A majority of Filipinos are more concerned about the rising price of goods than more pressing issues at hand, a report by consulting company Kantar said.
“It’s actually more interesting that they are even more scared of the rising grocery prices over another pandemic crisis from happening again,” said Kantar Philippines Worldpanel Division consumer and shopper insight director Laurice Obana in a briefing Wednesday.
Kantar said it conducted the Shopperscope 2023 survey to determine how well shoppers are coping with trending challenges on higher poverty rate and increasing consumer confidence against the backdrop of an expanding economy, lower unemployment rate, and higher remittances.
Another concern influencing Filipino shoppers’ behavior includes the rising cost of fuel which also impacts the price of grocery items.
From a sampling size of 2,000 respondents, across the Philippines’ socio-economic classes, the survey revealed that the majority of Filipinos as still able to make both ends meet.
About 72 percent of respondents said they still manage to afford to buy most of their needs, while 17 percent can barely keep up with the expenses and 11 percent have no major concerns when it comes to spending for groceries and are focused more on their mental and physical health.
The three categories of shopper groups expressed the continued importance of value and convenience during inflationary times.
“It is important to note that each shopper group has their own considerations and priorities when going out to buy FMCG for their households.
Understanding their shopping behavior and preference for where, when and what to buy will allow FMCG brands and retailers to better serve their needs, especially with their concerns at this time,” Obana said.
As to where Filipinos shop, she added that there is no exclusivity within the FMCG retail outlets since all three shopper groups patronize hypermarkets and supermarkets, groceries and sari-sari stores, and even convenience stores, drug stores and direct sales – albeit at different levels of frequency and loyalty.
“Shopperscope 2023 indicates that shopping in supermarkets is planned and deliberate for Filipinos. In fact, 68 percent of Filipinos plan their trips to large format channels, with a budget and a grocery list in mind. Comfortable shoppers also take these trips as an opportunity to bring along their families, while struggling shoppers see it as a solo mission,” Obana said.
Meanwhile, sari-sari stores continue to be the preferred retail channel for many Filipinos. In 2023, shopping trips to proximity stores totaled 212 trips, up 5 percent from the year before. Almost all households, at 99.7 percent, shop in their neighborhood sari-sari stores, which are usually five to 10 minutes away from their homes.
“With various concerns and a fixed FMCG budget, brands must be able to win Filipinos in that ‘Moment of Truth’ across retail channels by communicating the value that their products offer and why they need to make it into the shopper basket,” Obana said.