...the modern shoppers

Filipino Shoppers Going Modern – Survey

 

Manila Bulletin 

 Sat, Jun 30, 2012

More and more Filipinos are purchasing goods in modern trade channels such as supermarkets and hypermarkets throughout the country but sari-sari stores still rule, a consumer survey by Kantar Worldpanel found.

SM Hypermarket

A study by Kantar Worldpanel, the world-leading provider of continuous, syndicated consumer panels and research solutions into shoppers' purchase and usage behavior, looked at the venues where Filipino households make their fast-moving consumer goods (FMCG) purchases.

It tracked 3,000 urban and rural households nationwide, predominantly from the DE market with an annual household income that is P800 billion more than the national budget.

Mercury Drugstore

Around 17 million homes comprise the DE market with FMCG purchases amounting to P434 billion.
Almost half of Filipino shoppers (47%) still buy from the sari-sari stores.

However, the Kantar Worldpanel study, "Philippine Households' FMCG Spending," reveals that Filipinos are now increasingly buying more goods in supermarkets and hypermarkets where promotions and affordable packs are becoming more available.

Watsons outlet

An upward trend in the growth of channel shares has been seen in modern trade channels, increasing from 26% to 28% in the past four years, compared to other channels like grocery stores, drug stores and market stalls, which registered flat or decreasing growth.

Filipino homes are also spending more on modern trade. The average FMCG spending in modern trade channels per household has increased to Php 9,495 in 2011 from Php 9,194 in 2010 (301-pesos increase). In fact, average spending on modern trade has also steadily increased in the past four years.

• Another key finding in the "Philippine Households' FMCG Spending" study is the expansion of modern trade retailers to reach more Filipinos. These retailers have been aggressive in opening more branches outside the National Capital Region (NCR). The likes of Mercury Drug, Watsons and SM have post the highest number of branches at 700, 218 and 144, respectively. Evidenced by its number of branches nationwide, Mercury Drug enjoys a market penetration rate of 30.4%, compared to SM at 25.9% and Watsons at 4.5%.