What Filipinos do without when food prices rise
MANILA, Philippines – In times of inflated food prices, Filipinos are wont to make "trade-offs" and "tough in-store decisions."
A recent Nielsen report on the global inflation impact released on Tuesday, October 8, showed what Filipinos would be willing to keep, make do or do away with, and where they would shop more on the back of rising food prices.
In September, inflation in the Philippines accelerated to 2.7% from 2.1% in August due to higher prices of goods and services.
"As consumers feel the pinch, they look for ways to stretch their budgets and find the best value for money," Stuart Jamieson, managing director of Nielsen Philippines, said in a statement.
What Filipinos would buy
When the cost for them to purchase food increases, Filipino respondents would be flexible in the following areas:
- buying new clothes and accessories - 61% of respondents
- dining out - 59%
- spending on snack food - 51%
- paying for recreation and entertainment - 41%
- traveling or going on a vacation - 38%
These, however, would remain as their spending priorities:
- main meals at home - 65%
- education - 64%
- medical (including doctor and dentist visits, medicines and vitamins) - 63%
- savings and investments - 52%
- housing (including mortgage, rent, utilities, etc) - 40%
Spending choices regarding food categories would also change, with 20% of Philippine respondents saying they would buy more fish and seafood, while 16% would stock up on fresh or frozen vegetables and fruits and 15% would favor organic products.
Over 50% of the surveyed local consumers would be consistent on their spending for staple categories: meat and poultry (66%), bread and bakery goods (64%) and dairy products (56%).
Seven out of 10 would lie low on consuming chips and snack foods (75%), carbonated drinks (73%) and sweets like cookies and candies (71%).
Where Filipinos would buy
The Nielsen survey also delved into where consumers would shop more during when prices are high:
- discount/dollar stores - 36%
- fresh food farmers’ markets - 30%
- warehouse club stores - 25%
- clearance stores - 20%
- supermarkets - 20%
- hypermarkets - 18%
Going local would be the option for 32% who would grow their own food, and 15% who would frequent local neighborhood stores.
Marketers need to note how consumers are flexible in their spending choices amid rise in food prices, Jamieson advised. "It is important for marketers to identify retailers that will satisfy the unique demands of consumers,” he added.
How Filipinos would buy
The preferences of Filipino respondents for the following emerged from the survey:
- solely sale-priced items - 40%
- regularly used items when they are on sale - 36%
- larger pack sizes - 35%
- smaller portions - 20%
Filipinos would also rely mostly on the Internet for saving techniques, with 21% saying they would lean toward online deals and 20% toward social media treats.
Nielsen's Global Survey of Inflation Impact included 29,000 online respondents in 58 countries across Asia-Pacific, Africa, Europe, Latin America, Middle East and North America. It was conducted between February 18 and March 8. - Rappler.com
Grocery cart image via Shutterstock.