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Fewer Pinoys made shopping trips in first half of 2018 — Study

BusinessWorld logo BusinessWorld 9/12/2018
a person standing in front of a fruit stand: sari sari store sari sari store a person standing in front of a fruit stand: sari sari store sari sari store

By Anna Gabriela A. Mogato

MORE than half of Filipino households cut down on shopping trips to buy fast moving consumers goods (FMCG) in the first half of 2018, new study shows.

The study, conducted by consumer knowledge research firm Kantar Worldpanel, reported that the average household only went out 178 times to buy FMCGs in the first six months of the year, a drop from 183 shopping trips made during the same period last year.

But despite the drop in trips, certain industries saw an overall spike in volumes as households opted to buy these goods in bulk.

“Personal and home care categories […] both enjoyed upsizing and bigger volumes bought by local households,” the research firm said.

Among the 53% of Filipino households that cut their shopping trips, the most significant drop came from Class D and Class E households, having shopped six times and five times less, respectively, from January to July this year.

Kantar Worldpanel noted that due to the cutbacks, sari-sari stores and market stalls were heavily affected.

While 45% of respondents expressed a willingness to add more trips to purchase FMCGs if necessary, a whopping 98% of households reported a change in their shopping behavior. Kantar Worldpanel analysts said this signals a need for firms to adapt accordingly.

Kantar Worldpanel Account Director Ruth Mendoza-Sazon in a statement said that amid increasing consumer prices, FMCG brands should adapt to the change by making “each shopping visit count for Filipino consumers.”

“[C]ommunicating the right value proposition of our brands will be very critical to stay in their shopping basket as the budget becomes more challenged,” she added.

However, the study found that shopping behavior around food remained largely unchanged compared to numbers reported in the same period last year.

“They also preferred to allocate a similar basket size for food items amidst the increase in prices,” the research firm said.

The study also saw that households bought more water in larger volumes as the price of sugar-sweetened drinks increased with the first package of the Tax Reform for Acceleration and Inclusion law, or TRAIN.

“Revisiting healthier options such as water will be crucial in staying afloat,” Ms. Mendoza-Sazon said.

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