Filipinos still brand-conscious, study shows
Monday, July 23, 2012
FILIPINO households are willing to spend more on branded products that offer value for money over cheaper alternatives. In fact, it’s not just about the lowest price in this P800-billion market. A consumer survey by Kantar Worldpanel said Filipino families recognize that quality comes with a price. Kantar Worldpanel, a provider of continuous, syndicated consumer panels and research solutions into shoppers’ purchase and usage behavior, conducted a study among 3,000 urban and rural households nationwide to determine the shopping preferences of Filipinos. The study shows that around 17 million Filipino homes belong to the DE market, with fast-moving consumer goods (FMCG) purchases amounting to P434 billion. Of this amount, P74 billion is spent on personal care. Check our new look and tell us what you think.
According to the latest “Philippine Households’ FMCG Spending” study, 62 percent of respondents equate higher price with higher quality and 84 percent said they buy well-known and trusted brands. The study said brand equity remained an important consideration for Filipino shoppers. The Kantar Worldpanel’s study showed that the products that registered the fastest growth in 2011 were not necessarily the cheapest in their categories. Kantar Worldpanel’s study also shows that companies are being innovative in their packaging options in order to reach low-income DE households. The study notes that value for money is driven by making products more affordable through the advent of sachets. In fact, the study shows that more affordable sachet innovations drove the market in different FMCG categories. Single (40 percent), dual (12 percent), tri (17 percent) and even quad sachets dominate the total shampoo value contribution of sales for the category. Quad sachet contribution grew from one percent in 2010 to 16 percent in 2011. For bath soaps, lower-priced pillow packs got the bigger share of the pie...
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