Filipino households are most concerned about rising grocery prices, but are hopeful their financial condition will improve in the next 12 months, according to marketing data and analytics company Kantar.
Laurice Obana, consumer and shopper insight director at the Worldpanel Division of Kantar, said in a briefing that their Shopperscope 2023 report showed 67 percent of Filipino households are most concerned with rising grocery prices.
This was followed by experiencing another pandemic (50 percent), and increase in cost of fuel (44 percent).
The report also showed Filipinos are concerned about the impact of climate change (39 percent), potential fuel shortages (34 percent), physical and mental health of self and others (30 percent), future financial security (30 percent), political conflict with other countries (28 percent), economic outlook of the country (24 percent), and food shortage (23 percent).
The results are based on a survey covering 2,000 households across the country conducted earlier this year.
While there are concerns, Obana said Filipinos remain hopeful, with only eight percent saying their situation will worsen in the next 12 months.
The report showed that 44 percent of Filipinos expect their financial state to improve in the next 12 months, while 48 percent expect it to remain the same.
When asked about what best describes their overall financial situation, Obana said 72 percent said they are still able to make both ends meet, while 17 percent are unable to cover expenses, and only about 11 percent have minimal budget restrictions.
“When we say Filipinos are able to make ends meet, let us not make any mistake about the word managing or making ends meet. Filipinos don’t really have it easy. It is not business as usual. So they also make compromises in order to make ends meet,” she said.
To manage tight budgets, she said Filipinos are looking for cheaper products when they do their grocery shopping.
When choosing where to buy fast moving consumer goods (FMCG), those who participated in the survey expressed the continued importance of value and convenience during inflationary times.
Obana said Filipinos are now putting more emphasis on price and affordability compared to last year.
She said convenience for Filipino consumers is not just about the proximity of shops to households, but also about access to stores having longer hours and other establishments.
In consideration of their financial disposition, the report identified three distinct groups of Filipino shoppers such as the Struggling or those who find themselves unable to cover their expenses; Managing or those who always find ways to make both ends meet; and the Comfortable or those least constrained when it comes to their budgets and are able to set aside extra money for savings.
“It is important to note that each shopper group has their own considerations and priorities when going out to buy FMCG for their households. Understanding their shopping behavior and preference for where, when and what to buy will allow FMCG brands and retailers to better serve their needs, especially with their concerns at this time,” Obana said.