Marketing research firm Kantar estimates purchases made by digital shoppers on fast-moving consumer goods (FMCG) will grow by 25 percent this year.
Kantar said three-fourths of sales of FMCG went through digital channels between 2016 and 2019.
Kantar’s Digital Shoppers for Brand Growth research show digital shoppers now account for 75 percent of total FMCG sales in the Philippines based on the purchasing behavior of digital shoppers across 3,000 homes nationwide from January 2016 to June 2019.
The report found that a digital shopper behaves holistically — both online and offline. The study also covers where they shop, what products and how many they buy, and at what price they actually purchase the items for.
The research found a digital shopper spends more than 25 percent more on FMCG products than a non-digital shopper, P38,000 per year against P31,000 per year.
While digital shoppers have access to the internet, they still continue to purchase FMCG products in modern trade channels, particularly in supermarkets and hypermarkets.
The research said in 2018, digital shoppers spent P461 billion in these brick and mortar establishments.
According to data from Kantar, the local FMCG market remains dynamic. However, not all FMCG brands are able to sustain growth. Nearly half or 46 percent of the 300 FMCG brands it tracks registered growth in 2018, and this growth increased to 71 percent in 2019.
On the average, Kantar notes that only 37 percent of these brands sustained their growth during the two-year period.
Kantar said FMCG manufacturers should develop and implement digital campaigns that will convince digital hoppers to buy their products in both online and offline channels.
