He first worked for the SM Group as manager of Podium Mall. Now he leads one of the largest retail chains in Asia. Here’s the story of Steven Tan.
Steven Tan, the dynamic president of SM Supermalls, built an impressive career in the hospitality industry for many years before transitioning to the retail sector. His journey is marked by a relentless pursuit of excellence, an instinct for leadership, and a dedication to continuous learning. With a background deeply rooted in hospitality and a strong understanding of customer experience, Tan has become one of the most respected leaders in the retail sector in the Philippines.
Born into a Filipino-Chinese family, Tan’s education began at Chiang Kai Shek College in Manila, where he completed both elementary and high school. Afterward, he pursued his undergraduate studies at the University of Hawaii in the United States. His time abroad was a transformative period, as Tan became immersed in Western culture.
However, his father, like many traditional Chinese parents, was concerned that he was becoming “too Westernized.” As is common in many Filipino-Chinese families, his parents felt the need to reconnect him with his Chinese roots, prompting them to send him to Taipei shortly after graduation.
Tan moved to Taiwan at the age of 20, and he would spend the next eight years of his life there, from around 1990 to 1998. It was during this period that he entered the hospitality industry, working as a food and beverage management trainee in a five-star hotel, where he learned every aspect of hospitality from the ground up.
By the age of 25, he had become the youngest front office manager for a five-star hotel in Taiwan. Despite his success in the country, Tan felt that something was missing after eight years of working. He realized that he needed to pursue further studies to gain a broader perspective and enhance his skills.
In 1998, following the 1997 Asian financial crisis and Hong Kong’s handover to China, Tan moved to Paris to pursue an MBA. His two years in Paris gave him global exposure and a deeper understanding of business, which shaped his future leadership style. In 2000, after completing his MBA, Tan returned to Manila and resumed his career in the hotel industry with a multinational hospitality group as a regional director.
One of the properties he managed was Taal Vista Hotel, an iconic hotel in Tagaytay City undergoing a renovation at the time. This role brought Tan into contact with the Sy family, the owners of SM, which marked the beginning of his long relationship with the company.
In 2004, after four years with the company, Tan felt that he had reached the top of his game in the hotel industry and began toying with the idea of moving back to Paris to explore new opportunities. However, just a week before his planned departure, he received a phone call that would change the course of his career.
It was Tessie Sy Coson of the SM Group who invited him to work at SM Malls. His first role at SM was as the mall manager of Podium, the smallest mall in the SM Group at the time. Despite its size, Tan showed strong leadership, which was key to its success. This proved his capabilities and led to the promotion of his career at SM.
Today, as the president of SM Supermalls, Tan continues to lead with a focus on innovation, customer experience, and expansion. His career journey reflects his adaptability, his commitment to learning, and his ability to seize opportunities. From his early days in hospitality to his leadership of one of the largest retail chains in Asia, Tan’s story is one of vision, hard work, and perseverance.
How did Tan’s experience in hospitality shape his leadership approach when he began managing malls? What role did mentorship, particularly from the Sy family, play in Tan’s career development? What can young professionals aspiring to achieve career success learn from Tan’s journey?
Here are the five business lessons everyone can learn from Steven Tan, president of SM Supermalls:
1| Know how to lead and stay focused amid uncertainty and challenges
Focus provides clarity in decision-making. When a leader is focused, they can sift through the noise of external pressures, doubts, and distractions, keeping the project’s goals and priorities in sight. Without focus, leaders may be tempted to make impulsive decisions in response to uncertainty, which can steer the project off course.
Focused leaders bring consistency and direction to a team. During periods of uncertainty, team members often look to their leader for reassurance and stability. A leader who stays focused can set a clear path forward, helping to calm fears and reinforce confidence in the project.
Tan was initially managing a small mall, Podium, but when presented with the opportunity to lead the Mall of Asia project, he quickly adapted to the new scale and complexity. Even when tenants doubted the location, he adapted by showing the space and convincing tenants to join. His ability to solve problems and shift perspectives in the face of challenges was important.
