Filipinos spend 15% more during election years - study
MANILA, Philippines – Filipino household spending on fast-moving consumer goods increased by almost P5 billion during the past two election years (2007 and 2010), a study showed.
Average spending growth almost doubled during election years compared to non-election years (2005, 2006, 2008, 2009 and 2011), according to the study published by market research firm Kantar Worldpanel.
The study, entitled “Filipino Household Behavior and 2013 Outlook,” found that Filipino shoppers across the country spent 15% more on every shopping trip during an election year. The spending spike was most prominent among poor families.
Households that belong to classes D and E were found to spend about 15% to 16% more on every shopping trip.
During the last two election years, sales for non-essential items such as sports drinks, air fresheners and cosmetics increased significantly.
Soft drinks sales rose to P3.2 billion, while pasta and instant noodle sales jumped to P2.8 billion.
South Luzon and Mindanao residents had the highest spending growth rate in the country. People living in Mindanao spent 17% more per shopping trip while South Luzon residents spent 14% more.
For both election and non-election years, the Filipino households allocate their budget on the following:
- 52% for food
- 22 % for beverages
- 18 % for personal care products
- 9% for household care products
“Though allocation remained, the main difference was how significant households’ spending grew during election years,” said Luz Barra, Kantar Worldpanel’s commercial director.
Kantar surveyed 3,000 urban and rural households nationwide. – Rappler.com