Rhine Marketing Corporation

Rhine - A Filipino Success Story

People from all walks of life have associated Rhine Marketing Corporation with sewing machines. Rhine started its operation in Cebu by selling sewing machines on the installment plans. Today, there are more than 64,000 homes in the country with a Rhine sewing machine. Rhine, known for its low cost appliance installment schemes, has been improving the quality of life for thousands of Filipinos by making available all types of appliances, computers and small industrial equipment: sewing machines, TV's, refrigerators, pianos, sing-along systems, stereos, VCD & DVD players and components, electric fans, furniture, spring beds, gas ranges, washing machines, and many more consumer items, on affordable terms.

To date, Rhine has more than 60 branches nationwide.

As the frontrunner in appliance installment sales, Rhine has consistently ranked among the top 500 corporations in the Philippines. In 1981, the Cebu City Mayor's office gave Rhine "The Most Outstanding Private Institution" award. Also, the company was cited by the Social Security System for being "one of the highest paying employers in the region."

ORIGIN

In 1947, the late Claude Marion Wilson Jr. after has retirement from the US Army, invested his savings and set up the Claude M. Wilson Trading Co., a company engaged in the imporation and selling of construction materials, essential items needed for the country's reconstruction after World War II. The small enterprise was later renamed Claude Wilson Corporation. The company started selling imported sewing machines, and business machines, principally the Italian Olivetti typewriter.

The Claude Wilson Corporation established its Cebu branch in 1957, at the center of Juan Luna and D. Jakosalem Streets, under the supervision of Mr. Juan Ross. Mr. Lou Da Costa was then General Manager of the Manila Head Office.

In less than a year, the company grew and Cebu branch moved to bigger offices of the old Osmella situated at the corner of D. Jakosalem and Magallanes Streets. Mr. Jose Antonio Martinez became the first branch manager, while another trusted Wilson executive, Mr. Senen Valero, took charge of company operations.

In the later 50's and early 60's, the Philippine economy began to flourish resulting in an increased demand for sewing machines and other home appliances. This gave the company through Claude Wilson's entrepreneurship, the impetus to diversify and expand its product lines.

In line with the government's call for the establishment of more factories, Mr. Wilson decided to manufacture instead of import sewing machines. This daring move was vigorously challenged by competitors who could import sewing machines more cheaply than to manufacture them.

In 1961, Claude Wilson Corporation became Philippine Sewing Machines Manufacturing Corporation (PSMMC). The company head office was in Manila with branches in Cebu and Dagupan, locations designed to meet demands in Luzon and the southern part of the country. Martinez was transfered back to head office in Manila and A.F. Martelino was appointed Cebu Branch Manager.

On May 26, 1964, PSMMC (now METERCOR) formed a marketing arm called Rhine Marketing Corporation principally to sell Rhine sewing machines. Paid-up capital was P50,000.00.

In the 70's product lines were expanded to include other consumer durables which, like sewing machines, were also in short supply. Since the company's main thrust was to be installment sales, Wilson and his executives reasoned that a provincial head office would stand a better chance of succeeding. That nationale was that a small, cohesive community where people knew each other and have lived in the area for many years would result in a safer, less risky sales on credit. Cebu was a natural choice. That policy was a wise one indeed and Rhine today continues to operate a nationwide network of branches from its home base in Cebu.

NETWORK

In addition to Rhine Cebu, which was located in Magallanes street, sub branches in Toledo City, Bogo and Carcar were already operational.

Dumaguete, on the other hand, branched out to Guihulgan, Escalante, Bayawan, San Carlos City, all in Negros island, and in the island province of siquijor.

Rhine Cagayan de Oro, with its first branch manager, now CEO, Hernando O. Streegan, had outlets in Ozamis City, Gingoog, Butuan and Oroquita City.

Barely from months since its establishment Rhine opened another branch in Davao City. Later on, Davao established two units in Tagum and Digos.

Tagbilaran opened an outlet in the latter part of 1964 but became a full fledged branch the following year.

In July 1967, Ozamis City, due to increased economic productivity, had fully grown into a branch.

From 1964 to 1970 Rhine sold only sewing machines. But at the start of the 70"s, consumer durables were in great demand. The company was in touch with the market and was prepared to meet new challenges.

EXPANSION

In 1970, Hernando O. Streegan assumed the stewardship of Rhine and became the President and General Manager. His appointment triggered the long-envisioned expansion program of the company. For starters Rhine diversified by selling furniture and spring beds also on the installment plan to serve the needs of the same market.

