Cebu-based holding company sustains stewardship in business amid coronavirus pandemic

THE global pandemic came as an unexpected curve ball that sent economies around the world struggling to comprehend and eventually manage an unknown health crisis coupled with increasing uncertainty brought about by a domino effect of market disruptions.

Cebu was no exception. The Covid-19 pandemic sent not only industries and businesses, but also individual livelihood, on a downward spiral. Philippine unemployment increased drastically from 4.5 percent in 2019 to 8.7 percent in 2020 and reached a peak of 8.9 percent in September 2021, while tapering off at 6.6 percent by December 2021. The 2020-2021 period was “one for the books.”

More than two and a half years later, as the country transitions into a post-pandemic environment, businesses have had to re-evaluate the way they operate, assess what worked and what needed to be improved or outright discontinued, while maintaining business continuity and sustaining employment for the workforce, and indirectly, the households and families that depend on them, despite the mounting challenges.

In a way, the pandemic separated the men from the boys, and revealed strength of character, uncompromising values and well-grounded, solid foundations that helped withstand the most disruptive global crisis in recent history.

Cebu-based holding company, the LH Paragon Group, with businesses in fashion retail, wood distribution, real estate, food distribution and healthcare services, shares how the group navigated through the pandemic and embraced innovations to weather the storm headstrong and come out stronger amid the crisis.

Stewardship in business

In an interview with SunStar Cebu, LH Paragon Group chief finance officer Edmun Liu, repeatedly emphasized a key guiding principle handed down from the group’s founders that has been ingrained in the group’s core values, helping steer the group’s decisions day in and day out—stewardship.

“It all goes back to stewardship. As good stewards, we have the responsibility to leave this world a better place than when we came in, even if it is just one life made better, one person who breathes better, then that already makes a world of difference,” Liu said.

Multiply that by the more than 6,500 employees the group has across its businesses, and the impact of sustaining livelihoods amidst the crisis has never been more largely felt. Throughout the pandemic, the LH Paragon Group has adapted to changing consumer behaviors with innovative solutions that allowed the businesses to shift gears and steadily gain and gradually increase momentum.

Preparation, innovation, adaptability

Even before the Covid-19 pandemic hit, as good stewards paving the way for the future, the company had already set the foundations to future-proof operations to deliver better customer experiences across its businesses. The pandemic just fast-tracked and accelerated certain efforts and revealed key opportunity areas, especially in the digital space as consumers shifted to online channels due to the lockdowns.

“When the pandemic happened, we accelerated a number of things. We discarded things that are no longer applicable. It goes back to being prepared, having the right mindset, and a long-term vision. These are all part of good stewardship,” Liu said.

For instance, the group’s fashion retail arm, Golden ABC Inc., has since diversified into omni-channel platforms aside from brick-and-mortar stores to reach a growing online consumer-base.

“Investing in omni-channel platforms and a world-class distribution center has allowed the Penshoppe Group to increase their online market share several times over pre-pandemic by delivering to customers despite the stores being shut down. This allowed us to remain present in our customers’ lives even without them having to leave their homes, and that further strengthened the level of trust and confidence in the brand,” Liu said.

For Matimco Inc., the group’s wood distribution arm, the company recorded consistent revenues despite the pandemic.

“As a result of the lockdowns, more and more people gravitated towards home improvement and even second homes for their extended family, allowing our wood business to continuously innovate in terms of design and space solutions for various requirements,” Liu added.

In real estate, Oakridge Realty and Development Corp. prioritized the health and safety of all guests, tenants and employees by ensuring optimal air quality in enclosed spaces through multiple Energy Recovery Ventilation Systems installed in critical enclosed areas to allow fresh air ventilation and optimize overall air quality while using energy saving technology. Oakridge also responded to the growing demand for safer dining spaces by repurposing its enclosed event spaces like the Oakridge Horizons and Oakridge Pavilion into alfresco restaurants, now known as Oakridge Horizons Café and the newly reopened Oakridge Pavilion Garden.

In the food business, the homegrown Cebuano brand 10 Dove Street Restaurant and Confectionery quickly shifted to online and mobile deliveries, reassigning teams to becoming customer service and delivery teams to bring the experience straight to the customers’ homes instead.

Acknowledging the largely underserved primary healthcare sector, the LH Paragon Group entered into a joint venture with Spain-based Keralty Group in December 2020 to form Keralty Prime Cebu Inc. (KPCI). Combining Keralty’s over 50 years of global experience across seven countries, the group aims to strategically expand across the country to bring affordable, innovative and globally competitive primary healthcare solutions to every Filipino.

KPCI currently operates three clinics in Cebu in the cities of Mandaue, Lapu-Lapu and the Municipality of Consolacion.

“We should never waste a crisis. We realized that we should not be too attached to a particular way of doing things. We need to constantly adapt to what’s new and what’s innovative, and what would eventually help us to become better stewards. The best thing we can do is to be prepared. Be resilient. To adapt to the habits, routines, and learn new skill sets that would help us prepare better. It’s all about building a strong foundation,” Liu further shared.

Above all, vision and values

In his book Let Us Dream, Pope Francis says: “The basic rule of a crisis is that you don’t come out of it the same. If you get through it, you come out better or worse, but never the same.”

Beyond the businesses, the LH Paragon Group continues to impact communities through its philanthropic arm, LH Foundation Inc. At the height of the pandemic, LH Foundation Inc. has been at the forefront of Cebu’s Covid-19 response in the creation of the much needed isolation facilities, swabbing centers, and in the rollout of the national vaccination initiative alongside public-private partnerships like Bayanihan Cebu and Project Balik Buhay.

Today, LH Foundation Inc. continues to support programs and projects across its four main advocacies: religious, education, medical and heritage.

While the pandemic caused global pause and several unexpected curve balls, it has also revealed simple truths that cuts across individuals, communities, industries and even economies.

For the LH Paragon Group and its businesses, it was not rocket science that allowed them to steer their way and navigate through the crisis. It was going back to the basics, reinforcing more than ever, the vision and values of the Group’s Founders, Knight Leo Lim Liu and Dame Norma Liu, who have set the foundations for the businesses more than 50 years ago, and are now being continued by the second generation of leaders led by group chairman Bernie Liu.

These values of good stewardship, God-centeredness, and building a strong foundation anchored on trust and integrity and being of service to the community allowed the group to chart their course efficiently and steer their way towards sustained growth for the many years to come, crisis notwithstanding.