Your business is our business. Join our senior anchor Rico Hizon on The Exchange.
Spending is next to none for our kababayans when it comes to giving Christmas cheer. But are preferences and behaviors changing as we transition to post-COVID life and with the country no longer under a public health emergency? Let's now have an exchange with Kantar Worldpanel's Nino Nierva.
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Spending is next to none for our kababayans when it comes to giving Christmas cheer. But are preferences and behaviors changing as we transition to post-COVID life and with the country no longer under a public health emergency? Let's now have an exchange with Kantar Worldpanel's Nino Nierva.
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NewsTranscript
00:00 From news and views, issues and opportunities, we'll have in-depth conversations with decision-makers to find out what they know and what they think.
00:11 I'm Rico Gizon inviting you to join the exchange because your business is our business.
00:20 With the brrr months now upon us, the country's famously long Christmas season has begun. Filipinos are preparing to open their wallets for all the gift-giving and merry-making.
00:36 But with high prices and economic uncertainties, are our Kababayans adjusting to the times? And for businesses, are they expanding their operations and tapping more workers due to higher Christmas demand?
00:51 The vision of holiday employment in our C-SWEET Vision.
00:59 [Music]
01:08 Spending is next to none for our Kababayans when it comes to giving Christmas cheer.
01:15 But are preferences and behaviors changing as we transition to post-COVID life and the country no longer under a public health emergency?
01:25 Let's now have an exchange with Canto World panel's Nino Nierva. Nino, great to have you with us.
01:31 Based on your latest findings, are Filipino consumers ready to spend big this holiday season compared to the past years under COVID?
01:39 Thank you for having me, Rico. Christmas outlook in the Philippines will remain to be optimistic and Filipino shoppers will continue to spend more during the holidays.
01:50 Last year, in fact, we saw a plus 7% growth in FMCG during the holidays versus the rest of the months.
01:57 Yes, Filipinos, as you say, Nino are really eager to open their wallets and splurge.
02:05 But do we really have the purchasing power when the prices of goods are so high?
02:11 Inflation remains at elevated levels and basic stables are so expensive.
02:18 Yes, actually Rico, even with higher prices, Filipinos will still be spending during the holidays because number one, this season has been part of our culture.
02:30 So we need to spend more and celebrate the season.
02:33 And at the same time, come Christmas, particularly during the end of the year, we have a higher purchasing power because of the 13th month, the bonuses, which allows us to spend a little bit more during the holidays.
02:45 All right. So spend, spend, spend during the BRRRR months and then tighten those purse strings. Start saving in the new year.
02:55 Exactly. And even if prices are still going to get higher, Filipinos will still find a way to celebrate and enjoy the holidays.
03:07 But with rising prices, what we do observe is that shoppers are looking for more value now with what they purchase.
03:14 Meaning they're becoming more careful in the terms of their brand choices.
03:18 All right. So basically look for those bargains in shopping malls and boutiques.
03:25 Which kinds of goods and services, Nino, do we expect our Kapabayans to splurge on this holiday season, given as we've been talking about purchasing constraints?
03:38 Yeah. We like to eat when we celebrate, right? Which shows what shoppers would like you to prioritize during the holidays.
03:46 So these are your food products that are usually served during the celebrations.
03:50 If I may name an example, the fruit salads, pasta, cheeses, these are the categories that will typically gain importance during the shopping baskets in the Christmas season.
04:00 All right. Save for that Noche Buena on Christmas Eve. But what about clothing, toys, and bags?
04:12 Will our Kapabayans be spending on these items during the holiday season so they can surprise their loved ones, not only with food, but also with really nice products?
04:28 Yep. That's an interesting point. Actually, it's not part of our project, of our study.
04:33 But if you look at what's happening in the trend of FMCG, this can also be applied in terms of clothing and even non-FMCG categories.
04:41 They will likely also look for value for what they buy and at the same time look for what they can afford in today's setting.
04:48 When you say FMG, what does that mean, Nino?
04:53 Yeah. FMCG stands for Fast Moving Consumer Goods.
04:58 So these are the categories that they usually find in the grocery stores.
05:02 Could be your food, your beverages, your personal care, and even your household care categories.
05:07 So the ones we always see in the grocery stores.
05:10 All right. We've seen growth slow down from 6.4% to 4.3%, inflation rising from 4.7% to 5.3%,
05:22 price caps on rice, onion prices also continuing to rise, vegetable prices.
05:30 Do you think that the governments can still do something to improve Filipino consumer sentiment before the Christmas holiday comes?
05:40 That's a very interesting question.
05:44 In my own point of view, yes, I think governments still have some actions and some initiatives that they can really help our consumers to ease off their pandemic and inflation problems.
05:56 And I think it's going to be up in the hands of our government to do something about it, especially during the upcoming holiday season.
06:05 Thank you so much for this Filipino Consumer Exchange.
06:08 Nino Nieva of Kantar World Panel.
06:13 And coming up on the Exchange where your business is our business.
06:18 How are Filipinos keeping the holiday spirit alive despite high prices and other economic concerns?
06:25 We speak to CitizenWatch Philippines.
06:28 And how are businesses adjusting manpower in anticipation of the holiday demand?
06:34 We have an exchange with Caliber straight ahead right here on CNN Philippines.
06:41 News you can trust.
06:43 [Music]