Consumer Lifestyles in the Philippines
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Market Research on Consumer Lifestyles in the Philippines...
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CONSUMER LIFESTYLES IN THE PHILIPPINES Euromonitor International September 2013
CONSUMER LIFESTYLES IN THE PHILIPPINES
LIST OF CONTENTS AND TABLES Current Top Five Consumer Trends ........................................................ ..................................... 1 Workforce Moving To the Provinces ......................................................................................... 1 Filipinos Embrace Vertical Living ......................................................... ..................................... 1 More Filipinos Can Afford To Travel for Leisure ....................................................................... 2 Fast Smartphone Adoption Makes Up for Low Broadband Penetration.................... ................ 3 Filipinos Are Becoming More Health Conscious ....................................................... ................ 3 Consumer Segmentation .............................................................. ................................................ 4 Babies and Infants ......................................................... ........................................................... 4 Kids............................................................. .............................................................. ................ 5 Tweenagers ........................................................ ................................................................. ..... 7 Teens....................................................... ................................................................. ................ 8 Young Adults ............................................................................................................................ 9 Middle Youth ....................................................... ................................................................. ... 10 Mid-lifers ............................................................. ................................................................. ... 11 Late-lifers ............................................................ ................................................................. ... 13 Table 1 Chart 1
Consumer Segmentation and Population Data 2000, 2005, 2010, 2011, 2012, 2015 .................................................................................... ... 14 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020 ............................................................... ................................... 15
Housing and Households ........................................................................................................... 15 Home Ownership ................................................................................................................. ... 15 Household Profiles.................................................................................................................. 16 Running Costs ........................................................................................................................ 17 Table 2 Chart 2
Housing and Households Data 2000, 2005, 2010, 2011, 2 011, 2012, 2015 ........ 18 Number of Households by Disposable Income Bracket 2005, 2010, 2015 ............................................................. .............................................. 19
Money and Savings ................................................................................................................. ... 20 Attitudes Toward Payment Methods .............................................................. ......................... 20 Savings ............................................................... ................................................................. ... 20 Loans and Mortgages ............................................................................................................. 21 Table 3 Chart 3
Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015 ................. 22 Consumer Lending Compared with Savings and Savings Ratio 20002015 ............................................................. .............................................. 22
Eating and Drinking ...................................................................................................... .............. 23 Eating Habits .......................................................................................................................... 23 Drinking Habits ....................................................................................................................... 25 Table 4 Chart 4
Eating and Drinking Data D ata 2000, 2005, 2010, 2011, 2012, 2015 ................. 26 Real Growth in Consumer Expenditure Compared with Real Growth in Consumer Expenditure on Food and Alcoholic Drinks 2000-2015 ......... 27
Grooming and Fashion ............................................................................................................ ... 28 Perceptions of Beauty............................................................... .............................................. 28 Female Grooming .......................................................... ......................................................... 28 Male Grooming ......................................................................................................... .............. 29 Fashion Trends .............................................................. ......................................................... 30 Table 5
Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015 ............ 32
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CONSUMER LIFESTYLES IN THE PHILIPPINES
LIST OF CONTENTS AND TABLES Current Top Five Consumer Trends ........................................................ ..................................... 1 Workforce Moving To the Provinces ......................................................................................... 1 Filipinos Embrace Vertical Living ......................................................... ..................................... 1 More Filipinos Can Afford To Travel for Leisure ....................................................................... 2 Fast Smartphone Adoption Makes Up for Low Broadband Penetration.................... ................ 3 Filipinos Are Becoming More Health Conscious ....................................................... ................ 3 Consumer Segmentation .............................................................. ................................................ 4 Babies and Infants ......................................................... ........................................................... 4 Kids............................................................. .............................................................. ................ 5 Tweenagers ........................................................ ................................................................. ..... 7 Teens....................................................... ................................................................. ................ 8 Young Adults ............................................................................................................................ 9 Middle Youth ....................................................... ................................................................. ... 10 Mid-lifers ............................................................. ................................................................. ... 11 Late-lifers ............................................................ ................................................................. ... 13 Table 1 Chart 1
Consumer Segmentation and Population Data 2000, 2005, 2010, 2011, 2012, 2015 .................................................................................... ... 14 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020 ............................................................... ................................... 15
Housing and Households ........................................................................................................... 15 Home Ownership ................................................................................................................. ... 15 Household Profiles.................................................................................................................. 16 Running Costs ........................................................................................................................ 17 Table 2 Chart 2
Housing and Households Data 2000, 2005, 2010, 2011, 2 011, 2012, 2015 ........ 18 Number of Households by Disposable Income Bracket 2005, 2010, 2015 ............................................................. .............................................. 19
Money and Savings ................................................................................................................. ... 20 Attitudes Toward Payment Methods .............................................................. ......................... 20 Savings ............................................................... ................................................................. ... 20 Loans and Mortgages ............................................................................................................. 21 Table 3 Chart 3
Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015 ................. 22 Consumer Lending Compared with Savings and Savings Ratio 20002015 ............................................................. .............................................. 22
Eating and Drinking ...................................................................................................... .............. 23 Eating Habits .......................................................................................................................... 23 Drinking Habits ....................................................................................................................... 25 Table 4 Chart 4
Eating and Drinking Data D ata 2000, 2005, 2010, 2011, 2012, 2015 ................. 26 Real Growth in Consumer Expenditure Compared with Real Growth in Consumer Expenditure on Food and Alcoholic Drinks 2000-2015 ......... 27
Grooming and Fashion ............................................................................................................ ... 28 Perceptions of Beauty............................................................... .............................................. 28 Female Grooming .......................................................... ......................................................... 28 Male Grooming ......................................................................................................... .............. 29 Fashion Trends .............................................................. ......................................................... 30 Table 5
Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015 ............ 32
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Real Growth in Consumer Expenditure Compared with Real Growth in Consumer Expenditure on Clothing, Footwear and Personal Care 2000-2015 ............................................................... 32 Cancel Download And................................... Print
Health and Wellness .................................................................................................................. 33 Attitudes To Health and Well-being ........................................................................................ 33 Obesity ................................................................................................................................... 34 Attitudes To Smoking.............................................................................................................. Smoking.............................................................................................................. 34 Table 6 Chart 6
Health and Wellness Data 2000, 2005, 2010, 2011, 2012, 2015 ............... 35 Real Growth in Public and Private Expenditure on Health Compared with Healthy Life Expectancy at Birth 2000-2015 ....................................... 36
Shopping Habits ..................................................... ................................................................. ... 37 Main Household Shop ............................................................................................................ 37 Shopping for Big-ticket Big -ticket Items ............................................................... ................................... 38 Personal Shopping ................................................................................................................. 38 Shopping Online ....................................................................................................... .............. 39 Table 7 Chart 7
Shopping Data 2000, 2 000, 2005, 2010, 2011, 2012, 2015 ................................. 40 Index of Retail Sales Compared with Real Growth in Retail Sales through Hypermarkets, Supermarkets and Internet Retailing 20002015 ............................................................. .............................................. 40
Leisure and Recreation .............................................................................................................. 41 Staying in ............................................................ ................................................................. ... 41 Going Out ............................................................................................................................... 42 Sport and Fitness.................................................................................................................... 42 Vacations ............................................................ ................................................................. ... 43 Public Holidays, Celebrations and Gift-giving ........................................................... .............. 43 Table 8 Chart 8
Leisure and Recreation Data 2000, 2005, 2010, 2011, 2011 , 2012, 2015 ........... 44 Percentage of Households in Possession of Cable TV; Satellite TV System; Internet Enabled Computer; Mobile Telephone; Video Games Console 2000-2015 ......................................................... .............. 46
Getting Around ........................................................................................................................... 46 Private Transport ................................................................................................................. ... 46 Public Transport...................................................................................................................... 47 Commuting ............................................................................................................................. 47 Air Travel ............................................................ ................................................................. ... 48 Table 9 Chart 9
Transport Data 2000, 2005, 2010, 2011, 2012, 2015 ................................. 48 Real Growth in Consumer Expenditure Compared with Real Growth in Consumer Expenditure on Transport Services 2000 -2015..................... 49
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CONSUMER LIFESTYLES IN THE Cancel Download And Print PHILIPPINES CURRENT TOP FIVE CONSUMER TRENDS
Workforce Moving To the Provinces Metro Manila is no longer the only destination o f choice for call centre and business process outsourcing (BPO) companies wishing to set up new shops and expand. The industry employs about 780,000 workers, and this number is expected to increase to 926,000 in 2013. In 2013, the government, through the Department of Science and Technology and the industry group Information Technology and Business Process Association of the Philippines (IBPAP), has added more secondary cities to its yearly list of ―Top 10 Next Wave Cities.‖ The list now includes Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, City , Metro Bulacan, Metro Cavite, Metro Laguna, Metro Naga and Metro Rizal. Gillian Joyce Virata, from IBPAP, has explained that many investors are now looking to move out of Metro Manila to cut costs: ―The strong peso definitel y has an effect. To mitigate costs co sts some firms are looking to go outside of Metro Manila or are postponing expansion.‖ In the provinces, especially in designated Freeport Zones, companies c an access cheaper manpower, land and office rents. In addition, they get incentives from the provincial governments as a reward for creating more jobs, especially for young college graduates. Traditionally, college graduates from the provinces have had to move to the capital for jobs. According to the Cebu Chamber of Commerce and Industry (CCCI), in Cebu City, a top alternative call centre and BPO destination to Metro Manila, the minimum wage is 37% less than in Metro Manila and the cost of living is at least 30% cheaper. In 2013, three new BPO companies have chosen to set up shop in the Province. Even multinational companies are moving their global backroom operations to the country‘s secondary cities. IBM Corp has announced in 2013 that it will open a BPO facility in Naga City, its first facility outside of Metro Manila. According to IBM Philippines, the t he company‘s expansion in Naga affirms its commitment to help develop ta lent in next wave cities in the Philippines. The government counts on the call centre and BPO industry to transform the provinces. When call centre and BPO companies began to operate in Metro Manila in the early 2000s, they provided employment opportunities for Filipinos who would have otherwise gone abroad. They also helped to change the commercial landscape of the Philippine capital. The industry and its young educated workers, whose spending power is relatively higher, contributed to the growth of ancillary businesses, such as transport, property, telecom, restaurants and fast food. The government started to encourage the industry to move out from Metro Manila in 2008. The President at the time, Gloria Macapagal-Arroyo, had an ambitious goal to have a call centre in every province in the country. The industry started to consider the option to save on costs, also given the high attrition rate in the capital.
