ESLA THRIVED FOR 50 YEARS BY CATERING TO CD MARKETS
EVEN with the growing popularity of credit cards as payment for pricey necessities like home appliances, Emilio S. Lim Appliances weathered such competition, even maintaining growths through 50 years of its operations, simply because it catered to its niche market—the CD classes whose aspirations for better life are addressed by the easy installments and rebates for timely payments that the company provides them.
That it had grown to its current size of 104 store outlets (25 of which it owns the property such stores stand on) in Metro Manila and provinces north and south of the Metro, ESLA Appliances could very well boast that it had weathered all global crisis (recession and the Asian financial crisis of the nineties) and can continue doing so through proper management and understanding of the Filipino middle and lower class.
“Our appliances are definitely cheaper than those sold in the malls because our overhead is a lot less whereas appliance stores in the malls pay huge rentals and more manpower to attract buyers into their shops,” said Jimmy Lim, who took over the reins of ESLA Appliances in 1992 and steered it through the wild global financial currents.
Of late, he is keenly watching the developments in the market, where foreign financing companies with deep pockets (from the Czech Republic) have been offering financing to Filipino buyers with less credit requirements and investigation and in 30 minutes. They have people in the malls talking to potential clients about their financing programs and these are approved within the day, so that the buyer gets to haul the desired appliance by the time he/ she goes home.
“I don’t really know how they are able to do that, it is simply unimaginable. They have been even asking for my clients and I am willing to give them those that have been slow in paying their installments but they simply want my whole list of clients—good and bad. Of course I will not agree to that,” he explained.
Anniversary raffles As the company kept growing through the years, it also had to upscale its anniversary celebsrations each year wherein last year it undertook raffle for clients with the grand prize of three Vios cars in 2016 and before that Wigo cars in 2015.
This year, being a golden year, the company held beginning last July 1, a P500,000 monthly raffle that was drawn last August 22 and the second on September 22 to the lucky buyers of its appliances. The winners from August and September draws both came from Batangas and bought television sets (the first one just resigned his job since he wanted to put up a small sari sari store). But they both got net of withholding taxes so P400, 000. The October draw was held last Oct. 25. For those who will win the draws from October to December 8, they will receive the entire amount of P500, 000 cash as the company is shouldering the tax, he explained.
Aside from that, ESLA Appliances gave minor prizes like refs, televisions and others to those who did not make it to the grand prize.
Those who did not win the August or later draws still can participate in the subsequent draws, which is different from the usual raffles being done by other companies. “The earlier you buy, the bigger your chances of being included in subsequent draws and more chances of winning the grand prize,” he said.
The raffles are being anticipated by people. August being a ghost month for Chinese is bad for business but because of the raffle it brought sales up for ESLA Appliances. Tough market Generally though appliances have been very difficult this 2017 maybe because people are tighter now and appliances are not in their top priority, he said.
But we are more same as last year, like we experienced 1 percent growth. But others in the appliance dealership are all experiencing difficult times, he said.
TV sales for one is down by 10 to 12 percent; refrigerator is up but washing machine is down (they sell twin tubs and semi- automatic for up to 6 kilos). What covered for my drop in TV sales was aircondition (window type of half to 1500,000