At 70, this hardware mart has hardly gone rusty
The early 1950s was a period of rapid growth and reconstruction in the Philippines, which was getting back on its feet after the devastation caused by World War II.
And it was during this time of great demand for building materials and equipment that spouses Demetrio and Leonila Bautista set up their small hardware store on what used to be Avenida in Manila in 1955 with P10,000 in capital and just one employee.
They called it Fil-American Hardware, riding on the extreme popularity of everything American during those heady times.
From the beginning, the hardworking couple from Penaranda, Nueva Ecija, ran their business with integrity, putting the customer front, end and center of their operations.
Their single-minded dedication to their mission to be a dependable and trusted partner of customers, suppliers and associates allowed Fil-American Hardware to stand out in a field that was dominated by the Filipino Chinese community.
Slowly but surely, the Bautistas’ reputation for quality service and integrity won for them exclusive supply contracts with top foreign brands over the years and a growing and loyal customer and partner base.
From retail to wholesale
Those close relationships were maintained even after leadership was transferred to the founders’ son, John Sr.
It was during John’s time in the 1970s when Filam expanded from mainly retail to corporate sales.
He had met the manager of what used to be the Export Processing Zone Authority and saw the opportunity to sell hardware products in bulk, thus the pursuit of contracts with government organizations and with large contractors.
With this, Filam—which operates shops in Cubao, Quezon City, and Filinvest, Alabang—became the hardware of choice of some of the biggest names in the construction industry, including D.M. Consunji Inc., Megawide Construction Corp., EEI, Sumitomo Mitsui Construction Co. and Filinvest Land Inc.
Next generation
Now, it’s the turn of the third generation led by John’s eldest son, Jay, eldest daughter, Mia, and youngest son, John Jr., to preserve those invaluable relationships and make their own mark in the history of Filam, which is turning 70 years old in 2025.
The siblings are united in their desire to continue the family legacy of customer satisfaction by providing clients top-quality products at the best price.
Jay tells Sunday Biz that they are fortunate because they were able to work closely with their father for years before they took over the bulk of the day-to-day operations.
This way, the values were inculcated and the siblings likewise learned how to work well together and thus avoid the pitfalls that had plagued other family-run corporations.
There were clear roles for each one that were set early on, so it was not as difficult to identify the succession plan. Also, the transfer of the reins of power was discussed while John Sr. was still very active in the business; thus, he was able to closely supervise the needed transition from the second to the third generation.
“Another reason for the successful transition was an open and transparent communication with each member. Collectively, each put importance on being a family throughout this process,” Jay says.
Which is not to say, however, that everything was smooth sailing. Far from it.
Digital era
Jay explains that they had to convince their father, for example, to experiment and venture into other directions, such as taking Filam online.
John Sr. was understandably skeptical, but that expansion in 2018 proved to be a wise decision as e-commerce became a lifeline during the COVID-19 years when traditional, face-to-face transactions shut down and commerce shifted online.
When the shutdowns happened, Filam was more than ready to service orders from people and companies who needed hardware and construction materials, such as for quarantine facilities.
“We became essential. Good thing that we had evolved to meet the changing needs of our customers. We have always been about service, rather than just the product because hardware stores generally will sell the same thing,” explains Mia.
The siblings are likewise bent on keeping their relationship with the corporate clients, who today account for some 80 percent of their annual turnover. Filam, for example, is heavily involved in major infrastructure projects such as housing and railways.
Continuing the legacy
“We’re very lucky that we have repeat customers through 70 years. We really take care of them, which is why even if there are always new players, we continue the relationship until today,” says Jay, who believes that they should continue to run Filam like a family that includes not just the Bautistas but the around 100 employees in its fold.
As they continue on their trek toward the century mark for Filam, Jay says they will rely on the values and way of doing business that was laid in the beginning by their grandparents and continued by their father.
Reliability, good credit and good relationship with both suppliers and customers. These are what will sustain them moving forward, says Mia.
“And internally, we are building a strong culture of family, of sharing the same values, goals and ideals by a team we call Filamilya,” she adds.
Then for John Jr., he takes to heart an important lesson from his father to always be present. Success does not come to those who lead from a distance. They have to be there in the trenches with their people.
“Work has to be done firsthand. Another key aspect is leadership development, where we were involved in the decision-making process while simultaneously receiving mentorship,” he says.
“And lastly, we have to be resilient and adaptable. We have been in the business for so long and have experienced numerous challenges like the pandemic, the financial crisis. Being able to adapt and grow from these challenges has been the key to our success,” adds John Jr.