Filipinos Embrace Vertical Living As mortgage rates hit an all-time low, more Filipinos can now afford to invest in their homes. homes. In Metro Manila, particularly, single young professionals, couples and small families increasingly prefer to live in medium- and high-rise condominiums. According to property broker CB Richard Ellis (CBRE), about 27,800 residential condominium units were sold in 2012 in Metro Manila. Developers are continuing to build more units, to reach
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41,077 units in 2013 and 47,408 units in 2014. It is estimated that almost 29,860 have already been pre-sold for 2013 and 28,028 units for 2014. Rick Santos, from CBRE, explains that Cancel the housing sector is experiencing democratisation Download And Print based on low interest rates and financing schemes. Residents are moving away from renting and are now buying their own homes. Modern Filipino households are increasingly living in condominiums. Thus, the demand for affordable condominium units keeps growing. The property broker estimates that some 300,000 households in Metro Manila c an now afford to buy units worth at least Ps1 million. According to a market study by property company Avida Land, young young employees aged 25-40 who are working in the business districts of Metro Manila are the new buyers of residential condominium units. They are busy and independent; they are very focused on their careers and spend more time at work and socialising. The most cited reason for choosing to live in a condominium is to avoid a long commute to work. ―Living in a single-detached single -detached home can be very expensive. Aside from the cost, most of these homes are located outside major cities, making travel time a big problem for most people,‖ according to property consultant KMC MAG Group. The other reasons are affordability, security, maintenance and amenities. In addition to the mass-market condominium segment, the luxury condominium market is also enjoying brisk sales. Just two months after it was launched, the luxury condominium complex ―The Milano Residences‖, with interiors designed by Ver sace sace Home, was 54% sold out. The buyers are wealthy Filipinos living in the country and abroad.
More Filipinos Can Afford To Travel for Leisure More Filipinos are now travelling within and outside the country on vacation. This trend is primarily driven by higher spending power among the country‘s middle class and the greater access to budget air fares. ―Domestic travel has surpassed everyone's expectations," according to Tourism Secretary Ramon Jimenez, Jr. A key development, as the industry is largely reliant on domestic visitors. The Philippine government has recently raised its domestic tourists target to 56.1 million by 2016, a 50% increase from the previous 2016 target of 35.5 mi llion. There were 40.7 million domestic travellers in 2012 and the number numb er is expected to increase to 44.1 million in 2013. 2013. ―We see reflection of good growth from the domestic travellers, better than last year or some two years ago. The domestic market has grown, because the supply h as grown,‖ according to Hans Hauri, the President of the Hotels, Resorts and R estaurants Association of Cebu. Cebu is one of the top island destinations for domestic holidaymakers. Other preferred destinations are the white sandy beaches of Boracay, Bohol, Davao and Palawan. Jay Aldeguer, whose company is in the travel business, agrees; he cites low air fares and packages, increased domestic air connectivity, and the presence of modern channels, such as Facebook, as the factors that have encouraged Filipinos, especially the young, to travel. Economist Bernardo Villegas reveals that Filipinos‘ spending power when travelling and shopping has increased. The availability of more low-cost flig hts has encouraged more Filipinos to travel. More Filipinos are taking low-cost flights to domestic destinations. The Philippines‘ largest low-cost low-cost carrier has remarked that low-cost carriers contributed approximately 96% of total domestic air travel growth between 2006 and 2011. Foreign tourist destinations have also begun to take notice of Filipinos‘ greater ability abil ity to travel. Japan recently relaxed its travel rules for Filipino tourists, replacing its single visa with a threeyear multiple visa for Filipino tourists. Japan expects 103,400 Filipino tourists in 2013, from 85,600 Filipino tourists in 2010. The United States is a top foreign destination for Filipino tourists; in 2013, the US expects the number of Filipino tou rists to reach 182,000, a 3% increase from the 176,000 recorded in 2012. In general, Asian destinations, led by Hong Kong and
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Singapore, are the most popular destinations among Filipino tourists. This is due to new air links and higher flight frequencies, the availability of budget airfares and the no-visa requirement for Filipino travellers. Cancel Download And Print
Fast Smartphone Adoption Makes Up for Low Broadband Penetration More Filipinos are using smartphones to access the Internet and social media. The surge in smartphone use is making up for the low (and slow) broadband penetration at home. The wide variety of very affordable units is driving the high demand for smartphones, with local mobile phone brands now offering units at below Ps4,000. "The growing preference for smartphones will increase the use of mobile internet which, in turn, will help fuel our revenue growth," remarked Globe Telecom President, Ernest L. Cu. Globe is the second largest mobile network provider in the country. "In the Philippines, what we're seeing is that subscribers are very data-savvy, especially those who are based in the urban areas," commented Elie Hanna, from Ericsson Philippines and Pacific Islands. A recent study conducted by the company confirmed the increasing smartphone use in the country: The Philippines leads other emerging markets in Southeast Asia with regard to smartphone and tablet penetration in urban areas. According to South Korean mobile phone brand Samsung, Filipinos are embracing smartphone functions that are not available on feature phones. Social media sites, particularly Facebook, are widely used, with a majority of users using mobile phones to access them. As of January 2013, the number of Facebook users in the country was 30 million. The users are young, with 40% aged 18-24, and 46% of the users are female. Filipino Facebook users are very active; they spend considerable amounts of ti me reading the news feed and posting statuses or updates. Mobile broadband penetration is now estimated at 20% of the population, and it is expected to grow further. The surge in the demand for handy Internet-enabled devices is making up for the slow and still poor broadband penetration across the country. According to the 2012 global broadband survey of the Broadband Commission of the United Nations, the Internet has remained inaccessible to most Filipinos. Only 11.4% of households had a broadband internet enabled computer in 2012, and about 30.5% of the population used the Internet.
Filipinos Are Becoming More Health Conscious Filipinos are increasingly interested in fitness and health. Influenced by the latest health trends from abroad and given their growing health awareness, more Filipinos, especially the young and the educated, are using organic and healthy products. They are also enrolling in fitness classes. The latest government study on the Filipino diet, covering the period from 1978 to 2008, reveals that Filipinos are eating more meat and chicken and fewer vegetables. Meat consumption per capita reached 27.7 kg in 2012, against 26.5 kg in 2007; vegetable consumption per capita reached 53.3 kg in 2012, down from 55.3 kg in 2007. The reduced vegetable consumption has been attributed to mass migration to urban centres, where most of the jobs and better schools are. The stress of urban living in the last three decades has given people less time to go to the market and cook food at home. However, fish consumption has increased t o 31.6 kg per capita in 2012, up from 28 .2 kg in 2007. Healthier food trends are gradually changing consumers‘ food choices. They now select frozen yoghurt, milk tea, fruit juices and bottled green tea drinks. More weekend markets are also opening in the metropolis, making it easier to find organic fruits and vegetables. Increasing awareness about chronic diseases is also making consumers switch to more nutritious foods. The government has announced a project (the Filipino plate) to gi ve Filipinos basic nutrition advice. This ‗plate‘ contains the amounts and kinds of foods that Filipinos should eat every day.