Tan took on the challenge of opening Mall of Asia, an unproven venture in a remote area with very little development surrounding it. His willingness to embrace uncertainty and take risks, even in the face of criticism, was key to his success. He didn’t shy away from the unknown but instead took the opportunity to prove himself.
A significant part of Tan’s success lies in his ability to remain focused amid the negativity. He trusted the vision of the Sy family and stayed the course, with a strong focus on executing the project rather than letting fear or external doubts derail him. His clear vision guided the project to success, as Mall of Asia became one of the most successful malls in the Philippines.
“I was the mall manager of Podium, the smallest mall in the SM group at the time,” Tan says. “You had big malls like Megamall, North Edsa, and SM Manila during that time. Podium was very small then, and I was running it. After a year, in late 2005, Hans Sy called me into his office and said, ‘Okay, we need somebody to open Mall of Asia. Can you open it for us?’ It wasn’t a question, it was, ‘Open it for us.’ It wasn’t a choice, it was like, ‘Do it.’ So, I was doing my own thing in that small mall called Podium, and then they asked me to open the biggest mall in Asia. It was a daunting task, to be honest.
“But when you’re young, you don’t think too much. You just go with whatever. I was in my mid-30s actually. You just go for it. I don’t know, I just said yes to it and started working on it. Were there challenges? Of course, there were. There were a lot of challenges, and people were doubtful. You know, how would SM do here in Mall of Asia? There was nothing around us, it was all cogon grass. There was only the church, and that was the only structure aside from a flat, one-story warehouse-looking office in front.
“So when we even showed spaces to tenants, they would ask me, ‘Who’s your market? Where would your market come from?’ Some tenants even laughed at me, saying, ‘Maybe it’s the fish who would come to your mall.’ It was a daunting task and I was scared. Such a big responsibility was given to me. There were a lot of people, even my friends, who would call me and say, ‘Steven, I think you know, that would be the end of SM.’ You know, some people even said that it would be the end of the empire. They even said that when Mall of Asia opened, the business would just go down. Of course, you get scared, right?
“But we opened it, and on day one, it was swamped with people. You cannot imagine that day—May 16, 2006. The whole mall was full of people. All the restaurants were packed. There were no spaces to eat. People were buying from the restaurants and eating in the common areas—that’s how successful it was. It’s been operating for the past, what, nearly 20 years? And it’s one of the most successful malls in the country, if not the most successful mall in the country right now, right?
“There was a lot of negativity around Mall of Asia back then. But for me, I just focused, stayed focused, and my guiding lights have always been the Sy family, especially Tatang. They’ve invested billions of pesos. Would a wise businessman, the most successful businessman, invest in something that would lose? That alone, for me, was already guidance.”
2| Know how to reinvent and build long-term business viability
Consumer preferences shift, new technologies emerge, and market conditions evolve. Businesses that embrace change and reinvent themselves can meet these new demands. This approach strengthens their ability to attract and retain customers. Adaptability keeps the business relevant and enables it to innovate and take the lead in the market.
Strengthening a business for the future often requires reassessing strategies and exploring new markets. It can also mean enhancing the customer experience by offering more personalized or innovative services. These proactive measures help the business stay competitive and attract new opportunities.
Tan’s ability to anticipate market trends and adapt to consumer preferences set him apart as a forward-thinking leader. He did not merely manage the malls but took clear steps to elevate them by “premiumizing” their offerings. This strategic approach attracted global brands and upscale dining, which secured SM malls’ competitiveness as the retail landscape evolved.
Tan recognized the rise of online shopping and shifts in consumer behavior, which led him to future-proof the business. He increased the food mix in SM malls from less than five percent to 30 percent, which helped transform the malls into destinations where families could gather and enjoy meals—something online shopping could not offer.
Tan faced a monumental task but recognized that he was not alone in the effort. He worked closely with the Sy family, particularly Tessie Sy Coson and Hans Sy, to ensure their collective vision was carried out effectively. His ability to align with leaders who shared similar values enabled him to draw on their guidance and expertise, which helped push the business forward.
Tan’s work was not about short-term gains but about securing the future. Every decision, from increasing the food mix to upgrading tenant offerings, was made with an eye on the long-term viability of the malls. His commitment to building “premier malls” with global brands and aspirational offerings ensured that SM malls would remain relevant and attractive for years to come.