In the span of four years (1970-1974), Rhine had a complete line of home appliances.

In May 1971, Rhine established its first branch in Western Visayas opening a store in IloIlo City. It was managed by Ludivico Rivera and assisted by Juanito Guinto.

In February 1972, Guinto became the first branch manager of yet another Rhine outlet in Roxas City.

Six months later, another branch opened its doors in Bacolod City. The Butuan branch was opened in July 1975, Ormoc branch on October 1975 and Quezon City branch on October 1976.

In 1976 Rhine opened a new division, the Agro-Marine Group, to help provide fishermen and farmers with machinery tools and implements necessary for their trade. It became the exclusive distributor of Evinrode outboard engines for the Visayas and Mindanao Areas.

The industrial Products Division was opened two years later to sell Canon typewriters and electronic calculators as well as fill the need for commercial and industrial equipment.

Also in 1978 five branches were set up in Surigao, Tagum, Sta. Cruz, Las Pinas and Kalibo.

The following year there more branches opened in 1980. These are located in Makati, Mati, Gingoog, Valencia, San Jose, Calamba and San Fernando.

Rhine Marketing Corporation - Computer Division (RMC-CD) is a leading manufacturer of personal computers, and distributor of a complete line of peripherals and other computer-related services. Established in February 1992, when Rhine Marketing Corporation's interest has evolved from home appliance business to Information Technology (I.T.), we now enjoy a rapid growth and has achieved a good reputation immediately. We not only provide expertise to meet the increasingly sophisticated needs of our clients, but also offer solutions that set new standards for quality performance and value.

PROGRESSIVE

Rhine has been actively involved in various socio-economic and civic projects of such institution as the Boy Scouts of the Philippines and the Philippine Business for Social Progress. Personal involvement of the Chairman of the Board Mrs. Isabel Caro Wilson and Mr. Hernando Streegan ensure the company's support and active participation in worthwhile community undertakings.

In 1980 Rhine started granting college scholarships under the Claude M. Wilson Scholarship Program. An average of eight deserving students is selected per year. At present, there are now 80 students who have fully availed of the program.

Internally, Rhine's close to 1,000 employees throughout the country enjoy substantial social benefits: a company retirement plan, group hospitalization, plan emergency loan plan, group life insurance and employees discount/terms on appliance purchases.

For 39 years, the company has served more than 700,000 families by granting them credit through installment sales of more than 1.1 billion pesos. Rhine also gives P30,000.00 death cash benefit to the beneficiary of any Rhine customer who at the time of death due to an accident still has an up to date account of Rhine Marketing Corporation. Consequently, the remaining balance shall be waived and the unit purchased by the deceased customer shall be considered fully paid.

Rhine Marketing Corporation also honors the people who for a number of years have rendered their loyal and faithful service to the company. The company believes that to these individuals, recognition for their hardwork is what they all truly deserve. Every year, service awards are given to its employees who have reached five, ten, fifteen, twenty and twenty five years in the company. Awardees are distinctively awarded with plaques and cash incentives for their respective number of years.

STRATEGIES

Inspite of adversities faced by the appliance retailing industry in the form of stiff competition and government regulations. Rhine has devised innovative schemes and incentive programs to boost the company's installment sales and capture a large segment of the market.

These efforts have resulted in high efficiency ratings, and improved net earnings vis-a-vis owner's equity. The company's credit lines, while available, are used minimally, a good standard achievement since Rhine finances its installment sales.

SALES TOOL

Through the years, Rhine has consistently identified itself with low installment plans. White other appliance firms accept installment sales, few concentrate on it as much as Rhine, which gears its entire marketing stategy to the cultivation of long-term customers who are possible sources of repeat sales. Supporting this strategy are carefully calibrated ranges of installment terms among which a customer is sure to find one perfectly suited for his earning power and budget priorities. Other companies treat installments as subsidiary sales mechanisms: for Rhine, it is a major sales tool.

Rhine is a self-financing installment house. Unlike other appliance outlets, Rhine does not channel receivables to independent finance companies whose collectors and agents deal directly with the customer. At Rhine, the company maintains and trains in-house personnel to adequately service a customer's account. This set up is advantageous to the customer as well as to the company since it helps establish rapport and trust which consequently improves collections and after-sales service.