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The government counts on the food plate to help reduce the cases of non-communicable diseases (NCDs) due to smoking, unhealthy diets and sedentary lifestyles. It is estimated that NCDs kill some 800 Filipinos every day. The government has also pledged support to organic Cancel Download And Print farming, given the growing interest in healthier fruits and vegetables. In 2012, the Department of Agriculture began to allot Ps1 billion to promote organic agriculture in the country. Part of the shift to a healthier lifestyle is getting more exercise. More Filipinos run, as the weekly fun runs and marathons indicate. More fitness gyms are o pening; Fitness First and Gold‘s Gym are the most popular, but smaller gyms are fighting it out to get a piece of the burgeoning fitness market. In addition to the usual circuit training and weights at the gym, classes are now on offer, such as Zumba, Capoiera and other dance workouts. The number of yoga and Pilates studios has grown significantly as demand has increased. According to a news report, fitness centres have been sprouting like mushrooms in every major city in the last few years. Filipinos are becoming hooked on having a good physique.
CONSUMER SEGMENTATION
Babies and Infants The total number of babies and infants, aged 0 -2 years, was 6.68 million in 2012, and this number is projected to reach 6.94 million by 2015. The birth rate was 24.1 per thousand in 2012, and this is expected to decline to 23.5 per thousand in 2015, as fewer people are having children. Still, the country‘s population growth rate is higher than Thailand‘s (0.54%) and Indonesia‘s (1.03%). Yet, the impending implementation of Republic Act No. 10354, known as the Responsible Parenthood and Reproductive Health Act of 2012, is likely to help curb the country‘s birth rates further. The law was temporarily suspended, pending a Supreme Court decision on constitutionality concerns that were brought forth by the law‘s opponents who are connected to the Catholic Church. While the law does not set a limit to the number of children that a couple may have, it mandates access to contraceptives and raises awareness about family planning. These measures aim to enable couples, especial ly women, to make informed choices about their reproductive health, such as birth spacing and how to prevent unwanted pregnancies. The country had an infant mortality rate of 9.0 per 1,000 live births in 2012, down from 9.5 in 2007. To take care of their children during the first months up to the early years of infancy, some Filipinos hire nannies. It is also common to have a relative – usually, the grandparents or any close family member – take care of the child while the parents work. Another option is the day care centre. On one hand, fancy day care centres, like Gymboree and Kindermusik, offer yoga, music sessions, and other classes for babies and infants aged up to two years. On the other hand, other day care centres, usually located near barangay (village) halls, are government funded and manned by social welfare and community workers. These centres cater to the low-income households that can only afford a minimal fee, if any. Lately, there has been a stronger push for healthier baby feeding, a challenge for mothers who live below the poverty line. Nearly 30% of the population is poor. According to a 2011 study from the Philippine Food and Nutrition Research Institute, the exclusive breastfeeding rate among mothers stood at 46.7%. Almost 40% chose to give their babies formula milk and very poor mothers were giving evaporated milk with water, rice water or sugar with water. Through the Department of Science and Technology, the government has partnered with a pharmaceutical company, Long Live Pharma, to manufacture food packs for children aged six months to three years. The food packs contain rice and mongo (mung beans); they include ricemongo curls and rice-mongo instant blend.
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Some parents have discovered the benefits of making homemade baby food, an alternative to buying ready-made baby food. One mother has commented that baby foods are quite expensive and most are available in blended variantsCancel and flavours,Download which is notAnd idealPrint for a baby‘s first food. She chose to give her second child homemade food instead of store-bought baby foods when he started to eat solid food. Other parents choose to buy only organic food, but, according to one parent, the few products available are expensive. In addition, since there is no independent certification body for organically-grown fruits and vegetables, there is no assurance that a product is indeed organic. Formula milk still in high demand Despite a law to encourage mothers to breastfeed their babies from birth up to 36 months of age and asking formula milk manufacturers to include a disclaimer in their advertisements that says ―Breast milk is still best for babies u p to 2 years,‖ infant formula milk remains popular among Filipino parents. The Philippine Milk Code of 1986 was only strictly enforced in 2007. Between 2008 and 2011, the breastfeeding rate only increased to 46.7% from 35.9%, according to a study from the Philippine Food and Nutrition Research Institute. Milk products, which include infant formula milk, are top consumer items in the Philippines. An estimated 40% of Filipino parents feel that, by giving their children formula milk, they are getting something better [than breast milk]. Currently, a pending bill in Congress seeks to relax some of the provisions in the Milk Code. If passed, the total ban on advertisements for baby products will be reduced to cover infants aged 0 to 6 mon ths from the current 0 to 36 months. It will a lso allow donations of milk substitutes during disasters and emergencies, make mothers‘ lactation breaks unpaid breaks, and permit the distribution of product samples in health centres and practitioners‘ offices. Mothers warm up to natural baby products Organic, natural and eco-friendly food products are getting more popular. Consumers, mainly young city dwellers, are drawn to their many perceived benefits, not only for babies but also for the environment and their contribution to social entrepreneurship. New mums, in particular, are extra cautious and are constantly searching for baby care products that are safe. Home-grown brands, such as Human Heart Nature and Indigo Baby, carry a wide range of infant products that include baby shampoo, baby lotion, massage oils, and insect repellent spray.
Kids Kids, aged 3-8 years, made up 12.9 million of the Philippines‘ 97 million people in 20 12. With birth rates at 24.1 per thousand, the segment is projected to hit 13.2 million by 2015, or 13% of the total population. Previously, Filipino kids could enter Grade 1 without stepping into kindergarten, but the Enhanced Basic Education Act of 2013, or K-to-12 Programme, now establishes ―universal kindergarten‖. It requires kids to enrol in kindergarten before they can enter primary school or Grade 1 at age 6. Kindergarten is now free to five-year olds in public elementary schools. As a result, families with kids age 5 and below now have an alternative to expensive private preschools. Most of the parents who can afford to send their kids to private early education programmes are from the middle or upper classes. According to a 2009 government survey, 25% of families in the country live on a dollar a day or less. Primary education is free in the Philippines. In the 2 013 school year, there are about 1.75 million kindergarten pupils and 14 million elementary pupils. Rich and middle-class parents prefer not to send their kids to public schools as the public education system in the country does not have enough teachers, classrooms, school seats, textbooks and sanitation facilities.
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School uniforms are the rule in both private and public schools, but in many provincial p ublic schools, pupils are allowed to wear civilian clothes (due to pupils‘ lack of finances). Kids are normally brought to school by a parent or Cancel an assigned guardian and And fetched accordingly at Download Print dismissal time. School children either bring their own lunch (called ―baon‖) or eat at the school cafeteria. These establishments were recently reminded by the government to sell nutritious food instead of unhealthy soft drinks, chips and other processed foods. This comes on the heels of the rising incidence of obesity among kids in the Philippines. Kids prefer to eat spaghetti, hotdogs and hamburgers at fast-food chains when they go out with their parents or to the malls on weekends. A typical mother, especially if she works, resorts to a lunch box of rice and processed meat, such as ham, tried-and-tested kids‘ favourites, such as chicken fingers and meat balls and other easy dishes like fried egg with cheese. Some conscientious and well-informed mothers go for organic and healthier lunch choices. ―We do our chicken fingers and fish fillet from scratch because the packaged ones come with artificial flavours. There are a few extra steps but everyone is used to it. Sometimes we do adobo [a typical Filipino marinated meat dish], cooked the night before,‖ according to one mother. During their free time, most kids in the cities, particularly kids from the middle and upper classes, watch TV, play video games either with t heir parents or older siblings. They spend less time playing outdoor games with other children in the neighbourhood. At family gatherings and other occasions, kids can be found in one corner, not playing with each other, but playing with gadgets. ―Today, TV has become by default a babysitter. The Disney Channel, Nickelodeon and the Cartoon Network are the top channels for kids who have access to cable and satellite TV. In 2012, 38.6% and 0.4% of the country‘s 20.4 million households had cable TV and satellite TV, respectively. Other kids watch ―tagalized‖ (translated into the local language Tagalog) Japanese and American animation programmes on the free channels. Kids get hooked on downloadable games and gadgets Fewer kids are playing outdoor games. Instead, more kids are into electronic games, particularly downloadable games for touchscreen gadgets and smartphones, such as Despicable Me, Temple Run and Ben10. ―More and more children are getting into the habit of using electronic devices to play Angry Birds or watch YouTube videos as these gadgets become cheaper and more readily available,‖ according to a news report from gmanetwork.com. One ophthalmologist said that ―out of 10 kid patients I get aged 3 and above, about half of them have dry eyes.‖ Filipino children are ahead of their peers in more developed countries in Asia Pacific. The Cartoon Network‘s New Generations Survey 2012 reveals that ―They love using gadgets, whether borrowed, hand-me-down or their own. No wonder parents are considering buying computers, mobile phones and tablet computers in the next months‖. Another survey, by insurance firm Pru Life UK, found that 70% of Filipino children set a side part of their pocket money to buy the latest gadgets. Fast-food birthday parties are preferred More working parents choose to celebrate their kids‘ birthdays at fast-food chains. This is widely seen as convenient, cheap and preferred by kids. Kids‘ favourite party places are McDonald's, Jollibee, Shakey‘s and Pizza Hut. As fast food chains expand to the provinces, some rural kids are starting to celebrate their birthdays at their favourite outlets. ―The main advantage of choosing this option is that it is readily accepted by the birthday celebrant and the young visitors as well. Partly due to active marketing efforts of fast-food chains that offer this service, children relish the familiarity with the food, the activities, and the
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token mascot appearance. This is the usual preferred option for children aged 1 to 7,‖ said one mother.
