now, the second gen work under our managers. Hindi naman kami yung bossing eh. They work under their supervision."