Retail installment industry thrives despite global crisis

CEBU, Philippines - Unlike other industries that have been hounded by the impact of the global economic crisis, appliance centers offering installment payment plans for the products that they sell continue to thrive in a gloomy economic environment.

Gillamac Group of Companies chairperson Lucrecia Gillamac-Alvarez said the sector remains unfazed by the financial difficulty faced by other sectors, as the crisis is one of the factors that help sustain the existence of their industry.

“The products we (the industry) sell are on installment basis. Therefore, we help people buy the appliances they want even when they do not have the full amount of money needed. Our industry is never-ending. As long as there are people, we will exist,” she said.

Retail installment selling involves a promissory contract that obligates a buyer to make periodic payments for the products that they buy.

Gillamac’s Marketing Inc. (GMI), is one of the pioneers, if not the pioneer of the appliance retail industry in the country.

With the stiff competition in the industry, Alvarez said the only way to keep and gain additional patrons is to provide clients with quality yet affordable products as well as good customer and after-sales services.

As for GMI, the company has chosen to sell Japanese-manufactured products because of their perceived quality. When the global crisis struck Japan, Gillamac’s began carrying China-made “top-of-the-line” products.

The difficulty to source out products from Japan, when the country’s production slowed down due to the crisis, was the only financial crisis-related problem that Gillamac’s faced.

GMI, which is celebrating its 40th anniversary this year, has diversified and ventured into the fields of diagnostics, information technology, manufacturing, loan-financing and life and pension plans.

It was founded by couples Cecilio and Flora Gillamac. The company’s first client was Norkis Trading. Major names in the industry such as 3M Philippines , Shell Philippines and Suzuki Corp. also trusted Gillamac’s as a venue to sell their products to the market. GMI has 50 full-service with collection branches nationwide.

The Gillamac Diagnostic and Medical Laboratories was established in 1995.    

Sensing the outset of information technology, GMI introduced its own brand of computer, the OCLAR computer in 1997. The high-cost of marketing a brand and competing with other computer brands made the company decide to re-launch OCLAR from a computer brand into a store that carries IT products.

In 1999, the Gillamac’s group incorporated the Gillamac Information Technology Center Inc. (GITEC), the franchisee and operator of Systems Technology Institute (STI) in the Visayas and Mindanao. GITEC has nine-STI schools in their franchise area.