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Tweenagers, aged 9-12 made up 8.24 million of the country‘s population in 2012. The segment has seen steady growth since 2000.Their number is projected to reach 8.42 million by 2015, as more kids grow older and enter the stage when they are neither a young child nor a grown up. These consumers are still too young to wear adult styles, but old enough to know how they want to look. They aspire to be like their Hollywood celebrity idols and young stars, like Selena Gomez or Taylor Swift, and in the Philippines, Kathryn Bernardo or Julia Montes. Jessica Sanchez, an American Idol finalist who is half Filipina, is also popular among girls. Many tween girls are also fans of British -Irish boy band One Direction and local act Chicsers. They make up the huge fan base of young heartthrob Daniel Padilla an d collect his CDs, attend his concerts, or support his movies or TV shows. Tweens are easily influenced and many Filipino parents find ways to make time and be involved in all aspects of their growing son‘s or daughter‘s life. Still, some are brought up by their yaya (nanny) or by close relatives, such as grandparents or aunts. Like younger kids, most tweens are brought to school by a parent or guardian, or take a designated vehicle. Walking or cycling to school is not widely e ncouraged at this age, especially given the perceived lack of security on Philippine roads. School supplies, such as notebooks and ball pens, are becoming obsolete in this age group because schools, especially private ones, have started to introduce tablets, which replace text books and even the need to take down notes. It is common to have one‘s own mobile phone at this age to keep in touch with friends and classmates. Tweens play games like Candy Crush and Temple Run and compare scores. They share photos on social networking sites, where they also ―follow‖ or interact with their ―idols.‖ A survey conducted by insurance firm Pru Life UK has found that, in general, children up to the age of 12 put aside part of their allowance to buy the latest gadgets, clothes, and toys. The respondents, from Metro Manila and Cebu, on average get Ps157.60 in pocket money per week. The survey reveals that 67% saves to buy things they want, 50% spends and saves about the same amount, 30% spends most of their pocket money, but 24% asks their parents or grandparents to purchase items for them. From textbooks to iPads and tablets In 2010, St. Paul College in Metro Manila acquired tablets to replace students‘ textbooks. The school tested and developed apps for research and other tools that students would find useful. ―If the tablet lasts for about 2-3 years, it might turn out cheaper than the actual books,‖ said one technology observer. St. Scholastica‘s Academy and La Salle Greenhills have since followed suit, and more schools are making the switch from traditional textbooks to digital ones. Even schools in the provinces are changing their ways. The Foundation University in Dumaguete, Negros Oriental, initially implemented an iPad pilot programme for high-school sophomores in 2011. After getting good feedback, the school expanded the programme to cover Grades 4 to 6 —students aged 10-12— and all high-school levels. ―I noticed that my son is eager to learn and his grades have improved,‖ said one parent. ―Tablets, being the latest ‗it‘ device, are seen as having great potential for teaching. After all, students seem to take to it very well... students take to everything technology-related very well,‖ added another. Growing fashion sense It is common for a female tweenager to hear that she is ―no longer a girl, but not yet a woman.‖ This often causes confusion, and, for growing girls, dressing becomes a challenge.
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These days, tweenagers and their parents are finding themselves with more choices. Justice, an American brand that caters to trendy tweens, recently opened in one of the country‘s highend department stores. Aside from clothes, it offers accessories andAnd personal Cancel Download Printcare products aimed at girls aged 7-14, making it a one-stop shop for tweenagers. Home-grown brand Kids of Bayo is targeted at girls and boys aged 2-18. ―Kids of Bayo has a range of clothes that are cute and stylish yet age-appropriate for those adorable Rugrats and tweens in your life,‖ said one observer.
Teens Filipino teens, aged 13-18, amounted to around 10 million or about 10% of the country‘s estimated 97 million people in 2012. This age group has grown steadily over the years and is expected to hit 10.2 million by 2015. They are mostl y students, ranging from high-school freshmen (13-year olds) to college sophomores (18-year olds). The government estimates that four million teens and young people aged 19-30 are not in school. Compared to earlier generations, teens today are more exposed to technology and becoming tech-savvy at an early age. The Philippines, as a whole, has over 90 million mobile phone subscribers and Internet penetration stands at 32% of the population. The early adopters of technology are usually young people. Middle-class and wealthy students are usually driven to school in private vehicles, while others take a rented tricycle or ―school bus,‖ often a van converted to carry students to and from the school. In some areas, motorcycles have become a common means of transportation and those old enough to have a licence (at least 16 years old) ride the motorcycles themselves. Others commute via public transport or walk, if the school is near their homes or dormitories. Teenagers have plenty of food choices, but efforts have been made to promote nutritious foods to this group. The Department of Education (DepEd), for instance, introduced a policy against the sale of unhealthy foods and beverages, including soft drinks, chips and other processed foods, in 2007. However, this is not a guarantee that students are eating better since it has not been easy getting school canteens to cooperate, especially those outside DepEd‘s jurisdiction. In addition, teenagers are exposed to a variety of fast-food chains once they go out of the school campus. Among teenagers, quick-service restaurants, like McDonald‘s and Jollibee, are the most popular. They are chosen for their casual ambience and food offerings that fit in students‘ limited budgets. For teenagers with a bigger allowance, stores that serve frozen yoghurt, milk tea, or specialty coffee are also quite popular, especially owing to the free Wi-Fi connections that they usually offer. Basketball remains the most popular sport in the Philippines, but running, football, and volleyball also have quite a following. While physical education is part of the curriculum from high school to college, not all schools are equipped with facilities or have a good sports programme to support athletes. Without their own source of income, Filipino teenagers‘ purchasing activities, quite understandably, are still subject to their parents‘ approval. This does not mean, however, that teens do not buy more expensive items, such as smartphones and tablets, using their pooled savings and cash gifts. These gadgets are now commonly used by teens to stay connected to Facebook, Twitter, Instagram, and other social networking sites. Teens ―like and share‖ Social media has a huge influence on teenagers‘ buying habits. Just seeing which brand pages a friend ―liked‖ —which Facebook displays on friends‘ newsfeeds — raises awareness, and, ultimately, affects the decision to buy certain products and services liked by people in an individual‘s social network. With teens‘ penchant for posting their whereabouts, through
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Facebook‘s check-in app and creating Twitter hashtags of what they are having at the moment (such as #starbucks #kfc), they are becoming unofficial endorsers of their favourite brands. Teens look up to ―Glocal‖ role models
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―Glocal,‖ (combination of global and local) grabs teenagers‘ attention. This mostly involves well-known celebrities coming to the Philippines and endorsing local brands. Teenage consumers willingly yield to this strategy, especially if it means an opportunity to see their music or TV icons in the flesh. For instance, Penshoppe has turned to Ian Somerhalder and Nina Dobrev, stars of the popular TV series Vampire Diaries, to endorse its clothing. British-Irish boy band One Direction and Thai heartthrob Mario Maurer were also recruited to tap into their huge teenage girl fan base in the Philippines. Similarly, the clothing brand Bench had half -Filipino singers Bruno Mars and Jessica Sanchez, Maroon 5 vocalist Adam Levine, and South Korean heartthrob Lee Min Ho come to the Philippines for meet-and-greets and mall shows, dressed in the requisite clothing brands.
