Brands need to respond to changed Filipino shopping habits | WARC | The Feed
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Brands need to respond to changed Filipino shopping habits
COVID-19 movement restrictions are easing in the Philippines, leading to increased shopping frequency, according to research agency Kantar, with neighbourhood sari-sari stores the main beneficiaries.
Why it matters
Sari-sari stores became the preferred destination for daily necessities for many shoppers during the pandemic and that remains the case now as cost-conscious consumers avoid any unnecessary spending – such as the transport costs involved in getting to large stores.
“With the return to neighborhood stalls (sari-sari stores), brands that can get themselves into the limited shelf space will be the ones who stand to gain the most,” said Laurice Padlan-Obana, Kantar shopper and consumer insight director, in remarks reported by Business World.
Takeaways
- Overall fast-moving-consumer-goods (FMCG) spending during the last two years dropped 11%, but spending per [sari-sari] trip on FMCG goods rose 7% in 2021.
- Sari-sari stores can extend informal credit, which may become increasingly important as inflation bites.
- Kantar reports that more than half of the FMCG products it monitors have raised prices by more than 5% in the last two years and shoppers are switching to brands that offer them greater value.
- Currently only 8% of Filipino homes shop online, so there is potential for brands to leverage this platform.
Sourced from Business World [Image: sarisaristorela.com]
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