Outdoor activities like dining out and shopping peak during the holiday season. However, though more people are now able to go out, there are still many challenges that may affect the appetite of holiday consumers.
A recent exclusive webinar Araneta City hosted for to its lessees discussed the trends and factors that shape consumer attitudes this Christmas season.
Kantar’s shopper insights director Laurice Obana identified the factors that may dampen the spending attitude of Filipinos, such as the increasing price of gasoline and other petroleum products, sagging consumer confidence, and spiking inflation.
“This is going to be a more positive Christmas, but it wouldn’t be fully bongga, because there are very real factors holding us back,” Obana said.
The pressure of these factors is being felt across all socio-economic classes. Upper- to middle-class consumers have seen a sharp decrease in income, while those in the lower socioeconomic brackets are feeling the pinch because of skyrocketing prices.
Obana said that given these factors, it is important for retailers to understand where the money of ordinary Filipino shoppers goes. Based on Kantar data, the bulk of consumers’ budget goes to essentials, with food a top item on the list. Second is preventive healthcare like vitamins, medications and healthy practices such as exercise. Third, Filipinos are spending more on insurance, savings and investments.
Lastly, Pinoys are now starting to allocate money for recreation and travel. This is primarily driven by the idea of “revenge travel,” since a lot of people were unable to visit destinations due to border restrictions.