Post-COVID 19 Consumer Spending in the Philippines
  1. Home
  2. »
  3. Insight
  4. »
  5. Consumer & Retail

Post-COVID 19 Consumer Spending in the Philippines

15 Nov 2021 | Philippines

Nineteen months after the COVID-19 pandemic struck countries worldwide, the Philippines continues to experience unprecedented turbulence and uncertainties stemming from new variants of the virus outbreak. The nature of the COVID-19 pandemic has resulted in significant consumer behavior changes and spending, specifically in fast-moving consumer goods (FMCG).

Regardless, companies are competing to ride the everchanging condition by expanding their channels and offering competitive product lines suitable for the newly changed behavior. Among the new consumer trend in the Philippines is the emergence of a stay-at-home lifestyle regardless of the government's decision to loosen the nationwide mobility restrictions.

Baby Boom Impact

The Philippines' demography expects to see a rise of over 2 million babies to be born at the end of 2021. The occurrence happens due to the natural population growth and will repertoire in the increasing traffic of baby categories products as new mothers require natal supporting goods in the first few years of newborn.

Spending

Throughout the pandemic, the Philippines' citizens are forced to become more aware of their financial spending due to the region's economic volatility. Consumers reduce indulgent shopping and focus more on necessary goods to reserve their liquidity more urgently, such as health and welfare.

The Rise of E-Commerce

Post-COVID 19 Consumer Spending in the Philippines

Being a nascent industry in the Philippines, the COVID-19's disruption towards brick and mortar stores has boosted the popularity of e-commerce. However, today, only 8 percent of the country's population is ordering FMCG products online, skewing towards metropolitan centers of the country such as Manila and NCR.

Today, the e-commerce channel of the Philippines is rapidly growing, with an additional 772.000 users in the first half of 2021 and brands throughout the country adding more touchpoints online regardless of the COVID-19's presence.

Omnichannel Shopping

With the robust adoption of e-commerce, consumers are experiencing ease in determining competition for each product variety. As a result, the previously minimum loyalty on one channel is reduced further as consumers compare one channel from another depending on the benefits offered and personal needs at the time. The behavior change requires platforms to keep the dynamic competition alive.

Convenience and Proximity

Consumers are showing preference towards brands that can provide convenience as the leading consumer experiences, with proximity following close in the priority list. Therefore, the emergence of online shopping can help stores reiterate their presence to be closer to the consumers with the support of reliable logistics providers delivering goods straight to the consumers' door.

Antibacterial Products

Antibacterial products and other hygiene-related goods are quickly gaining traction in the Philippines due to the rising awareness of clean living, as people prevent the spread of the COVID-19 virus.

The new trend of consumer behavior in the Philippines has catalyzed the need for strategy reconfiguration for all players in the industry, forcing them to provide a strategy that is best-suited for the unique issues and considerations possessed by the country's citizens. Additionally, the COVID-19 pandemic encourages businesses to come up with solutions that will last not only in the early post-pandemic era but also stands sustainably in the long term future.

Categories

Latest Articles

  • Challenges for Sustainable Recovery

    Challenges for Sustainable Recovery in Southeast Asia

    Sustainable recovery in Southeast Asia faces numerous challenges, yet also presents significant opportunities for green growth. Addressing sustainable issues is crucial for achieving a resilient and sustainable future.

  • Regional logistics initiatives in SEA

    Driving Cross-Border Growth: Regional Logistics Initiatives in Southeast Asia

    The logistics landscape in Southeast Asia (SEA) has undergone significant improvements. The SEA logistics market was valued at over USD 497 billion in 2020 and is projected to expand further in the coming years. The SEA logistics market is driven by various regional initiatives and government policies to enhance connectivity, efficiency, and competitiveness across the ASEAN. These initiatives have facilitated smoother cross-border trade and stimulated investment and innovation within the logistics industry.

  • Revolutionizing Automotive Lubricants in SEA

    Revolutionizing Automotive Lubricants in SEA: Steering Towards a Sustainable Future

    The evolution of automotive lubricants in Southeast Asia (SEA) is underpinned by a fusion of technological advancements and shifting market dynamics. Digitalization, in particular, has emerged as a cornerstone, enabling companies to enhance their operations, streamline supply chains, and offer personalized customer experiences. These technological strides are complemented by the growing emphasis on sustainability and eco-friendly products, pushing the development of advanced synthetic lubricants that offer superior performance and lesser environmental impact.

  • Drivers and Barriers for MaaS in Southeast Asia

    Exploring Drivers and Barriers for MaaS in Southeast Asia

    Navigating MaaS development in Southeast Asia, overcoming barriers, and leveraging key drivers are vital for a seamless and sustainable mobility future.

Discuss your needs with our team

Talk to us to discuss your needs and pain points.

Contact Us