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25 April 2022
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.
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]