Young Adults The Philippines has one of the youngest populations in Southeast Asia, with a median age of 22.9 years in 2013. In 2012, Filipinos aged 18-29, collectively called young adults, amounted to around 21.5 million or about 22% of the country‘s population. This segment has grown steadily over the past five years and is expected to hit 22.5 million by 2015. This means that the country has a growing young labour force. Many adults who live in cities work in the call centre and business process outsourcing (BPO) industry. They get a relatively higher salary and can afford to splurge on food, clothes, the latest gadgets, travel and various forms of entertainment. The rise of BPO workforces in the metros has prompted fast-food chains to offer 24-hour service and bars to introduce early morning happy hours. Young adults still have a high regard for education, partly as a result of their family upbringing. Their parents have shown them the importance of education, which is perceived as a way out of poverty and, in some cases, a way out of the country for greener pastures. Seafaring, nursing and engineering courses are popular as they are perceived as leading to jobs abroad. In rural areas, fewer lucrative job opportunities are available for young Filipino graduates. They often have to move to cities to find work. Foreign blue-collar and domestic jobs appeal to young people, even to college-degree holders. Young adults, especially those who have a steady income, prefer foreign brands, led by US brands, for their clothes and accessories. This is due to the easy access to American television shows and Hollywood films. Young and trendy foreign clothing brands, such as Forever 21, Uniqlo and Muji, Miss Selfridge, and Cotton On (brands from the US, Japan, the UK and Australia, respectively) have appeared in malls in metro areas. Young adults have also warmed to Korean fashion as a result of the increasing popularity of Korean popular music K-Pop and the dubbed versions of ―Koreanovelas‖ or Korean television dramas. Most young educated city dwellers are marrying later and having fewer children. Couples with either no children or raising smaller families are spending most of their incomes on acquiring and saving for top urban living must-haves, such as their own condominium units or apartments and cars. This is not yet the case for young adults belonging to lower-income classes and those living in r ural areas. Most of these young adults are either continuing to live in their parents‘ house or supporting their families. Fewer young Filipinos are getting married While having a family is still widely perceived as important, fewer young Filipinos are getting married in the Catholic Church. In a news report from abs-cbnnews.com, the National Statistical
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Coordination Board (NSCB) is reported to have found that, during the 2001-2010 period, 43.5% of married couples preferred civil weddings, against 35% who went for more expensive church weddings. Filipino young couples have become opting to invest Cancelmore practical, Download And Printtheir hardearned money in their future instead of spending it on lavish one-day wedding ceremonies. The savings from either having less expensive ci vil weddings or from delaying marriage are normally spent on buying a home, personal products and recreation. No sign that social media use will slow down According to a recent article on the media blog wearesocial.net, young adults in the Philippines have embraced social networking in a big way and there is no sign that the trend will slow down. ―The Philippines has long been renowned for its hig hly sociable people, but there‘s something magical about the way Filipinos have embraced social media‖, said the blog. Young adults tend to connect via social networking si tes; the average web user in the Philippines is just aged 23 while almost 60% of social media users are below the age of 24. Young adults‘ food choices, appearance and hobbies have been influenced by the social media activities of their peers. They are finding themselves travelling more and spending more on non-essential goods and services, such as gadgets, pampering and clothes. As a result, Facebook and Twitter are now widely used by companies who tie up with local movie and music icons and tap into their networks of fans and Twitter followers. Credit card ownership among young urban dwellers is high. Compared to their parents, they are not afraid to buy clothes, accessories and gadgets online using their credit cards.
Middle Youth Filipinos aged 30-44 totalled 19.06 million in 2012; their number is projected to reach 20.49 million by 2015. Lately, fewer young Filipinos, including some in middle youth, are getting married. The National Statistics Office reveals a 1.3% decline in marriages between 2010 and 2011. In 2012, the marriage rate was 5.6 per thousand, but it is expected to decline to 5.5 per thousand by 2015. Widespread poverty and the rising costs of church weddings are discouraging couples from tying the knot. ―Family units are saddled with severe problems of providing for their children and making ends meet, so unfortunately marriage is the farthest [thing] from their minds, much less divorce,‖ said one politician in a news report. Most people in middle youth are employed. According to the latest survey from the Bureau of Labor and Employment Statistics, covering the period from April 2012 to April 2013, the 35-44 age group had a participation rate of 78.4%. The same survey notes that Filipino women in their 40s are very active in the labour force with a participation rate of 62.4%. Middle youth from middle- and upper-income groups are having fewer children as more women are working and are ambitious, especially those with college degrees. ―[The participation of] c ollege educated women started to peak right after they obtained their degree, which is normally around ages 20 to 24, dipped slightly at ages 30 to 34 and plateaued thereafter until their 60s,‖ according to the government agency. The agency notes that there is a ―small dent‖ in the participation rates of educated women when they enter married life. ―Since they also have fewer children and are capable to hire someone to take care of their children, th eir participation in the labour force is less interrupted, as evidenced by their consistently high [participation] throughout the life cycl e,‖ it added. Indeed, the educated middle youth who have been successful in their careers now hold at least middle-management positions. For instance, in the call centre and BPO industries, the fresh college graduates of ten years ago who made up the first batch of employees of the rapidly growing industries are now the supervisors. Other booming industries that hire them are the construction, IT and utilities industries. The strong economy is also encouraging people in middle youth to start their own business. It is now made easier by the accessibility of franchise businesses, such as milk tea, dim sum
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stores, and other food cart ventures. In addition, bank loans are avai lable for small businesses and start-ups. Telecommunication companies now offer packages for small and medium enterprise owners. Cancel Download And Print Most of the country‘s middle youth are technology- and social media-savvy. Single and working professionals, with their higher disposable incomes, can splurge on food, movies and gadgets. The married middle youth, on the other hand, are prioritising the education of their young children and investing in family cars and houses. The rise of thirty-something single women More successful and educated Filipino women in their 30s are not married and tend to be single. Most women earn almost the same or more than their male c ounterparts, and they feel more empowered and independent. Nowadays, Filipino women want to buy their own house and car; they want to start saving up for retirement without relying on their family or future spouse. ―I figured out late in life what I wanted to do, and I was in a relationship at the time. However, having had most of my decisions made for me by my parents when I was y ounger, when I finally realised what I wanted to do, I wasn't going to let anything get in my way. So I was even willing to sacrifice my relationship because I needed to accomplish my dreams or I knew I'd regret it for the rest of my life,‖ shared one woman. Even women with children are also becoming independent. ―My boyfriend‘s only ‗investment‘ is his small agricultural business. We still need to work on building our investment portfolio, which should ideally include stock investments, mutual funds, insurance, and government bonds,‖ explained one woman. ―I‘m not financially dependent on my boyfriend. He sends money for our son‘s needs, but I decided that we should work on our finances individually for now...both of us should be financially independent,‖ she noted. Metrosexual men on the rise Increasingly, Filipino men want to look good a nd have good hygiene. Previously, men bought and used beauty products meant for their mums, sisters or wives. A ne ws report reveals that Filipino males have long been known as ―macho,‖ preferring to go to barber shops rather than salons for men and women to highlight their masculinity. In the Internet and Facebook age, ―macho‖ has given way to ―metrosexual,‖ with aesthetic beauty clinics catering to men sprouting all over urban areas. One male blogger even reviewed a whole range of personal care products (lip balm, hair gel, facial wash, toner, moisturiser, and deodorant) for men, something unheard of, at least openly, until recently. Indeed, with a whole gamut of personal care products specially formulated for oilier skin and larger pores, men no longer have a reason not to follow the basic rule of facial care: cleanse, tone, moisturise. Belo Medical Group created Belo Men after s eeing that 30% of its patients are men who want to take better care of their skin.
Mid-lifers Filipinos aged 45-59, the so-called mid-lifers, accounted for 12.16 million of the Philippines‘ 97 million people in 2012. Their number is expected to climb to 13.24 million in 2015, nearly double their size in 2000 at 7.79 million. Mid-lifers make up a large part of the working population. Many have reached supervisory levels, and some are just about to retire. The government statistics agency reports that a growing proportion of the Philippine population is in th e working ages and the elderly population is increasing slightly. Most mid-lifers already know what they want and lead productive lives. Their children are likely to be setting out on their own, so men and women in their mid-forties up to their late-fifties have more time for themselves to pursue their personal interests. Health and delaying ageing have become top concerns. Healthier food choices, vitamins and supplements, maintenance medicine, and anti-ageing creams are regulars on shopping lists.
