A MARKET research provider advised local suppliers and retailers to identify opportunities amid consumer trends resulting from the global financial crisis.

According to The Nielsen Company (Philippines) Inc., this will enable them to generate business growth as more consumers are driven to cope with the economic crunch through saving and looking for value-for-money items with ease.

For updates from around the country, follow Sun.Star on Twitter

At the same time, Filipino consumers still desire for better quality of living by seeking innovations related to health and the environment.

Marge Martinez, associate director for retailer services of The Nielsen Company (Philippines) Inc., presented this information in last Wednesday’s 3rd Cebu Regional Retail Conference at Parklane Hotel.

She said consumers today are reducing spending, purchasing the basic necessities, are becoming more sensitive to prices and promotions and are preferring to shop in areas that are convenient and accessible.

In a recent study, The Nielsen Company (Philippines) Inc. found out that the Filipino shoppers’ average spending declined but their budget on fresh food remains as is.

It was also noted that the decline in spending is seen among middle income consumers.

However, this trend in downsizing to a smaller basket in consumers is not happening in urbanized areas, specifically in
Metro Manila, Central Visayas and Southern Mindanao.

This could be attributed to the areas’ higher salary brackets.

Martinez said that while supermarkets remain to be where shoppers spend most of their money, the economic pressure is causing several of them to shift to more accessible trade outlets.

“Consumers buy only what is needed on a “when needed” basis as they make more shopping trips to make comparisons on prices, among others,” she said.

The same study by The Nielsen Company (Philippines) Inc. shows that convenience, low prices and accessibility are the top factors that shoppers look for in a supermarket.

Price-sensitive

It also indicates that three-fourths of the shoppers are price-sensitive, especially those from Visayas, Northern Mindanao and Southern Luzon.

“Most shoppers know the prices of most items they purchase and are aware when prices change. They are also more sensitive to unit price,” Martinez said.

The financial crisis has also prompted consumers to give up first the indulgence products, including alcoholic drinks, carbonated soft drinks, chocolate, salty snack food and ice cream.

Martinez said promotions will likely be more successful if done for brands of preference while new brands must have a
“compelling reason” for trial as shoppers tend to be loyal to their brands and be selective on the new ones.

At the same time, more consumers are either staying home or going only to their favorite restaurants, but out-of-home consumption is lesser.

Apart from the financial crisis, the key demographic trends have also gradually affected lifestyle and shopping preferences.

Martinez explained that in the country, the household size is shrinking, the population of those who are 60 years old and above is increasing, and there are higher incomes in better job segments, such as the business process outsourcing companies’ workforce.

She said that a “strong partnership” between suppliers and retailers must pave the way for a better understanding of these consumer trends to continue generating growth.