“A few years after the opening of Mall of Asia, in 2008 or 2009, I got a message from Tessie Sy Coson to have lunch together,” Tan says. “While we were talking, she posed a question to me: ‘Why don’t you want to move to head our leasing?’ At that time, I was handling the Mall of Asia, and she wanted me to handle the leasing for the entire group. I said, ‘If I do that, I don’t want to sit behind a desk. I want the action, I want the vibrancy of running the shopping center.’
“She then paused and said, ‘Okay, let’s do it this way. Manage all the big malls, and let’s ‘premiumize’ them. Let’s call them the premier malls.’ That was the day the ‘premiumization’ of SM started. It was actually her idea; I was just a tool. So, she assigned me to it. At that time, I was handling Mall of Asia, and Megamall was added to my area of responsibility, along with North Edsa.
“We were also planning to open Aura and the Mega Fashion Hall. So that’s how it all started. We premiumized these malls—premiumizing meaning we really upgraded them, both the look of the malls and the tenancy mix, making them aspirational. That’s why we were able to bring in all these global brands and nice casual dining restaurants.
“We also made a conscious move to increase the food mix to 30 percent. It’s about future-proofing your business, right? When I joined SM back in 2004, the tenants in the food mix of the shopping centers were less than five percent. Right now, it’s already 30 percent. But that had to be done intentionally and with a program. You can’t just keep changing it because some provisions are needed, like water lines, exhaust systems, and other infrastructure.
“If the space is assigned for a boutique, you have to add those provisions. There are also contracts that end, so you have to come up with a program. Those were the first things we did—we improved the food mix. Why? I think the group, headed by Hans and Tessie at that time, saw that you have to make your malls into places where people will dwell. That’s why we increased the food mix.
“We infused a lot of casual dining options that families could share in, and we made it aspirational. Imagine if we hadn’t made that move—our mix would still be less than five percent. What would happen to our mall? Right? Because right now, online shopping is gaining traction.
“Aside from increasing our food mix, we also increased our focus on wellness, health, and wellness. Health and wellness is a category that has always been growing. Before, if you talked about services inside a shopping center, maybe 20 years ago, it was only beauty parlors, right? But now, you can do waxing, chiropractic services, and so much more. There’s a wide range of services available now. That’s why we also expanded the health and wellness offerings in our centers. Those were some of the things, I think, that the management saw how to future-proof our centers.
“And after that, one thing led to another. In 2019, they decided to appoint me. At the end of 2019, Hans spoke to me and said, ‘Okay, Annie Garcia, who is my predecessor, was already retiring, and they needed someone to be the president of the shopping center company.’ He said, ‘We will make you the president and you will run our business.’ So, that’s really how all these things happened.”
3| Know how to elevate customer experience and build strong brand loyalty
When businesses take the time to understand and address the specific needs and preferences of their customers, they create a more satisfying experience. High levels of satisfaction lead to positive feelings about the brand, which encourages customers to return.
Brands that focus on enhancing customer experiences often create emotional connections with their customers. These emotional bonds can result from positive interactions, personalized services, and effective communication. When customers feel valued and understood, they develop a deeper loyalty that goes beyond mere transactions.
Consistently meeting customer expectations helps establish trust. When customers see that a brand is committed to their needs and consistently delivers on its promises, they are more likely to feel secure in their choice of that brand. Trust is a critical component of loyalty, as customers are more likely to stick with brands they trust.
Tan’s understanding of customer experience, rooted in hospitality, allowed him to prioritize customer needs. He recognized that good customer service goes beyond simple greetings; it involves creating an environment where customers feel comfortable, safe, and valued. By emphasizing ease of access and comfort within the malls, he ensured that customers enjoyed their time there, which is important for repeat visits.
Tan emphasized the importance of attention to detail in improving the customer experience through the introduction of features like perforated ceilings, which reduce noise levels and create a more pleasant shopping atmosphere. He prioritized cleanliness by ensuring that facilities such as bathrooms remained well-maintained, as these basic elements significantly impact customer perceptions.