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Sen Sanchez, a 45 year-old mother and jewellery designer, is one of those who believe that the older a woman gets, the more she should be conscious of her food intake. ―If I have lunch out with friends, I still stick to raw, organic andCancel fresh salad or a bowl of soup I would also order a Download AndorPrint fish dish that‘s been steamed with just fresh herbs and olive oil. For dinner, I only have vegetable soup or just a salad,‖ explains Sanchez, who also works as a yoga instructor. Jacqe Yuengtian, a brand manager for a cosmetics brand, comments that most women in their 40s feel that they need an anti-ageing cream, but for women u nder 40, anti-ageing products are seen as an unnecessary luxury. Life after retirement, at least in the Philippines, does not always mean a life of leisure and relaxation. Having a close-knit family culture, most Filipinos s till continue to work after retirement to support their families. Life insurer AXA Philippines, in its global ann ual research AXA Retirement Scope, shows that 38% of Filipinos still have a job after retirement, higher than the global average of 17%. About 83% of Filipino workers intend to have a job after retiring, higher than the global average of 54%, and the highest among the 26 countries surveyed. This could mean starting a business using part of one‘s retirement money or working for the p rivate sector if coming from the government sector. Another insurance firm, Sunlife, surveyed 1,100 people up to the age of 55 and found that 51% said they wanted to start a business within the next two years. More than 30% of respondents also said they wanted to buy life and health insurance, proof of a growing trend that Filipino consumers now consider insurance as essential. Filipinos are also becoming more discerning, seeking as much information about life insurance as possible before a purchase, according to the report. Traditional with money There may be a growing interest in insurance, but most Filipinos remain traditional when handling money. Another survey from the same insurance company s hows that many lack knowledge of basic financial concepts and how to properly prepare for their future needs, even if they claim to be ―experts‖ in managing their finances. The survey reveals that Filipinos still have a huge tendency to depend on bank deposits and ignore or are unaware of other options in the market. Asked to define ―financial security,‖ respondents‘ top answer was: having enough bank savings. ―One‘s money is intact in a bank account but with so little growth, or even negative real gr owth, there is doubt if it can ensure one‘s financial security,‖ the insurer warned. Many Filipinos do not have money for their retirement years. An observer explains that, i f they fail to change their lifestyle and postpone saving and investing for their retirement, sad possibilities can happen when they grow old. For instance, they may have to continue working after retirement age or sell assets like their house when they get really sick. Forever young mindset Mid-lifers are still working and most, if not all, are at the peak of their careers and want to look good. Aware of the inevitable effects of ageing, mid-lifers eat more fruits and vegetables, get a health club membership, or turn to cosmetics with anti-ageing benefits. Wealthier mid-lifers turn to hormone replacement therapy and dietary supplements, which are now offered by many clinics and hospitals in the metro. Procedures also include Thermage, a non-invasive treatment that delivers tighter skin and healthier collagen, and Ultherapy, a non -surgical cosmetic procedure to get skin reminiscent of an earlier time. People on a tighter budget can buy similar treatments through group-buying websites, which offer anti-ageing procedures, like cryotherapy, with stem cell treatment, at almost 70% off, and anti-wrinkle treatments with a more than 80% discount. Global beauty company Avon has recently launched a cream in the Philippines ―touted to wipe out the need for cosmetic surgery,‖ as noted in the blog thebeautyjunkee.com. Other products are popular too, including international brands, such as Nivea and Olay, and home -grown brands, such as Celeteque.
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Late-lifers
Print Late-lifers, Filipinos aged 60 and above,Cancel amounted toDownload 6.85 million And in 2012; their number is expected to rise to 7.85 million by 2015. In the Philippines, the common retirement age is 60 and mandatory retirement applies at 65. Former government employees receive a pension from the Government Service Insurance System or GSIS. Others receive a pension from the Social Security System (SSS) (for the self or privately-employed), or the Department of Social Welfare and Development (DSWD), which provides cash assistance to indigent senior citizens. As of 2012, GSIS had 220,000 pensioners; SSS had around 1.6 million; while DSWD was providing assistance to more than 140,000 indigent senior citizens. In early 2013, the GSIS raised the basic minimum monthly pension to Ps5,000 to be more responsive to the needs of old-age and disabled pensioners amid rising prices of basic commodities. Nationwide, more measures are in place to provide comfort and assistance to the Filipino elderly. The elderly are given priority in queu es and public transport. Republic Act 7876, or the Expanded Senior Citizens Act of 2010, provides more benefits to senior citizens, including discounts on transport fees, food, cinemas, and medicines. While most late-lifers are retired, many are still active and perform significant roles in the community. Senior citizen groups organise events and fundraising activities. The Federation of Senior Citizens‘ Associations of the Philippines is pushing for legislation to have their sector represented in local government. ―Our dream is...to make the remaining years of our lives fruitful and have a legacy for the younger generations. We dream to be represented in our local government units to lead the implementation of senior citizens‘ laws and projects, especially on medical and health facilities,‖ the report said. Most Filipino elderly people continue to play a significant role at home. It is common for grandparents living with their children to help take care of the grandchildren while the parents are at work. With an estimated 10 million overseas Filipino workers (OFWs), grandparents play an important role in raising the children that these OFWs leave behind. In grandparents‘ twilight years, however, it is their chi ldren‘s turn to take care of them. Children are expected to take care of their parents in old age; putting a parent in a nursing home is still unacceptable in Philippine society. Extended families are useful because, when the child has to work, there is always a c ousin, a niece or nephew who can look after the elderly at home. On the other hand, wealthier families often hire a full-time caregiver to stay with the elderly if the children or grandchildren are too busy with work. There are also institutions, like San Lorenzo Ruiz Home for the Elderly and the Golden Acres Home for the Aged, but these are usually for senior citizens who are abandoned, neglected and rely on government support. Warming up to technology Senior citizens are more internet aware than in the past. Telecommunications company Bayantel introduced ―Lola Techie,‖ an Internet-savvy grandmother who is on Facebook and Youtube. A humorous advert shows that it is so easy to connect to the Internet that even grandmothers could do it. Statistics suggest that once seniors go online, they can be just as enthusiastic as younger users. Because of these wired seniors, there has been a sharp growth in key Internet activities, such as looking for health information, e-shopping, and online banking. ―ICT can open up opportunities to enable us to use our collective elderly wisdom to contribute once more to society. We can advocate for reforms through social media, blogging and e-mail campaigns,‖ said Lola Techie, who is an advocate of senior citizen empowerment. In 2013, the government‘s Information and Communication Technology Office has used Lola Techie to give talks to senior citizens and promote basic computer literacy courses specifically designed for
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senior citizens. The programme focuses on communication tools, such as social media (Facebook, Twitter, and Skype). Elderly immigrants return home
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The majority of Filipino immigrants live in the US, and many retire every year. A number of these retirees have returned to the Philippines to be with their families and save on medical expenses. One group of Filipino immigrants is even lobbying to be allowed to take with them their welfare assistance and entitlement benefits. ―But whether or not Medicare will b e accessible to us in the Philippines, there is no other choice but to go back home because we cannot afford caregiver services or retirement home expense in the States,‖ according to Esther Villanueva, 87, a US-based retiree. Fe Bacalzo, 87, already made the move in 2004. ―I didn‘t want to grow old there. It‘s lonely for old people like me. My kids ar e always busy working. There‘s no time to talk ... because of work. After work they have to cook. It‘s sad,‖ she said. Living together with her daughter‘s family in Metro Manila, she employs two helpers. Table 1
Consumer Segmentation and Population Data 2000, 2005, 2010, 2011, 2012, 2015
Babies/infants (aged 02) ('000) Kids (aged 3-8) ('000) Tweens (aged 9-12) ('000) Teens (aged 13-17) ('000) Young adults (aged 1829) ('000) Middle youth (aged 3044) ('000) Mid-lifers (aged 45-59) ('000) Later-lifers (aged 60+) ('000) Population: National estimates at January 1st ('000) - Population aged 0-14: January 1st ('000) - Population aged 1564: January 1st ('000) - Population aged 65+: January 1st ('000) - Male population: January 1st ('000) - Female population: January 1st ('000) - Urban population ('000) - Rural population ('000) Birth rates (per '000 population) Death rates (per '000 population) Marriage rates (per '000 population) Source:
2000
2005
2010
2011
2012
2015
6,071
6,251
6,672
6,674
6,687
6,945
11,843 7,443 8,518 16,552
12,200 7,933 9,404 18,621
12,599 8,159 9,970 20,705
12,750 8,199 10,039 21,110
12,902 8,243 10,093 21,498
13,219 8,424 10,215 22,507
14,059
15,968
18,133
18,595
19,060
20,496
7,793
9,514
11,421
11,797
12,165
13,238
4,225
5,137
6,264
6,546
6,848
7,851
76,504
85,029
93,923
95,709
97,495
102,896
28,879
30,237
31,460
31,674
31,896
32,700
44,947
51,509
58,438
59,850
61,246
65,260
2,677
3,282
4,025
4,186
4,353
4,935
38,524
42,802
