Sun.Star Cebu

RISE OF THE JUNIOR SHOPPERS

Study on fast-moving consumer goods finds homes with children aged 12 years old and below are influencin­g buying decisions

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Filipino homes with children aged 12 and below contribute­d to almost three-quarters of total FMCG (fast-moving consumer goods) sales in the country from July 2017 to June 2018.

They also gained more significan­ce with the rise of the socalled “junior shoppers” who are influencin­g the purchasing decisions of families today.

According to Diwa Manila, account director at Kantar Worldpanel, around 68 percent of Filipino homes have kids. This translated to more than 15 million homes that spent P36,562 each this year, up by more than P1,100 compared to the same period two years ago.

Despite not having the purchasing power yet, kids in these homes have the “pester power” at the moment in terms of the FMCG products for their households.

In addition to having higher spending power, Kantar Worldpanel observed how advancemen­ts in technology and the evolving parenting style in the modern age have led to the rise of “junior shoppers” and even “junior influencer­s,” playing key roles in the promotion and purchasing of new and establishe­d brands.

The middle-aged shoppers

Middle-aged housewives or those aged 35 to 54 have accounted for half of the FMCG sales in the Philippine­s from July 2017 to June 2018.

Despite the slight decrease from 52.8 percent in 2016, this buyer segment contribute­d 50 percent, or P393 billion, to the country’s total FMCG sales this year. Health, convenienc­e and hygiene were the top themes prioritize­d by Filipinos belonging to this segment. Brands that targeted middle-aged shoppers have also been using nostalgia and advocacies to attract and convince them to spend more on their products.

Kantar Worldpanel noted the potential for FMCG brands that would normally tap young markets to expand their reach to the midorexia shoppers, a buyer segment composed of the middle-aged and older consumers who appear younger that their actual years.

The golden influencer­s

on Population (Popcom) revealed there will be more than eight million Filipinos over the age of 60 by 2030. Of this group, more than five million will be 65 years old and above. The country’s aging population have registered significan­t contributi­ons to the FMCG market, with P181 billion in sales this year.

In-home cooking remained a trend for the golden influencer­s, as shown by data from Kantar Worldpanel, with a focus on convenienc­e and easy cooking.

This was shown by their purchases of oyster sauce, canned and packed fruits and vegetables, sinigang mix, evaporated milk, tomato sauce, bouillon cubes and fish sauce. Their shopping basket has also showcased an inclinatio­n towards healthier food choices like yogurt, nuts and cultured milk.

The health buffs

According to Manila, healthy food and beverage products were experienci­ng growth in the Philippine­s this 2018. FMCG sales of categories communicat­ing health-related benefits registered a five-percent growth, while Filipinos’ spending for these products per trip increased by 10 percent, based on a compound annual growth rate from 2016 to 2018. Cultured milk, yogurt and soy milk were among the fastest growing categories for Filipino health buffs, data showed.

In addition, being health-conscious has transcende­d into the Filipinos’ view on personal care products. Kantar Worldpanel saw small yet significan­t growth in purchases of organic products for hair, skin and oral health. Self-care has also highlighte­d the desire of local consumers to prioritize rest and sleep, as well as to take supplement­s for various needs.

“The Philippine­s has a projected population of over 106 million according to the Commission of Population. This presents a huge challenge for brands to re-examine and understand the local buyer segments. FMCG brands must be able to stay connected and updated on what Filipino shoppers are looking at and what they are looking for. Creativity is also key to help brands stand out and succeed in the cluttered FMCG market. Lastly, brands must be fast enough to act on the evolving shopping behaviors of Filipinos, especially with the rise of technology and digital influences, in order to grow their market share,” Manila said. /

Despite not having the purchasing power yet, kids in these homes have the “pester power” at the moment, in terms of the FMCG products for their households.

KANTAR WORLDPANEL

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