Filipinos opt for best value brands, says Kantar

MANILA, Philippines — Filipino shoppers are becoming more discerning in their choices in fast moving consumer goods (FMCG) channels as they opt for brands and retailers offering the best value, according to the latest study by Kantar.

Kantar, which tracks the FMCG purchases of 5,000 local households, said Filipinos are opting for brands and retailers that offer the most value, convenience and product assortment to get their money’s worth amid inflationary times.

“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,”said Laurice Obana, Shopper Insight director at the Worldpanel Division of Kantar in the Philippines.

“What we have seen is that, in general for packaged goods, shoppers are coping with rising prices by being more open to value brands. To some extent, however, they also take into consideration where to shop. 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 said.

Kantar said  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.

It shared that 41 percent of FMCG this year were made in neighborhood sari-sari stores, up by  six percent from  2020.

In contrast, hypermarkets and supermarkets posted a six percent decline in value share to 28 percent from 34 percent.

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

“Value delivery in 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,”Kantar said.

Meanwhile, Kantar launched its first most chosen retailers in the Philippines report, where it evaluates both national and regional retailers based on the Consumer Reach Points (CRP) method.

CRP calculates the number of shoppers and the number of times they have made a purchase in a particular retailer within 12 months. This measure accounts for in-home, direct to consumer purchase within 132 FMCG categories tracked by Kantar.

According to the report, national players took six of the 10 spots in Kantar’s ranking of the top retailers in the Philippines as of September.

Puregold emerged as the most chosen retailer among Filipino shoppers nationwide, followed by SM Supermarket, Mercury Drug and Robinsons Supermarket.

Convenience stores Alfamart and 7-Eleven ranked seventh and 10th, respectively, driven by their numerous locations in the country.

Kantar, however, noted that retailers which are more regionally based have placed significantly in the national ranking.

These are CSI Supermarket in Northern Luzon, which ranked fifth; Cebu-based Prince Hypermart, sixth;  Gaisano Grand in the Visayas and Mindanao, eighth; and LCC Supermarket in Southern Luzon  (ninth).

Obana said  retailers can grow by either attracting more buyers to their stores or encouraging existing shoppers to spend more in their store.

With the number of retail options available to the consumer, Kantar said the CRP highlights how being the retailer of choice every single time a shopper decides to buy is testament to how a retailer is able to continue to remain relevant to the needs of the shopper.