Tan valued open communication with tenants and recognized that a successful mall operation relied on strong relationships. By building rapport with brands and their owners, he created a collaborative environment that addressed challenges effectively.
His focus on aligning the mall’s vision with that of its tenants ensured their success and directly contributed to the mall’s overall performance. By actively seeking to understand tenant needs and offering guidance, Tan not only strengthened relationships but also enhanced the customer experience and satisfaction within the mall.
“I tell you, almost all business is about customer experience, and the hospitality business really focuses on customer experience,” Tan says. “Whether it’s hotels or airlines, they really focus on it. So, I just put that in a different context for the mall and ran it like a hotel. That way, you have personalization and attention to detail.
“First, attention to detail. It’s not just about customer service being about saying good morning or good afternoon. It’s really about the ease and comfort of your customers when they enter your centers. People think that good customer service is just about greeting them or saying ‘hi’ or ‘Mabuhay’—but that’s only a small portion of it.
“For me, the essence of good customer service in a shopping center context is making it easy for your customers to visit your centers, move around, and feel comfortable, safe, and enjoy their time while inside. I’ll give you an example: if you go to our shopping centers now, you’ll notice perforated ceilings. Those are all acoustics, which for me is part of the customer experience because it absorbs the noise. So when you go around and shop, you don’t feel it’s noisy. The sound of people talking is minimized, and that’s comfort, right? Also, cooling comfort—some competitors might have warmer temperatures, but ours is always controlled at around 23 degrees (Celsius). That’s cooling comfort.
“Clean bathrooms, working escalators, and the selection of shops, for me, that’s also a form of customer service. You can go to a shopping center and get whatever you need and whatever you want. Those are really part and parcel of what makes up that so-called customer experience.
“I’m sure you’ve seen how SM malls have evolved in terms of design and architecture, right? We are also very fortunate that the Sy family is very hands-on when it comes to the design of our centers. The whole family discusses it, and I’m part of the team that looks into the design.
“Do you know why our malls are designed like a box? Because it’s about ease and comfort. So that you don’t get confused. That’s customer service. But again, what tweaks have we made? You’ve seen Aura, right? Aura is still a box, but you don’t feel it because it’s sleeker—it has curves. So that’s some of the innovations we’ve done—making the ceiling higher, making the hallways wider, but still ensuring it doesn’t confuse people. Easy navigation is something we really focus on. We don’t like secondary hallways.
“You always want to provide the best and most enjoyable experience for your customers. Sometimes, if the vision with your tenants is not aligned, you will encounter issues because you’re often at the mercy of your tenants, as they are the ones managing the day-to-day operations of their stores. We manage the whole mall.
“For me, the solution there is open communication. You get to know the brands that are inside your centers. Know the owners, communicate with them. It’s more tiring because there’s a lot of communication, a lot of guidance also that you need to impart. But I think that is one of the, I would say, trade secrets, really. Communications and relationship with your tenants.
“Establish good relationships so that when you encounter a problem, you could communicate with them easily. There are some operators who just lease out a space and then, bahala na kayo. But not SM, we were asked to really make sure that the tenant, when they get into your centers, they’re successful. That they could do good business. If they are not doing well, sit down with them, try to understand them, and try to guide them as well.”
4| Know how to keep up with market trends to ensure business growth
Market trends often reflect changing consumer preferences and behaviors. By staying attuned to these shifts, businesses can adjust their products, services, and marketing strategies to align better with customer expectations.
Identifying and capitalizing on emerging trends allows companies to differentiate themselves in the marketplace, attracting new customers while retaining existing ones. This agility can result in increased market share.
Moreover, monitoring market trends fosters a culture of innovation within an organization. Businesses that adapt to changes are more likely to create new products and services that resonate with their target audience.
Tan employs a strategic approach to enhance the SM malls experience by leveraging changes in market trends. He emphasizes the advantage of having a presence in China, a hub for retail innovations, which enables SM to exchange ideas and learn from leading market practices. By staying attuned to shifts in consumer behavior—such as the growing interest in collectibles and hobbies over traditional luxury brands—Tan tailors the mall experience to attract customers with engaging offerings.
