Study finds Pinoy shoppers now choose more expensive products.
The retail industry in the Philippines is now facing an evolution because while the continues growth in consumption has long been proven, a study found out that Filipino shoppers now tend to choose more expensive products than the cheaper ones despite poverty claims.
A study by Kantar Worldpanel, the world leader in consumer knowledge and behavior analysis, showed that Filipinos are now embracing more premium items, particularly for personal care products and food.
Based on 3,000 respondents across urban and rural areas, the report revealed that Filipinos are "uptrading" or choosing more premium products with additional benefits compared to traditional product lines they patronized in the past.
Kantar noted that 24 percent of categories in the fast moving consumer goods (FMCG) segment showed an "uptrading" trend that manifested the most in facial care, colognes, hair colorants, hair styling, talcum powder, toothpaste, razor, and liquid soap product lines.
"Our data shows that consumers are now more receptive to facial care products with anti-aging benefits, which are five times more expensive than average facial care products. Moisturizers are also becoming in-demand as consumers spend more on this product compared to astringents or exfoliants and facial washes," said Kantar Worldpanel Philippines new business development head Lourdes Deocareza.
She added that liquid soaps from relatively higher priced brands are also gaining in popularity in the country compared to regular bath bar soaps, with an eight percent increase in sales in 2015.
"Uptrading" is likewise seen in the food category. Kantar Worldpanel revealed that Filipinos are showing an affinity with expensive cooking oil such as palm oil and canola oil, while newer formats of cheese products like grated cheese, though priced higher, are gaining more customers as well.
The same trend has been seen in seasoning powder, baby food, mayonnaise, and sugar.
According to the study, urban and rural consumers are both "uptrading" but more consumers in urban areas are interested to go premium compared to customers in rural areas.
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|Title Annotation:||Business News|
|Date:||May 9, 2015|
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