InterAksyon.com means BUSINESS
MANILA - The economic slowdown last year has resulted in more Filipino households going to the grocery every week, accompanied by a rise in top-up shopping, Nielsen Philippines said on Thursday.
In its Philippines Shopper Trends Report, Nielsen said close to half or 45 percent of respondents in 2011 went to the grocery every week, up from 30 percent in 2010.
The increase in the number of weekly grocery shoppers accounted for the drop in the number of those who shopped once every two weeks, once a month, and less frequently.
The average visit to the grocery each month rose to 2.61 in 2011 from 2.18 the year before.
This trend was confirmed by the increase in the number of those who went to the grocery to top-up or replenish their household requirements by buying few items.
The average visit to the grocery each month for top-up purchases rose to 2.11 last year form 0.99 in 2010.
Top-up purchases increased for those who visited the grocery every day, every week, every two weeks and every month.
"Following a GDP high in 2010 due to the election, the Philippine economy slowed during 2011," said Stuard Jamieson, managing director of Nielsen Philippines.
"The impact of the global economic crisis coupled with natural disasters both within and outside of the country has caused consumers to be more cautious with their spending, and this is evidenced in the move to more frequent shopping visits but smaller basket sizes," he said.
"Consumers are decreasing their basket size in order to manage their available cash, shopping only as the need arises," he added.
The Philippine economy grew at a slower 3.9 percent in 2011 from the 7.6 percent in 2010.
Impulsive yet price-conscious buyers
Despite efforts to trim spending last year, seven out of every 10 respondents remain impulsive buyers, Nielsen said.
While nine out of 10 prepare shopping lists, seven don't stick to the budget and remain open to impulse buying.
Nielsen data also showed that close to a third of Filipinos claim to actively search for promotions when shopping, whereas 40 percent purchase promo items only if it is a brand they like.
"This behavior illustrates Filipino shoppers’ loyalty to brands they have tried and tested. However, it also demonstrates price-awareness when it comes to promotional engagement," Jamieson said.
In the same vein, prohibitive pricing discourages Filipinos from buying green products. This is despite claims by nine out of 10 respondents that they root for environment-friendly products.
"Price remains a barrier for Filipinos to adopt environmentally friendly purchasing habits. With 50 percent of shoppers stating they would purchase environmentally friendly products only if the pricing is on par with the cheapest brand, manufacturers must create cheaper alternatives in order to encourage shoppers to purchase environmentally friendly products," Jamieson said.
The report is an annual study of consumer shopping behavior conducted in urban locations between October 8 and November 23, 2011. The study involved interviewing 1,500 respondents aged 15-65 years old who were both main grocery buyers and key influencers.
InterAksyon.com means BUSINESS