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April 06, 2010
The Big Idea
Heart and Sole
For centuries, animal skin has been a staple material for both shoemakers and bag designers. These days, however, leather is stretching its use from fashion accessories’ main skin to a base ingredient for corporate giveaways and office supplies like executive folders and organizers.
MAPHISTO Men’s Sandals in maroon and black
Manels Leathergoods Corp.’s foray into company souvenirs is reminiscent of a risk that it took in the 1970s, when Manuel and Nelia Siggaoat opened the first Manels store despite having little experience in selling leather goods.
After getting their bearings in the business, the couple ended up expanding their first retail shop by setting up their own shoe and bag factory.
"They didn’t want to be middlemen anymore so my parents opted to make their own leather products. This also allowed the company to grow faster and control the quality of its goods," said Mark Juanino V. Siggaoat, corporate head for Human Resources and Information Technology for Manels Leathergoods Corp. and sales director for Manels Leather Asia, Inc., the sister firm that takes charge of Manels’ customized corporate products.
In time, increased production capacity allowed the company to enter the wholesale market. "There were inquiries about buying in bulk and personalizing. And because we have our own factory, we saw it as an opportunity because we also needed to identify new channels to sell through," explained Mr. Siggaoat. It entertains annual orders for wallets, key chains and planners from clients like Shangri-La hotels, GlaxoSmithKline and Banco de Oro.
Three decades into the business, Manels remains a family-run firm. The Siggaoats let their four children into the venture early by giving them jobs at the shop during their summer breaks from school. Mr. Siggaoat, the youngest of the brood, started to work in the factory when he was just seven. "Even after weÕve started our own careers, the business was always an option that was open for us," he said.
When the time came for the siblings to take over the company, each was assigned a post based on his or her skills and work background. "They considered our track record, like what course we took and what job experiences weÕve had." The parents have held on to their roles as key decision-makers, attending the weekly meetings and deliberating major expansion plans.
"We’re still in transition, but they have let go of it more than they are holding on to it. It’s the challenge faced by [all] founders," said Mr. Siggaoat.
The brood isn’t alien to the pros and cons of working in a family business, either. Mr. Siggaoat admits it is a constant challenge to keep his professional and personal relationships compartmentalized. "Sometimes trust and love get in the way. But as a family you are solid, you know that your ties are strong, and you are always looking out for each other, especially when a decision has to be made," explained Mr. Siggaoat. Work-related issues are always considered a routine hurdle that the family can solve together.
These days, Manels is busy developing new brands: Moda Plus, an apparel line for plus-sized women, and Catch, a casual version of Manel boutiques that aims to cater to a younger crowd. Mr. Siggaoat’s pet project, Lap Dance Bags, currently supplies laptop totes to Apple stores.
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