Christmas cheer still propels consumer spending

‘Tis the season to be jolly— and for many Filipinos, it is the prime period to spend, too.

New data from international payments provider Visa show that card transactions by Filipinos rise steadily every December, showing how the Christmas season continues to drive consumer activity in the Philippines.

However, this spending surge plays out differently depending on where Filipinos choose to spend their holidays.

For those staying in the country, spending peaks around Dec. 23, a period Visa describes as the height of the “holiday rush in malls and commercial districts” as shoppers scramble to make last-minute gift purchases ahead of family gatherings.

By contrast, Filipinos traveling overseas tend to open their wallets after Christmas. Their spending peaks on Dec. 29, reflecting “continued leisure and travel-related purchases during overseas vacations,” before tapering off toward the New Year.

Overall, Filipinos abroad register a higher spending peak than those who remain at home. Interestingly, spending drops sharply on Christmas Day itself for both groups, before climbing again in the days between Christmas and New Year.

Visa says the data points to the enduring value of Christmas, whether celebrated at home or abroad.

“Christmas brings people together and our data [underscore] the holidays’ enduring sociocultural and economic significance to the country,” says Jeffrey Navarro, country manager at Visa Philippines.

Online holiday shopping

As e-commerce continues to expand, a growing share of holiday spending is also moving online, according to data from Lazada.

Electronics sales during its 12.12 sale surged by as much as 1,100 percent compared with regular days, making the category the top seller. The spike reflects how “middle-class households are increasingly turning to e-commerce to improve their home environments,” Lazada says.

Branded goods emerged as winners during the sale, as products at LazMall recorded some of the strongest sales during the campaign. Samsung, Dyson, JBL Nike, POCO, Colgate, UFC, BLK Cosmetics and DDPA were among the top-performing brands.

This trend, Lazada says, suggests that Filipino shoppers are becoming more deliberate, increasingly gravitating toward globally trusted brands even in the digital marketplace that’s crowded with low-cost, third-party alternatives.

Foreigners join spending rush

Foreign visitors in the Philippines also contribute to the holiday spending boom, according to Visa data.

Inbound card payments made by foreign tourists also surge during the Yuletide season, with visitors from the United States leading the bunch, followed by those from Taiwan, Japan, South Korea and Singapore.

Much of this spending is concentrated in the buzzing city of Makati, followed by Parañaque, Cebu, Angeles and Davao.

Spending preferences also vary by nationality. Visitors from the United States, South Korea. Singapore, Australia and Hong Kong allocate most of their spending on lodging, while Taiwanese and Japanese tourists spend more on entertainment.

Indian travelers, meanwhile, spend the largest amount on education and government-related payments. Visitors from Canada and the United States prioritize spending on groceries and food during the holidays.

Source: Inquirer