47,255
48,156
49,059
51,794
37,980
42,227
46,668
47,553
48,436
51,102
44,792 31,712 29.1
53,321 31,707 25.9
62,344 31,580 24.5
64,174 31,535 24.3
66,009 31,486 24.1
71,569 31,327 23.5
5.3
4.9
4.7
4.7
4.7
4.7
7.5
6.1
5.7
5.6
5.6
5.5
National statistics, Euromonitor International
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Source:
Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020 Cancel Download And Print
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HOUSING AND HOUSEHOLDS
Home Ownership There were 20.4 million households in the Philippines in 2012. This is considered inadequate in a country with a population of 97.5 million. Some 14 million of these households were in urban areas. The 2012 numbers show only slight improvements from the 15.2 million households, including nine million households in urban areas, in 2000. About 15.15 million homeowners were mortgage free in 2012; about 2.71 million homeowners had mortgages. The number of people who were renting was 1.4 million. The most common type of housing in the country is the house, followed by detached, semi-detached and terraced, and apartment. In crowded Metro Manila, where over 12 million people live, housing remains a problem. According to the Subdivision and Housing Developers Association, the current housing backlog in the country is at 3.9 million, including some 832,046 families that cannot afford a housing unit. These families come from the low-income segment. If not addressed, through government subsidy among other means, the housing backlog is expected to hit 6.5 million families by 2030. In 2013, the constant flooding and the worsening traffic in Metro Manila have forced the government to relocate 9,440 families living in makeshift shanties built along major waterways. Most of the informal settlers are migrants from rural areas. People who opt to relocate outside of Metro Manila will get Ps18,000 in financial assistance, while those who rent rooms in the city will be given rental subsidies. Relocating informal settlers is a major challenge as they usually go back to the city where the jobs are. The middle class, families of overseas Filipino workers and Filipino young professionals are the only ones who can afford the new housing units that are being built in the cities, particularly in Metro Manila. It has become easier for them to invest in new housing units as interest rates on loans have dropped. Monthly housing loan amortisation through the state -owned housing fund Pag-IBIG was lowered to 7% from the previous 10%. It has also lowered its interest rates for the low-income group from 6% to 4.5%. Condominium units, especially t he more affordable mid-market condominiums, are the most wanted. Previously, condominium projects meant bigger sizes and higher prices. First-home buyers are now ready to switch from owning a house
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or lot in the suburbs in exchange for short travel from home to work and other necessities, according to a property consultant. Mid-market condominium units are priced between Ps1.5 million and Ps3 million. Condominium units that are strategically located the central business Cancel Download AndinPrint districts cost from Ps3 million to Ps10 million. Lately, foreigners, mostly from the US, Hong Kong and Singapore, have started to buy condominium units as investments in the Philippines. A recent blast at a posh condominium in Bonifacio Global City has prompted condominium buyers to be more cautious about the safety of the buildings. The incident is seen to have a short-term effect on condominium sales and prices. One property developer said that the blast, caused by a gas leak which killed three people, has resulted in buyers making more inquiries about the safety features of high-rise buildings. People working in the central business districts of Makati, Taguig and Ortigas in Metro Manila are compelled to invest in condominium projects near their workplaces due to the lack of an efficient public transport system and the worsening traffic congestion. Pre-owned properties offer an alternative to vertical living For Filipinos who do not want vertical living, the other affordable alternative is buying preowned properties. Most of these properties are in gated areas and are a top choice for city dwellers with large families. ―Today, more and more homes are being enclosed in gated subdivisions and villages where community living is more independent and contained,‖ according to one Manila resident. Aside from buying from former owners, some of the preowned properties are foreclosed properties. Mortgage servicing company BFS said in a news report that, over the past five years, it has sold over 4,000 pre-owned properties nationwide, with the bulk located in Laguna, Cavite, Bulacan, Rizal, Caloocan City, and Muntinlupa City. These areas are on the outskirts and outside of Metro Manila, with developing communities. They have access to good roads, electricity, and water s upply. BFS properties are in rapidlydeveloping areas, so the value of the properties may very well continue to increase over time, according to a BFS official. Condominiums appeal to growing city workers Start-up families and young executives have embraced condominium living. The buildings are close to their workplaces. Almost all buildings have security guards and maintenance personnel. Condominium living is particularly popular among single workers and couples who do not have children. Couples with children often employ house helpers and prefer living in apartments or townhouses. The monthly condominium charges usually cover the security systems, waste management, electricity in common areas, service elevators, guards, janitors, plumbers and electricians. ―The neighbourhood is more secured in a condominium because of the security guards and CCTV camera,‖ said one owner.
Household Profiles In 2012, almost half the 20.4 million households in the Philippines had at least five occupants. By 2015, more people are expected to live alone: there will be 973,000 households with single occupants, against 902,000 single occupants in 2012, as young Filipinos are increasingly getting married later. A typical Filipino household has two rooms. There were about seven million households with two rooms in 2012, followed b y three-room households at 4.88 million and single-room households at 3.95 million. The makeup is not expected to change in the near future. About 16.98 million households had a male as the head in 2012; an estimated 3.42 million households were run by a woman. By 2015, about 17.9 million households will be headed by men and 3.8 million will be run by women. Households with couples without children are e xpected to increase to 1.89 million in 2015 from 1.75 million in 2012. Single-parent family households will increase to 1.9 million in 2015
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from 1.77 million in 2012. Households with couples with children will also experience growth: from 12.97 million in 2012 to 13.76 million by 2015. Each year, thousands of new graduatesCancel who had moved from the And provinces Download Printto study decide to stay in the country‘s capital and in key cities to work. Some unemploye d people in the provinces also move to Metro Manila and to cities to find work. It is common for them to stay with relatives or for young professionals to share and rent an apartment or condominium unit. It is also common for newly-wed couples and young families who cannot afford to buy a new house to continue to live with their parents or for elderly parents to move in with their married children. Domestic helpers are a fixture in Filipino households; they include maids, cooks, nannies, drivers and all-around helpers. Most live with their employers. According to a 2010 government survey, over 1.8 million households employed domestic helpers. Estimates of the number of domestic workers range from 600,000 to 2.5 million. A new law has been implemented to provide better working conditions for domestic helpers. It sets a minimum wage for helpers and requires employers to make full social welfare contributions. Most employers are against the law. Despite the complaints, most people, especially those with children, will continue to hire helpers. Manila‘s young professionals move out of their parents‘ homes The worsening traffic conditions in Metro Manila and the thirst for independence among the city‘s young and moneyed professionals are two reasons why more young people are moving out of their parents‘ homes. Young professionals either rent or start investing in condominium units or in apartments near their workplaces. According to a philstar.com columnist, unmarried twentysomethings leaving the nest was rare until recently. Traditionally, they left only to move into a new home with their spouse. ―Independence is very important to me. I like the idea of being able to live on my own, especially in the Philippines where it‘s not common to leave the family home befor e 30,‖ said 27 year -old creative advertising professional Tami Acena when asked why she moved out. Single-parents lobby for more support The number of single-parent households is growing. One reason is the increase in the number of mothers or fathers moving abroad to work. In addition, young Filipinos are becoming more emancipated. Previously, if a girl became pregnant, she was forced by the family to marry the father of the child. Some hope that the Solo Parents Welfare Act of 2000 will be amended to make the law more accessible to solo parents and to lessen their financial burden. One provision seeks to reduce the waiting time for single parents to get benefits, from one year to six months. ―Though my parents still help out, it can be difficult. I do not ask for child support from my son's father. Most of the time, I just go without buying things for myself. Better for me to go without than for the baby to go without,‖ according to one single mother.
Running Costs The average household expenditure on maintenance and repair of dwellings was Ps1,313 in 2012, while the average expenditure on water and miscellaneous domestic services was Ps1,853. Electricity and gas expenses represent the largest share of household running costs. Electricity costs are higher in the country than in some of its Southeast Asian neighbours. Being a tropical country, electric fans and air-conditioning are a must, especially during the long warm and humid summer months. The average electricity, gas and other fuel cost per household was Ps15,352.8 in 2012. The most common appliances in Filipino households are television sets, electric fans, mobile phones and land lines, VCD/DVD players, gas stoves and refrigerators.
