THE FILIPINO CONSUMER BEHAVIOR

Reference: http://www.rappler.com/business/38219-4-factors-explainfilipino-buying-behavior by Cecilia Cabiao (Sept. 7, 2013) 4 FACTORS

EXPLAIN FILIPINO BUYING BEHAVIOR
CONSULTING COMPANY: KANTAR WORLDPANEL

Filipinos like to look good

To understand a Filipino consumer, businesses should focus on 4 factors: beauty,
hygiene, health and convenience.
Filipino women care about their looks, Barra said, and 72% of them specifically like
to improve their hair and change their complexion.
This is supported by the purchase growth of 12.6% in hair conditioners and 6.3% in
hand and body lotion from June 2009 to June 2013.
Being fair is a Filipino consumers definition of beauty. Proof is the 10% purchase
increase in whitening products versus just 1% in non-whitening products from 2011
to 2013.
The purchase of whitening body lotion grew 8% compared to non-whitening lotion's
5%.
Notable growths were observed from Visayas and Mindanao across socio-economic
classes C and E.
The beauty trend is also being driven by young households (those with children 12
years old and below) and adult homes (those whose members are 19 and up).
They buy mostly from supermarkets and direct sales channels.
Germ protection need rises

Filipinos also purchased 19% more hand sanitizers and 9% more baby wipes/wet
tissues from June 2009 to June 2013.
In addition to germ-protection, Filipinos care more about their hygiene with a 54%
increase in razor purchase, 11% in panty liners and 10% in sanitary pads.
Similar to the trend on beauty, hygiene was driven by Visayas and Mindanao
consumers from socio-economic classes D and E who are members of young and
mixed households (those with children 12 and below, and teens).
We buy healthy
Fun runs, exercise and other physical activities have been promoted and practiced
more by Filipinos in recent years. In addition, Filipinos are now choosing the
healthier lifestyle as shown in their food product choices.
On food purchase over the past 5 years, there has been an increase in cereals
(17%), yoghurt/cultured milk (9%), canned vegetables (6%) and biscuits (6%).
For beverages, purchase increases have been seen in soy milk (20%), bottled water
(12%), energy/sports drink (10%), fruit/vegetable juices (7%) and powdered milk
(6%).
These patterns in purchase behavior have been observed more in North Luzon and
Mindanao across socio-economic classes AB, C and E and in mixed and adult
homes.
Lifestyle on the go
Filipinos want food, beverage and cooking choices to be fast, easy and convenient.
Over the 5 past years, growth of purchase in ready-to-drink choco drinks (21%),
ready-to-drink coffee (17%) and ready-to-drink energy/sports drinks (11%) have
increased.

Quick and easy meal purchases have also increased including those of instant
noodles (9%), instant pasta (7%) and canned meat (7%).
There has also been purchase growth among products that make cooking easy,
including meal flavorings (17%), liquid seasoning (11%), breading (7%) and bouillon
(5%).
These patterns have been seen more in South Luzon and Mindanao, among
consumers from the socio-economic class C who are mostly from young and adult
homes.
Businesses may focus on these 4 major categories in order for them to better
respond to Filipinos preferences, Kantar's Barra stressed.

Reference: http://www.rappler.com/business/features/32721-what-influencesfilipinos-decision-to-buy-products Rappler.com (July 2, 2013) 4 FACTORS THAT

INFLUENCE FILIPINOS DECISION TO BUY
Filipino consumers are more likely to stick to brands they know and buy products if
these are accompanied by freebies, according to a Nielsen online survey
MANILA, Philippines - Filipino consumers are more likely to stick to brands they
know and buy products if these are accompanied by freebies.
This was according to a Nielsen online survey of over 29,000 internet respondents in
58 countries.
The survey results, which were released on Tuesday, July 2, also showed that
advertising especially on TV strongly influences Filipino respondents
preference for a brand.
Below are 4 key insights from the online survey:

1. Filipinos love freebies

About 76% of Filipino respondents said they are more attracted to buy products that
come with free gifts.
The allure of good product promotions is strongest in developing countries such as
the Philippines where practicality and creativeness are needed in order to stretch the
budget," explained Stuart Jamieson, managing director at Nielsen Philippines.
"Filipinos may be ready to spend but still they are on the lookout for the best deals
and promos. Offering extras or gifts to consumers will get them to buy a product over
another," he added.
Other developing countries trailing behind respondents from the Philippines lured by
freebies are Vietnam (75%) and Greece (74%).
The Philippines exceeds the world average of 58% and Asia Pacific region's average
of 61%.

Percentage of respondents who strongly/somewhat agree that products with free gifts are more
attractive to buy. Source: Nielsen Global Consumer Survey

2. Filipinos shop around, loyal to brands

About 77% of Filipino respondents said that they usually have preferred brands and
types before buying.
This is higher than the global average of 67% and the Asia Pacific region's 69%. The
Filipino respondents came only second to India which had 80% respondents who
agreed.
In this report, we found out that Filipino consumers seldom switch to another brand
and remain devoted to their favorite shampoo (63%), deodorant (56%) and coffee
(53%) brands, notes Jamieson.
This does not jibe with observations recently shared by a casual dining restaurant.
An official of Pancake House Inc has told Rappler that the average Filipino consumer
is open to new concepts but not very loyal.
The Nielsen survey acknowledged this. About 79% of the Filipino respondents shop
around to buy the most value-for-money product.
3. TV remains main source of product info
Television remains the main source of product information for Filipino respondents
for items, such as

cosmetic/skin care

food and beverage

personal care

health care/medicine

household product

home appliance

Online sources, however, lords all other sources of information for other products like
cars.
Magazines are the favored source for jewelry and in-store display and promo
packages for clothing items.
4. Advertising influence brand
Respondents from the Philippines (78%) and Korea (79%) said commercials
increased their brand preference.
The two markets contributed to Asia Pacific's score (67%) as having the most
consumers in the world saying that advertising influences their preference for a
brand.
About 73% of Filipino respondents agreed that the image created by advertising
influenced their decision to buy a product. This is 9 points more than the region's
64% average.

Percentage of respondents who strongly/somewhat agree that "commercials will increase my preference for the
brand." Source: Nielsen Global Consumer Survey

Liking the commercial and deciding to buy the product, however, are two different
things for Filipinos. Only 48% of Filipino respondents agreed that they would buy a
product because they liked its commercial. The Asia Pacific average was 51%.

Percentage of products who strongly/somewhat agree that the "product image created by commercials will
affect my decision to buy the product." Source: Nielsen Global Consumer Survey

- Rappler.com