But spending for luxury goods seen to continue

MANILA, Philippines — Consumers in the Philippines are likely to maintain spending for luxury goods despite inflation, according to a study of consumer research and data analytics firm Milieu Insight.

The study conducted last March showed that 43 percent of Filipino consumers are likely to have the same spending pattern on luxury goods even with inflation in mind.

It also showed that 23 percent of Filipino consumers are likely to increase their spending on luxury items, while 34 percent said they would spend less on these goods.

The study, which looked into luxury goods consumption in Southeast Asia, covered 500 respondents each from the Philippines, Singapore, Thailand, Indonesia, Malaysia and Vietnam.

Latest data from the Philippine Statistics Authority showed inflation in the country eased for the third straight month in April to 6.6 percent from the previous month’s 7.6 percent due to slower upticks in food, transport and utility prices.

The April inflation rate, however, is still higher than the 4.9 percent print in the same month last year.

Milieu Insight’s study showed that across the six Southeast Asian countries, 42 percent of consumers are likely to retain their spending level for luxury goods, while 19 percent will spend more, and 39 percent will reduce their purchases.

The top luxury items being purchased by Filipino consumers are tech gadgets like computers and mobile phones (64 percent); fashion goods like clothes (53 percent); bags or wallets (50 percent); beauty and wellness products like cosmetics, skincare and fragrances (48 percent); and jewelry such as watches, rings and bracelets (45 percent).

For consumers in the six Southeast Asian countries, the top luxury categories being purchased are tech gadgets (67 percent); fashion (56 percent); beauty and wellness (51 percent); jewelry (45 percent) and bags and wallets (43 percent).

In the Philippines, 74 percent of Filipino consumers buy luxury items for their own consumption, while 22 percent are making these purchases for their collection.

The study also showed 21 percent of Filipino consumers purchase luxury goods with the intention to monetize or resell the items.

Across the six Southeast Asian countries, 79 percent of consumers said they buy luxury goods for their own use, and 19 percent purchase such items to give as presents.

Top reasons cited by Filipino consumers for considering the purchase of luxury goods are product longevity (58 percent), superior product quality (56 percent), and uniqueness of design (53 percent).

The same reasons were cited by Southeast Asian consumers for considering luxury goods with product longevity at 57 percent, superior product quality at 57 percent, and uniqueness at 44 percent.

Milieu Insight associate marketing director Sonia Elicia said the study provides valuable insights into the luxury consumption habits of Southeast Asian consumers.

“As consumers become more ethically conscious, they consider the quality of luxury, such as the durability and longevity of their purchased items which will likely help luxury retail expenditure stay recession-proof,” she said.