MANILA – Most Filipino consumers felt no change in their purchasing ability in 2014 despite a strong growth of 6.1 percent in the country's gross domestic product (GDP), according to a survey conducted by Kantar Worldpanel.
The study showed that almost half of Filipino consumers or 48 percent felt that their household purchasing ability is no different from that of 2013.
Only 27 percent of households said their purchasing power has improved, while 24 percent said purchasing power waned.
The survey also revealed that Class D and E homes were slightly less optimistic with 25 percent and 24 percent of those surveyed saw their purchasing ability diminished compared to 2013, while 19 percent of upscale homes (Class A, B,C homes) believed their buying power lessened.
The top ranking concern that affected purchasing capability was the rising food and commodity prices (61 percent) while the second factor is attributed to high cost of electricity or water (10.4 percent).
Also cited by the respondents as factors were natural calamities (5.6 percent), rising fuel prices (5.2 percent), and health concerns 4.5 percent.
However, the study showed that despite these concerns, households saw increased spending for food, fuel, light and water, education, non-alcoholic beverages, and transportation.
Upscale homes increased spending on fuel, light and water more than food, while downscale homes spent more on food.
ABC homes also gave more priority to communications spending as opposed to DE homes that see non-alcoholic beverages as more important than calling or texting.
According to the study, most Filipino consumers also project no changes in their purchasing power in the next six months.
However, 44 percent of homes are optimistic about their future spending.
“Despite a slump in global FMCG consumption, the future looks bright for the Philippine FMCG [fast-moving consumer goods] market. The consumers’ optimistic outlook reflects a more prosperous economy in the months to come,” said Lourdes Deocareza, New Business Development Head for Kantar Worldpanel.
The study, conducted on December 2014, was based on the research extracted from the Kantar Worldpanel Philippine’s regular consumer panel survey.
Kantar Worldpanel tracks the shopping behavior of 3,000 homes in urban and rural areas across the country.