Filipinos spend an average of P800 a month on sari-sari stores, with alcohol and tobacco getting the bulk of their budget.
The consumer habit study found that Filipinos continue to allocate a portion of their monthly budget on vices like alcohol and tobacco, alongside other beverages and hygiene supplies.
Using data gathered from 200,000 sari-sari stores nationwide, data analytics start-up Packworks said cigarettes, alcohol, hygiene products, soda drinks and powdered drinks were the top 5 essential goods that make up the monthly budget of a regular Filipino household.
“It’s a war amongst cigarettes and liquor, beverages and hygiene products. While Filipino households continue to prioritize essential goods, it’s apparent that many consumers have formed habits or indulgences that significantly influence their spending decisions,” said Packworks data product manager Samantha de Guzman.
Packworks intelligence tool Sari IQ also revealed disparities when it comes to brand preferences. While the categories of goods purchased were largely uniform, the specific brands that consumers gravitated towards showed significant regional variance.
The National Capital Region led the country in consumer spending with an average weekly basket size of P452.32 or P1,809.28 a month. Consumers from NCR showed a clear preference for brands such as Marlboro and Fortune for cigarettes, Cream Silk for hair care, Emperador Light for alcoholic beverages and Surf with Fabcon for detergent.
Based on the study, Taguig City figured as a key player, contributing 23 percent to the total gross merchandise volume in the region.
Sari IQ data showed that consumers from SOCCSKSARGEN allocate a significant portion of their budget to buy local rum brand Tanduay despite smaller weekly spend of P107.20 or P428.80 per month.
Meanwhile, brands such as Bear Brand and Nescafé 3-in-1 were among the popular choices for powdered drinks in the region, especially in General Santos City, which contributes 32 percent to the region’s GMV.
The study revealed that 13 of the 17 regions in the Philippines spent the most on cigarettes, while three others splurged on alcoholic drinks. Meanwhile, consumers in Zamboanga Peninsula preferred to spend on powdered coffee.
“At the core, Filipino households across the country have the same basic needs. But when you zoom in, you notice the diversity in local tastes, the loyalty they hold for certain brands and how regional marketing campaigns even play a major role in determining which specific products make it into their shopping baskets,” de Guzman said.
“The consistent demand for these products highlights their importance in the retail mix, but the variance in brand preference provides an opportunity for strategic product placement and targeted marketing campaigns,” de Guzman said.