The
Story of the Sweet Tooth:
Alumnus Shares How His Passion For Candies Built An Empire
Ricky
Andres (BS Mgt '92) talks about how he and his wife Bubu
Antonio-Andres (BS ME '92 established Candy Corner, the
country's leading retail confectionary store. Established nine (9) years
ago, Candy Corner currently has more that forty-six (46)
company-owned outlets and thirty-three franchises, with over 300 varieties
of candies in stock and access to over 2,000 varieties of confectioneries.
With its strength in sourcing worldwide and the privilege of getting very
prime locations in most malls, Candy Corner remains to be the
premier source of confectionery for people ages three (3) to fifty (50). Candy
Corner continues to expand nationwide, expanding its market not only
in malls but also in hospitals, schools, and airports. Ricky and wife Bubu
plans to go international by 2008.
Humble
Beginnings
Ricky
Andres and wife Bubu started having their own business when they were
still freshmen at the Ateneo. "We sold shoes and cosmetic organizers in
school [and our] products slowly grew to anything students wanted—from
Banana Republic jeans to Mac lipstick," Ricky narrates. After graduating
in 1992, the couple set-up their formal business and concentrated on
selling toys and novelty items to boutiques and department stores in
Manila. Their focus changed, however, during their buying trips in trade
fairs abroad where they would encounter candy manufacturers alongside toy
distributors. "Since we were already hounded by high freight costs, [my
wife and I] had to find a solution to maximize freight because toys were
packed in bulky boxes (freight is computed by volume)," Ricky explains.
"We then decided to experiment and place the candies inside toy boxes
[and] fortunately, when the goods arrived in Manila, our customers readily
accepted our candies and sold them in their stores," Ricky continues.
Business
went better in 1995 when the couple got the exclusive distribution rights
to Lisa Frank, a stationery line for girls from ages five (5) to
twelve (12). Ricky remembers that they initially had a difficult time
distributing the product so they decided to simply apply in malls for
their retail stores. "It took almost two (2) years when Ayala Center
replied to our application for a kiosk in Gloritta 2," Ricky narrates.
By that time, they already distributed Lisa Frank to SM, Rustan's,
and a number of boutiques in Ayala Center. "When we were awarded the
space, it didn't make sense that we compete with our customers. As an
option, we inquired about the possibility of opening a candy store,"
Ricky adds. The Ayala Leasing Team welcomed their idea and concept; they
were given a space in May 1996 and the store finally open in September
that year.
Confectioner's
Idea
Candy
Corner's confectionery "pick and mix" concept was patterned
after candy stores in the United States and the United Kingdom. Such
concept was very new in the Philippines and that time, so the couple opted
to blend it with what Pinoys were used to such as Hershey's, M
& M's, Hubba Bubba, Bubble Tape, and Bazooka.
"The
beauty of the Pick & Mix concept is the idea of buying tingi.
Customers are not limited to buy in packs, cartons, or bags. Back then,
only sari-sari stores sold tingi while Supermarkets and other retails sold
in packs," Ricky explains enthusiastically. "Even in our stores, we
don't have required minimum purchases. [Customers] can buy as little as 10
gummi bears if that is all they can afford," he adds.
Candy
Corner has also given birth to new concepts transcending the
"candy store" mold. Nuts about Candy is a snack store
targeting theater customers while Snack Shack is a convenience
store offering "to go" hot and cold meals, gourmet coffee to the
fast and mobile lifestyle of working professionals.
Overcoming
Difficulties
"What
really drove us nuts was the extreme difficulty of getting a space in the
malls," Ricky narrates. Such difficulty was rooted at that time with
them not having a strong brand and their concept didn't have a track
record to speak off. He says that leasing managers would just set their
applications aside and prefer known brands and proven concepts. "We had
to pull strings, literally ask all friends, relatives, parents of friends
to help us get appointments with Leasing Managers and have the
opportunity to present our business," Ricky recalls.
It
was really after four (4) years and around twenty (20) outlets that
they were able to overcome such difficulty. It was only then that Candy
Corner proved to be a strong brand, proven concept, and a legitimate
business entity. By that time, the couple would get continuous
invites and prime locations from mall operators.
"In
a way, we had to prove that our business was not a fad and show that we
could continue to build the business beyond its current state. We also had
to establish credibility that we pay rent on time and are able to grow
sales year on year," Ricky explains.
Confectioner's
Secret
"Merchandising has
always been an area of the business that we spend most of our time on.
This has created the excitement and uniqueness of our concept," Ricky
opines. "In a way, I can say that we source aggressively—we search
globally for new and exciting products that meet the taste and
expectations of our market. We then meet manufacturers per country
and assess who can provide us with a good balance of price and
quality," he continues.
The
couple controls the source, pricing and distribution for most of the
products that the company imports. They negotiate per manufacturer for the exclusive
distribution of their products for the Philippines. They also invest
heavily on store design and display, making sure that the store looks up
to date and appealing to their target customers.
Confectioner's
Tips to Young Entrepreneurs
The
company faced an unfortunate incident in September 1999 when fire burned
down their entire office and warehouse. "What we earned and gained since
we started business was gone in two (2) hours," Ricky recalls.
"Nothing was left except the few branches we had in the malls…we had
to start all over and rise from the ashes," he continues.
From
that experience, Ricky Andres learns a lot of things that can help
aspiring entrepreneurs in establishing successful businesses.
"First, trust God, do your best, and work hard. Things will [inevitably] fall into place," Ricky says.
"Second,
invest your earnings." He notes that they were lucky to invest on
a few properties, which they used as collateral for their capital
requirement.
"Third,
be humble and start small. Earning P500 a day is still better than
working eight (hours) for P325," Ricky continues.
"Lastly,
passion will build your business. Despite all the money problems
and the fire, what has driven me to get up and going was the passion for
candies and the love for the business," Ricky ends.