Building to Last: Lessons in Long-Term Business Partnerships
In a fast-changing business landscape, forging the right partnerships can mean the difference between short-lived success and lasting impact. Last July 8, the Australian-New Zealand Chamber of Commerce Philippines (ANZCHAM) gathered industry professionals for a fascinating session focused on fostering partnerships in the Philippines, which uncovered some insights and strategies that make for resilient collaborations.
Led by ANZCHAM’s Executive Director, Kimmi Siu Dewar, the event highlighted a compelling talk from a seasoned finance professional who had roles in Strategy, Mergers and Acquisitions (M&A), and Investor Relations, and has also been involved in Operations, Sales, and Marketing. Timezone Philippines’ Chief Commercial Officer (CCO), Juan Miguel Crisostomo, shared the inside story of their company’s long-standing partnership with major conglomerate, Ayala Corporation. The talk, set in one of Timezone’s main stores in Greenbelt, Makati City, pulled back the curtain on what it takes to sustain a mutually beneficial relationship in the local business ecosystem.
A Partnership that Thrives on Trust, Complementary Strengths, and Aligned Goals
For over 27 years, Timezone Philippines has successfully operated in the country and has grown to become the leading venue in family entertainment with over a hundred stores nationwide! Even after a global pandemic, they managed to survive and even improved the brand in succeeding years, introducing bigger and better stores, as well as new products and attractions such as VR (virtual reality) technology and venue rentals.
Originally a company from Australia, how did Timezone manage to perfectly fit into the local market landscape like it had always been there? The secret lies in their acute choice of partner.
“27 years ago, Timezone was expanding outside of Australia, and they just completed a successful expansion in Singapore and Indonesia, and so they’re looking for the next country they want to go into,” Miguel shared. “As a gaming company, they wanted to partner with landlords because they know the landscape, they know the footprint. From Timezone’s perspective, we needed to partner with landlords because it’s always easier to partner than start from scratch.”
So Timezone made its way to the Philippines, and here’s a fascinating tidbit: they actually met up with SM Group first, but it didn’t work out. Miguel then told us about how Ayala was a good choice because they were also hoping to expand, highlighting that a good partnership thrives on synergy, complementing strengths, and an alignment of goals.
“Any landlord we could’ve partnered with would’ve given us a good understanding of the landscape, but Ayala brought something different. They’re a big conglomerate, so it’s easy to set up shop,” he said, stating that the company was able to provide them with the support they needed, including HR and regulatory support, as well as connections within and beyond the Ayala group.
“They’re also our customers,” he added. “For example, corporate events like this are a big push for us. Before we came up with this product a year ago, you barely saw venues close down like this.”
Miguel mentioned how the Philippines is a “mall culture,” which was a huge factor in their success as a brand in the market. People here spend most of their time inside massive shopping malls to pass the time. Families, specifically, would choose this as their main bonding activity, and would either go see a film, browse through stores, or find some other kind of family-friendly entertainment. Ayala Group owns several malls, which benefit Timezone’s business goals. Not only are they able to give them a place with potential foot traffic, but the business itself complements Ayala’s other business models. You might have noticed that wherever there’s a Timezone store, a food place is always nearby, as people would most likely want to eat before or after they play games. The business draws a lot of foot traffic for the landlord’s food partners, so it’s a win-win for both sides.
“It was easier because we had complementary strengths,” he said. “It would be a little bit more difficult if you didn’t have the same positive attributes because it would be ‘My way is better than your way.’ They knew where we should be, which locations, where to expand, how big the venues should be, and even which complementary stores should be beside us. They also trusted us to run the operations of the business.”
Ayala has also proved to be a partner who not only works in its best interests. Miguel shared that what sets the conglomerate apart is its ability to encourage growth and how they had always been forward-thinking.
“They genuinely want to see the growth of the business. They’re not a dictator. Initially, we were only in Ayala Malls, which makes sense because they’re our owner. But then, after a while, they have to think of the bigger picture in the long term. If they were just thinking about the Ayala Malls business, it’d make sense to just keep us in our malls, but they wanted us to grow as a business.”
Currently, Timezone can be found not only in Ayala properties but also in other major shopping venues such as Robinsons Malls and SM Malls. The CCO also revealed that they’re looking into provincial malls so they can bring the product to more families outside Metro Manila.
After all these years, even as Timezone has grown bigger and stronger in the Philippine market, it’s a surprise that they chose to remain in a joint partnership with Ayala. In fact, they’re the last in the region to operate this way, with most of their Southeast Asian neighbors already having been bought out. When asked what made this situation different, Miguel answered:
“It all boils down to relationship and culture. When I first came in, it was very clear that these are people who enjoy working together. Yes, there are tough conversations, and getting approvals is always a struggle, but you’re still having conversations. Whether good or bad, both sides genuinely enjoy having conversations or looking towards the long-term prospects of the business.”
“The reason why we’ve grown so fast is because we complement each other,” he added, further emphasizing that a great partnership is when you’re pivoting together towards the same goals. “We’re not a landlord expert, we’re not a developer. The same thing with Ayala, they also don’t want to get into our business. I think they’ve figured out that it’s more beneficial for us to stay together rather than to have one of us run the business.”
Towards the end, attendees were asked for a word that would best describe what makes a strategic partnership successful. Amid words like diversity and alignment, trust had the most votes, which Miguel agreed to a hundred percent.
“You can’t have a relationship if there’s no trust. Trust doesn’t mean letting each side do what they want to do, but is more like when it comes to a tough decision, you trust that each side has not only invested in the corporate aspect, but the business itself.”
To further explain what it meant to invest in a business, the executive told us about the one question Ayala always asked them, which was the reason for their continued growth and good relationship.
“They always ask us, 'Where do you want to be? Where do you see Timezone in the next two to three years?' They’re not like we’re happy with what we have going on. We’re now at 50 main stores — in total, we’re close to a hundred, and they can be happy with that. They can go and do the same things over and over, but just the fact that they ask the questions: What’s next for us? What’s the next step? What’s the next jump? Where are we going from here? They’re not thinking short-term, they’re thinking long-term. They’re committed to growing and helping us grow the business.”
Of course, their healthy and beneficial partnership isn’t the only thing that has made Timezone thrive in the Philippines. We believe that it’s also the nature of the product that contributed to its success. From being a simple arcade with mechanical and electronic entertainment machines, Timezone has elevated its services to cater to a wider audience and more needs, such as corporate professionals looking for team-building activities and families searching for venues to host birthday parties and other occasions.
“It’s a product that works across countries. It’s a consistent product. Timezone is not just about the games or the best attractions, but the guest experience. We create memories for all of our guests — not just kids but adults as well.”
For more information about the Australian-New Zealand Chamber of Commerce Philippines (ANZCHAM) and its events, visit their website and follow them on Facebook and Instagram.
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