50 years later, the legacy of Emilio S. Lim lives on
After half a century, Emilio S. Lim Appliances (ESLA) proves its strength even more in self-financed and personalized installment sales of basic appliances in Metro Manila and surrounding provinces. By providing a ordable appliances to customers through monthly installments, the company envisions to uplift the quality of life of the C, D and E classes through improved household conveniences.
ESLA president Jimmy Lim admits that 2017 has been a difficult year for the whole appliance industry in the country. In fact, his company has recorded only a 10-percent increase in cash sales and a flat growth in installments. Still, the company is delighted to celebrate its 50th anniversary by holding five monthly raffle draws, each giving away P500,000 in cash — tax-free in October, November and December — and a number of appliances. Last year, ESLA raffled off three Toyota Vios.
“This is the first time that we’re doing multiple raffles,” says Lim. “I said, ‘Why don’t we have a raffle where people could buy and get a chance to be included in the other raffles’?” So, we started the anniversary raffle early. If you bought an item from July 1 to Aug. 15, you were included in the first raffle last Aug. 22. If you were not picked, you will be included in the next raffle draws. So, the earlier you buy, the higher your odds of winning. It’s something different, something substantial for all our customers, and we hope that it will be successful. I’m still hoping that by the end of this year, we can be able to have a slight growth from last year.”
INTACT AND HOPEFUL
According to Lim, the drop in installment-bought products — the company’s life and blood — is mainly because of the insurgence of financing companies, which have realized ESLA’s reputation in the local market.
“There are outside financial companies coming in. I’m not sure about their funding, but most of them are foreign. One company met with me and they wanted to get my business. I told them that this has been my business for the last 50 years. I wanted to give them partial, but they were into getting the whole installment business,” explains Lim.
The company, whom Lim describes as “very aggressive,” approves appliance loans within 30 minutes through phone calls. “It’s something that I’ve never done and is unheard of in the installment business,” quips Lim.
“In our case, 55 percent of installment buyers are employees, 25 percent are business-owners and 18 percent are OFWs. So, I need to verify. I have to go to their house, to their business, to where they work and see if they are legitimate employees, or if they truly receive some sort of remittance. I am very strict. I need to know if they have the capacity to pay. That’s how we are. We want to know if your income compensates the amount of monthly payment that you can afford, based on your lifestyle, on how many children you have, if you’re renting, if you’re paying for a motorcycle, and so on.
“Even their payment is not done in the store where they bought the items. You have to go to a paying center to pay your account. It’s so hard to collect from Filipinos, more so ask them to go to a Bayad Center and pay. It’s not like an electricity or water bill, na puputulan
ka kapag hindi mo binayaran. Appliances or installments rank low among the priorities of the customer.”
Although strict with its requirements, ESLA offers the lowest rates, which level its sales with mall dealers who have partnered with the said financing companies. One of the company’s advantages is having 107 stores where customers pay their monthly installments. Without collectors and agents who earn commissions, ESLA is able to lower the rates further. Also, customers who pay at the stores get rebates. And they receive additional rebates when they pay on time.
Lim adds, “We have a lot of collection promotions. Last August, we started a nice promo to compensate customers who say that it’s easier to buy appliances through financing companies. We’re offering a fivepercent downpayment subsidy. For example, when you buy a TV worth P10,000 and you only have P3,000, we will accept the P3,000 minus the five-percent subsidy. So, you only pay P2,500 and we will finance the remaining P7,000. It’s partly cash and partly installment.”
The company is extending the promotion this month of September, focusing on appliance categories where it needs to improve its installment scheme.
Sixty percent of ESLA’s installment sales come from repeat customers, according to Lim. “We have been here for 50 years, so we have a big data file of previous customers. We go back to our fully-paid customers. We call them up and tell them about our new promotions.”
These loyal customers also refer the company to their friends and relatives, taking advantage of ESLA’s simple but effective referral program. “If you refer a customer for installment, you get a gift check worth P250. These little things help; it’s just a matter of reminding your past customers,” he notes.
BEST-SELLING APPLIANCES IN 2017
Appliances are mostly seasonal, but ESLA’s major appliances consist of LED TV (30 percent of sales), refrigerator (30 percent), washing machine (25 percent), and air conditioner (15 to 20 percent). Completing the company’s product lineup are freezers, laptops,
components, and other minor appliances.
According to Lim, washing machine sales has improved the most since the increase of water supply especially in the province. The boost in sales of the fully automatic washing machine has been substantial, with more than 50 percent than last year.
On TVs, he shares that small ones, such as the 24-inch TV, are surprisingly picking up again. “I thought the 32-inch TV would be replaced by bigger screens, but it picked up again because it’s cheaper. Last year, we saw a trend in 40inch TV. Now, the 50-inch is picking up.”
Customers are also into digital TVs because of better picture quality, specially on digital channels. They like smart TVs specially when they have WiFi connection in their house because they can watch directly from the internet. “Another one is 4K UHD TV, which is a little bit expensive but pays for itself. Filipinos usually set aside funds for TV because it is still the cheapest kind of entertainment,” says Lim.
Although very seasonal in terms of sales, the 1-hp and 0.5-hp air conditioners are fast-selling models, according to Lim, adding that the masses choose to install a 0.5-hp unit in a small room where they share it with the whole family.
“We are one of the very few countries that still offer window types,” he discloses. “Filipinos like it, maybe because they don’t want to pay for the installation cost. The US is also a big market for the window type but they only put the AC on during summer months. They literally place it on the window and remove it during colder months. In the Philippines, it’s like an accessory mounded on the wall, fixed all year round. You don’t care if it’s noisy, as long as it’s cold,” Lim smiles.
However, he advises his customers to choose inverters to save as much as 50 percent in electricity. “Unfortunately, we have high electricity rates in the Philippines. It’s better to get an inverter AC to cut down your electricity bill,” he suggests. Similarly, he says that more customers are also going after inverter refrigerators, particularly the ones with “direct cool inverter technology.”
“I hope more customers can come visit our stores and see the new products that we have. Hopefully, I might see you there. I guarantee that our prices are the cheapest in the market. There are a lot of customers that have taken advantage of our low prices. Also, take advantage of our monthly raffle. Buy early to be included in all remaining raffle draws. I might not be able to give P500,000 monthly ever again,” he caps.
CONTINUING THE LEGACY
“This business is a never-ending story about what customers want and need. You have to think of promotions, how the business is, where it is going. That’s why I make sure that when I open a store, I visit it at least three times a year, or every four months. It takes me a month and a half to go visit all the stores,” says Lim, who took over ESLA in 1992. Unfortunately, his father, Emilio S. Lim, passed away last year.
“My father saw the improvement that I have made for ESLA, and I tell my children to just continue the legacy. We’ve gone through so much, including the Asia crisis. And I really thank our customers who have patronized us,” he emphasizes.