Filipinos shop less and less in traditional channels like public markets and sari sari stores for fast-moving consumer goods (FMCG) and use modern channels such supermarkets and convenience stores due to better shopping experience and convenience the latter offer.
The Kantar SmartShopper Study in its annual report on shoppers’ actual behavior and perception of retailers showed Puregold, SM, Gaisano, Mercury Drug and Robinsons are the stores of choice of shoppers
The study was conducted by the Worldpanel Division of Kantar based on a survey of 2,000 urban households nationwide from July 2018 to June 2019.
Kantar data showed traditional trade channels now just account for 43 percent of FMCG sales, down 45 percent from the previous survey.
Kantar said emerging channels which include hyper/supermarkets, department stores, convenience stores, personal care stores, direct selling, drug stores, gifting, and groceries now account for 50 percent of the FMCG market. It grew by 16 percent percent, double the growth of the growth of traditional trade channels.
The study also revealed convenience has consistently been the most important factor Filipino shoppers consider when choosing where to purchase FMCG goods since 2015.
However, the shoppers’ definition of convenience continues to evolve.
When in the past convenience meant accessible location, shoppers today consider a retailer convenient if it offers a range of services that makes shopping easier.
These include payment assistance, specialty counters, car parking assistance, baggers
assistance, price checker and kiddie carts.
Location is now just a second consideration.
The study said Puregold, SM, Gaisano, Mercury Drug and Robinsons, collectively account for 15 percent of total FMCG sales and all enjoyed significant growth in the past year.
The study added Puregold and Mercury Drug grew the most in value shares at .4.6 percent from 4.1 percent , respectively.
Mercury Drug improved from 2.4 percent to 2.6 percent.
“Shopping is expected to be more pleasurable and easier as lifestyles become busier and fast-paced. Retailers thus need to be sensitive and more creative in finding ways to cater to these customer expectations. When this happens, customers not only spend more time in the store but their frequency of visiting potentially rises as they become more loyal to these stores,” said Des Deocareza-Lozano, director at Kantar for Worldpanel Division.
Deocareza-Lozano added: “We need to constantly think about what drives shoppers to buy in specific channels as they become more complex and demanding. Convenience as we know it today may be redefined and can become a ‘given’ for shoppers. Both manufacturers and retailers then need to bear this in mind as they map out their growth plans this year.”