Tan also emphasizes the importance of agility and responsiveness in the retail landscape, noting that trends evolve much faster today than in the past. This requires businesses to act swiftly to remain relevant. For Tan, enhancing the customer experience is important, as it cannot be replicated online.
Tan’s adaptability enables him to pivot in response to changing market dynamics, ensuring that customer preferences remain a priority. He maintains a customer-centric focus and recognizes that meeting customer needs proves critical for success.
“We’re very fortunate that we have a foothold in China, and China is always ahead when it comes to retail,” Tan says. “The retail business, especially in the past 10 years, has evolved so much. We’re very lucky to have a presence there because of our shopping centers in China, which allows us to exchange ideas and learn from them. What’s trending? It’s all about that.
“Sometimes people will say, ‘Baka uso lang yan, baka malaos yan,’ and so, right? But you still have to offer it to customers to make your malls more exciting, right? Retail business has been evolving and is still evolving right now.
“Case in point: I was in Hong Kong over the weekend. What I saw on this trip was very different from what I saw on my previous trips. I noticed a lot of traction in terms of collectibles and hobbies. There were no more lines at the big luxury brands.
“Before, you’d see long lines outside luxury stores, but this time, there weren’t many lines—actually, there were no lines over the weekend. But there were a lot of people inside the stores focused on collectibles, hobbies, and things like Pokémon, for example.
“You see, in the retail business, you always have to keep your ears to the ground. It’s not about you, it’s about your customers. What are they looking for? What’s trending, right? So you always have to be quick and agile. You know, things have changed, and it’s faster now than ever. Before, if you said a trend would change every five years, now it’s much shorter. That’s why you always have to act quickly to stay relevant.
“You see, in all your travels, you always learn something. It’s impossible not to learn anything at all. It’s just about how you look at it—what’s your perspective, right? Do you see the glass as half-empty or half-full? But there are always learnings. For me, China is one of the places we always try to learn from. Korea is another place with a lot of new formats for retail. And also, Bangkok.
“But you know, to stay relevant, especially in retail, it’s all about the experience. There are a lot of things that online will never replace or replicate. It’s really about the customer experience. It cannot be replaced. Customer experience cannot be done online. It’s the knowledge and interaction with people talking to you over the counter.
“For example, especially for ladies—where for men, all lipsticks might look red, but for women, red has maybe 50 shades, right? The knowledge that a salesperson can impart, like saying, ‘Oh, your skin is fairer, so this shade would suit you better,’ or ‘This stays longer,’ and all those details. It’s that interaction between two human beings that cannot be replaced.
“But also, you should never disregard the importance of online business. You should give options for customers to choose from. That’s why we also launched SM Malls Online. So, if they go on the SM Malls Online app, they can choose from multiple tenants—like I buy from Din Tai Fung, Tim Ho Wan, Manam, or Abe—and then have it delivered with one delivery fee. That’s SM Malls Online, as long as the stores are inside a shopping center.
“For us, it’s about multiple shops. You can consolidate everything and have it sent to you with one fee. So, that’s how it works. The contribution of online isn’t that significant yet, as people still prefer to shop in person. But you still give them options. I think everyone should embrace digitalization, whether it’s in the format of online shopping or couponing. Now, couponing is no longer paper-based—they send it to your cell phones, and you just download them.
“With regard to shopping, retail—specifically, clothing retail—there have also been some shifts. You can see that the active lifestyle category has been growing. In the past, when we talked about brands like Nike and Adidas, you had to be an athlete or involved in sports. But now, that has become part of everyday life. You wear sneakers to work, right? You go out wearing jerseys or running shorts, not because you have to work out to wear them, but because it’s part of your daily wardrobe.
“There has been a shift, and as a mall operator, as I’ve said earlier, you always have to keep your ears on the ground. Know what’s happening in the retail industry. It might be something you personally like, but again, it’s not all about you. It’s about your customers. What are they looking for? What do they want? Give them what they want.”
5| Know how to find value in mentorship and experience
Mentors offer invaluable knowledge and experience that enable mentees to avoid common pitfalls and make informed decisions, accelerating their personal and professional development.
