Health concerns rising among Filipino consumers – survey

MANILA, Philippines – The Filipino consumer remains the 3rd most confident globally since the last quarter of 2013, according to the global information and measurement company Nielsen.

Revealed Monday, November 10, the Nielsen Global Survey of Consumer Confidence and Spending Intentions showed that the Philippines got 115 points to retain its ranking. (READ: Nielsen: Filipino consumers 3rd most confident in world)

While remaining confident, however, Filipino consumers foresee 3 major concerns over the next half a year, among them health, job security, and work-life balance.

Globally, consumer confidence remains steady at 98 points. (See Chart 1)

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism. 

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted from August 13 to September 5, 2014 and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa, and North America. This Nielsen survey is based only on the behavior of respondents with online access.

Respondents identified job security as a key worry over the next 6 months, but the worry meter went down from 36% in the 1st two quarters of the year to 34% in the 3rd quarter of 2014.

Concern on health though shows a steady rise, from 19% in the 1st quarter and 25% in the 2nd quarter, to 27% in the 3rd quarter this year.

Work-life balance (27%) has also been a perennial, major concern of Filipino respondents.

Filipino consumers are also concerned about their parent’s welfare and happiness (16%) and increasing utility bills (16%). (See Chart 2)

“While consumers are just starting to enjoy the perks of their personal economic growth, a level of caution remains in their view as concerns about job security, health, and the welfare of family members are always in their minds,” said Stuart Jamieson, Nielsen’s managing director in the Philippines.

Despite such concerns, consumer confidence remains, notably in the Philippines’ neighboring countries.

After India, Indonesia is the 2nd most confident globally, with the country’s consumer confidence at 125 in the 3rd quarter of 2014.

Thailand’s Consumer Confidence Index score, meanwhile, surged to 113 to land at 4^th place.

Savings

Like with their Southeast Asian neighbors, a growing majority of Filipinos are putting emphasis on saving.

Nearly 7 in 10 Filipino and Thai consumers (67%), along with their Southeast Asian neighbors, are still focused on putting aside savings for the future.

Filipino consumers put their spare cash into savings and invest in stocks (25%). But they are also eager to spend on new clothes (37%), home improvements/decorating (29%), and holidays and vacations (28%). (See chart 3)

Jamieson noted that spending among Filipino survey respondents are attributed to their aspiration of building nest eggs, resulting in demand for financial services.

“… At the same time, they also reveal a growing desire to improve the immediate environment, which is the home, and indulge in experiential offerings such as vacations,” Jamieson observed.

On the other hand, Vietnamese consumers (77%) and Indonesian consumers (74%) are stashing their spare cash into savings after covering essential living expenses.

Consumers in other Southeast Asia markets, including those in Singapore (66%) and Malaysia (63%), are also diligently saving.

As inflation rises across the region, a growing number of consumers are looking for ways to curb their everyday household bills.

The Philippines joins 4 Southeast Asia markets (Thailand, Vietnam, Malaysia, and Indonesia) in the top 10 globally of those changing their spending to save on household expenses.

Close to 9 in 10 Thais (88%) have changed their spending on household expenses, the highest level globally. This is followed by 86% in Vietnam; 83% in the Philippines; 79% in Malaysia; 76% in Indonesia; and 63% in Singapore.

Spending less on new clothes, trying to save on utility bills, and delaying technology upgrade are some of the most common areas where Filipino consumers are looking to save. (See Chart 4)

“As Filipino consumers experience an improvement in their economic status, they remain prudent with their spending,” Jamieson said.

“With increases in prices, they will be on the lookout for ways to get more value out of products and services,” Jamieson added. – Rappler.com