Value is the top of mind for Filipinos nowadays in choosing brands of Fast-Moving Consumer Goods or FMCG to adapt to the persisting inflationary headwinds. This is according to the latest study of Kantar, one of the world's leading data, insights, and consulting companies.

The Kantar study, tracking the FMCG purchases of 5,000 local households and the largest shopper panel in the Philippines, showed that Filipinos have become more discerning in their choices, as they opt for brands and retailers that offer the most value, convenience, and product assortment to get their money's worth.

"Filipinos put a premium on value. While value can be as straightforward as cheaper goods or paying less for the same quantity, other factors such as the increase in gas prices, traffic, and uncomfortable modes of transportation have redefined value in more encompassing terms when it comes to shopping. What we have seen is that, in general, for packaged goods, shoppers are coping with rising prices by being more open to value brands," said Laurice Obana, Shopper Insight Director at the Worldpanel Division of Kantar in the Philippines.

However, she said to some extent, they also take into consideration where to shop.

Consumers adapting

"Nowadays, with multiple retailers and channel options within reach, shoppers can easily adapt to what would best fit their budgets and lifestyle that will address their needs at the moment," Obana added.

According to Kantar, there is a bit of pressure on Hypermarkets and Supermarkets as most Filipinos who are feeling the economic strain are buying their basic FMCG needs in smaller proximity stores.
In fact, the study showed that 41 percent of FMCG purchases in 2022 are made in neighborhood sari-sari stores, a six percent increase compared to purchases made in 2020.

Meanwhile, a six percent value share decline in hypermarkets and supermarkets was noted from 34 percent in 2020 to 28 percent in 2022.

Obana adds that Filipino shoppers are discerning about the choices they make when it comes to their channel and retailer of choice.

"Value delivery in the forms of rewards, lower prices, or promotions is a given. Convenience or the ease of access and availability of options are also important factors that shoppers now consider," she expressed.