‘Indulgent’ purchases expected to recuperate

As quarantine eases, consumers may start purchasing “indulgent” products as quarantine guidelines alleviates around the country. This is according to Nielsen Philippines Managing Director John Patrick Cua.

Nielsen interviewed partner-retailers on their experiences during the quarantine period. They noted their challenges in purchasing sufficient stocks and in shipping goods to rural areas.

According to Mr. Cua, because people’s activity was limited and public transportation was not available during the quarantine, more consumers are switching to online shopping and in nearby stores.

Considering that buyers focused on purchasing shelf-stable food and non-essential personal care products, “People will, if they can, they will shop less often and they will prioritize things for their safety. So rubbing alcohol, household cleaners, air fresheners. That’s what’s in their basket at the start of the (lockdown),” Mr. Cua said.

He said that sellers need to understand how shopping habits have shifted because of the community quarantine. Consumers are seen to indulge in some “retail therapy” as quarantine eases.

“We are coming out of lockdown and what we’re seeing in the other markets is slowly the indulgent products will recover and the other personal care will eventually recover because the consumer will look to reward themselves,” Mr. Cua said.

“Before, we always think it’s the head of the household, the mother that goes to shop. But during the time, kung sino ang may quarantine pass. It could be the father or the male shopper. We usually have the female shopper,” he said.

Mr. Cua said that the frequency of supermarket shopping has also shifted from weekly to payday or bi-monthly shopping. He said retailers must ameliorate the supply chain inventory and social media.

“Communicate that their store is safe for people to go,” he said. Shopping malls have raised their health and safety protocols to reassure citizens who are still doubtful of going outside because of the coronavirus disease 2019 (COVID-19).

In May, Philippine Amalgamated Supermarkets Association President Steven T. Cua mentioned the strong demand for baking and cooking goods, as well as rubbing alcohol, disinfectants, and hair trimmers, during the quarantine. Inventories had been upgrading after initial logistics problems as the shipping of goods was impeded at checkpoints at the beginning of the quarantine.

Source: Business World Online