Through mentorship, individuals gain access to diverse perspectives that challenge their existing beliefs and assumptions. Learning from a mentor’s experiences broadens understanding and promotes critical thinking.
After the opening of the Mall of Asia, Tan had the unique opportunity to receive mentorship directly from Henry Sy, the founder of SM. Their regular coffee meetings allowed for a personal exchange of wisdom and ideas, which Tan considered more valuable than an MBA education. This hands-on mentorship offered him practical insights into the business.
During their discussions, Sy provided valuable insights into customer behavior. By emphasizing these interactions, he encouraged Tan to explore ways to enhance the mall’s tenancy mix, which ultimately led to strategic decision-making.
Beyond operational advice, Sy imparted important life principles that significantly shaped Tan’s leadership style. He emphasized the importance of fairness and the need to treat tenants as partners rather than mere renters. This approach builds a sense of community and loyalty, which is essential for the success of mall operations.
Tan’s commitment to mentorship goes beyond his current role. He plans to continue consulting and sharing his insights even after retirement, which reflects a deep appreciation for the value of mentorship and knowledge transfer in developing future leaders in the organization.
“Throughout my entire career, people have asked me if I would have wanted to move into the mall business earlier,” Tan says. “I said no. I believe someone from above really prepared me for that. That’s why I was working in the hospitality business for maybe 10 to 12 years. They prepped me for something bigger. That’s like the building blocks of my career, with no regrets. And I think that’s what they saw in me—that I was able to bring to the table. My background in hospitality really helped me.
“I was very fortunate because when we opened Mall of Asia, the founder himself, Tatang, had more time. By then, he was already retired and in his early 80s. His mind was still sharp, although he had difficulty walking at that time.
“Every single afternoon at around 2:30, he would come to Mall of Asia. He would ask his secretary to give me a call and ask me to meet him at Starbucks. When I arrived at Starbucks, my coffee was already there waiting for me. He would ask the secretary to buy my latte, which I always ordered, and then we’d have coffee together for 30 minutes. Those moments were even more valuable than any MBA could offer. And that went on for almost a year.
“For almost a year, every afternoon, randomly, he would share nuggets of wisdom like, ‘Steven, look at how our customers move around. There’s the husband and the wife. The wife would go into a boutique, and the husband will feel bored and wait for her. Why don’t we capitalize on that?
“Find something the husband would enjoy so that the whole family can be engaged when they come together.’ That’s how we do tenancy mix now. Those were all insights he passed on. That’s why we have Ace Hardware and other gadget stores—because the men gravitate toward those while the women gravitate toward boutiques, right?
“And then the whole family would eat together. Those were just some of the things he imparted to me. But aside from that, he also shared life principles. He would always remind me to do the right thing. Sometimes, he would lose, but the most important thing is to do what is right. Be fair. Be fair to your tenants. Treat your tenants as partners. Don’t treat them as just renters. Take care of them because, without tenants, a mall is just four walls and a roof.
“The most important thing, I think, is to do your job with purpose. There’s no meaning in any job if there’s no purpose. You know, I’m human too. I get tired. I get frustrated. There are ups and downs. But when I’m at my lowest, I always think, if I give up, what will happen to the people who rely on me?
“When we open a shopping center, the first thing that excites me is how many jobs we can create in that area. How many small businesses can we populate or help? Don’t forget that almost 80 percent of our tenants inside the shopping center are MSMEs. Only 20 percent are big corporations. 80 percent of those small carts, kiosks, small stores, and small restaurants are all MSMEs, but they also hire people from the local community.
“A mall is a microcosm of all these small businesses. That’s my purpose. That’s something I always think about. I get excited by our growth, not just because of financial gains, but also because of how many people we can help in that community and locality.
“I’m very, very fortunate to have bosses like Tessie, Hans, and even Mr. Big Boy. I work closely with the three of them. I can text them any time I want, and they always reply. They can text me as well, and there’s no barrier, which makes it much easier to work.
“Most likely, even when I retire, I’ll still be consulting with them and remain part of the team. As long as they need me, I will be forever grateful to the family for giving me this opportunity. Even after retirement, I would want to continue consulting for SM and impart the knowledge that I have.”