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Consumers are still afraid to drink tap water
Despite an assurance from the Health Department that the tap water in Metro Manila is safe for drinking, most households still spend on purified drinking water. Providing purified drinking Cancel Download And Print water is a major task; the number of water refilling stations in the country is estimated at over 3,000. ―We drink bottled water at home. We buy 5-gallon bottles, three at a time, and use an electric water dispenser with hot and cold functions,‖ sa id one Metro Manila resident. ―Now we still get drinking water from the tap, but we u se a simple tabletop water purifier just to be sure‖. Table 2
Housing and Households Data 2000, 2005, 2010, 2011, 2012, 2015
Total number of households ('000) - Urban ('000) - Rural ('000) Households by tenure - Home owner ('000) -- Home owner without mortgage ('000) -- Home owner with mortgage ('000) - Rented ('000) Households by type of dwelling - House ('000) -- Detached ('000) -- Semi-detached and terraced ('000) - Apartment ('000) - Other ('000) Households by number of persons - 1 ('000) - 2 ('000) - 3 ('000) - 4 ('000) - 5 ('000) - 6+ ('000) Households by number of rooms - 1 ('000) - 2 ('000) - 3 ('000) - 4 ('000) - 5+ ('000) Households by sex of head of household - Male ('000) - Female ('000) Households by type - Single person ('000) - Couple without children ('000) - Couple with children ('000) - Single-parent family ('000) - Other ('000)
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2000
2005
2010
2011
2012
2015
15,272
17,322
19,508
19,954
20,401
21,755
8,990 6,282
10,913 6,410
13,000 6,509
13,430 6,524
13,863 6,538
15,183 6,572
13,025 12,440
15,213 13,887
17,098 14,806
17,482 14,970
17,869 15,153
19,055 15,854
585
1,326
2,292
2,512
2,716
3,201
1,227
1,324
1,409
1,422
1,433
1,451
8,330 6,403 1,928
9,169 7,064 2,105
10,020 7,720 2,300
10,187 7,849 2,339
10,353 7,976 2,377
10,843 8,353 2,489
6,865 76
8,045 109
9,360 128
9,637 130
9,917 131
10,784 128
609 1,423 2,190 2,767 2,858 5,424
733 1,685 2,574 3,221 3,280 5,828
855 1,947 2,960 3,683 3,719 6,344
879 1,999 3,037 3,776 3,808 6,455
902 2,051 3,113 3,868 3,896 6,569
973 2,205 3,343 4,146 4,164 6,924
2,977 5,363 3,608 1,691 1,632
3,369 6,039 4,118 1,964 1,832
3,788 6,762 4,661 2,251 2,047
3,873 6,910 4,771 2,310 2,091
3,959 7,058 4,881 2,368 2,135
4,218 7,508 5,216 2,543 2,269
13,204 2,067
14,757 2,565
16,350 3,158
16,666 3,287
16,980 3,421
17,910 3,845
609 1,083
733 1,380
855 1,647
879 1,698
902 1,747
973 1,892
10,214
11,247
12,456
12,712
12,971
13,767
1,244
1,465
1,684
1,727
1,770
1,898
2,120
2,497
2,866
2,938
3,010
3,225
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CONSUMER LIFESTYLES IN THE PHILIPPINES
Housing stock ('000) Housing completions ('000) House price index (2010 = 100) Pet population (animals per household) Ownership of household durables by type - Dishwasher (% of households) - Freezer (% of households) - Microwave oven (% of households) - Refrigerator (% of households) - Telephone (% of households) - Tumble drier (% of households) - Vacuum cleaner (% of households) - Washing machine (% of households) Average household expenditure on running costs - Maintenance and repair of dwellings (Ps per household, at constant prices) - Water and miscellaneous domestic services (Ps per household, at constant prices) - Electricity, gas and other fuels (Ps per household, at constant prices) - Hardware and DIY goods (Ps per household, at constant prices) - Household and domestic services (Ps per household, at constant prices) Source:
Chart 2
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Cancel -
16,964 460
19,107 441
19,545 441
19,983 444
21,315 451
Download And Print 105.6 100.0
114.9
n/a
1.7
1.7
2.0
2.1
2.1
2.2
0.6
1.4
2.5
2.7
2.9
3.5
2.6
3.8
4.7
4.8
4.9
5.3
3.1
4.5
5.9
6.2
6.4
6.9
32.9
39.4
40.5
41.4
42.4
45.5
14.2
11.6
11.6
11.6
11.5
11.4
1.5
1.7
1.9
2.0
2.0
2.1
18.5
28.8
39.2
41.2
43.1
48.4
20.4
31.2
31.9
32.1
32.3
33.1
1,635.3
1,503.5
1,339.1
1,303.4
1,312.8
1,335.6
1,084.1
1,556.3
1,739.8
1,771.5
1,853.1
2,082.6
10,362.8
13,890.9
14,682.9
14,799.0
15,352.8
16,902.1
2,016.6
1,980.0
1,754.2
1,808.4
1,842.2
1,956.7
3,980.0
4,042.6
3,698.3
3,836.6
3,924.6
4,207.3
National statistics, Euromonitor International
Number of Households by Disposable Income Bracket 2005, 2010, 2015
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MONEY AND SAVINGS
Attitudes Toward Payment Methods Cash is still king in the country, as only 7.6% of the population has a credit card. Cash compels consumers to stay within budget, and it is also the preferred mode of payment for most businesses. Bargain shopping centres in Manila usually give big discounts when a customer pays in cash for gadgets or goods in bulk. Although the Trade Department has made it unlawful, some establishments continue to impose additional charges on credit card payments. Some consumers who do not know any better keep on paying the surcharges or are forced to pay in cash. Given the robust Philippine economy, Filipino consumers are looking forward to better job opportunities and higher salaries. More Filipinos are applying for credit cards or using them. New methods of payment are also gaining ground, particularly debit cards, or ATM cards that also act as debit cards. A financial planner has noted that having either a credit card or a debit card is now a must for the average Filipino consumer. About 7.4 million credit cards are in circulation in the Philippines, while debit cards amount to 35.4 million. Debit cards are perceived as more convenient than cash, but more controllable than credit. E-money services, like GCASH and SMART Money, which are offered by the country‘s leading telco fi rms, are also emerging as an alternative mode of payment for consumers and businesses. They are mostly used for mobile payments and for sending and receiving remittances from other parts of the country or from overseas. They do not charge annual membership fees and are cheaper to maintain than credit cards.
Savings The savings ratio, or the percentage of disposable income saved, has been on a decline since 2007, from 2.66% to 2.5% in 2012. In contrast, consumer expenditure has been increasing in
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real terms since 2009; it grew by 4.1% between 2011 and 2012. However, the growth rate is expected to drop slightly over the next few years. Most Filipinos still have a low d egree ofCancel financial literacy. This is aAnd big concern Download Print fo r the government, but at the same time it is an opportunity for banks and financial institutions. Often, Filipinos do not think of the long term; they have low interest and lack considerable knowledge of saving and investing their money for income protection and retirement. Cash savings are mostly made for health and education. According to a Central Bank survey, some households‘ savings drop during the enrolment season, when these households are forced to take out their savings to pay for school tuition fees. This shows that Filipinos still put a premium on education, which is perceived as a way out of poverty for most people. Filipino consumers also sa ve for housing, which many consider their main asset, followed by home appliances, retirement insurance, motor vehicles, and other real property like commercial lots and farms. The government acknowledges that the percentage of Filipino households that have savings i s small, prompting financial literacy programmes to persuade families to save and invest more. About 10% of Filipino households depend partly or fully on remittances sent by family members who work abroad. Those who have savings are mostly remittance-dependent families and people on higher than average incomes. Among people who have savings, only 20% has at least one bank account. The rest, or 80% of Filipinos, mostly low-income households, are still ‗unbanked‘; they tend to keep their money at home rather than in banks. However, often, people have very little to save. Many Filipinos do not worry about tomorrow, and many spend their money as soon as they earn it. In addition, Filipinos are afraid to take risks. They prefer to invest in real estate properties and do not bother to look into financial instruments like stocks, bonds, or mutual funds.
Loans and Mortgages With an annual lending rate of 5.7% in 2012, the outstanding consumer credit balance stood at Ps738 billion, almost triple the balance of Ps246 billion in 2000, when the annual lending rate was 10.9%. The outstanding credit balance is expected to hit a high of Ps1,018 billion by 2015. The outstanding mortgage balance was Ps287 billion in 2012, against Ps162 billion in 2000. It is projected to reach Ps436 billion in 2015. Property developments, mainly condominium projects, are rising throughout Metro Manila and in key cities in the country like Cebu City. The government-funded housing loan agency Pag-IBIG has begun to offer very low interest rates, with the interest rate for minimum-wage earners dropping to an all-time low of 4.5%. Despite the increase in supply and low interest rates, property loans remain out of reach for the majority of Filipinos. Applying for housing loans can be intimidating and cumbersome for minimum-wage earners, some of whom do not have college degrees. A majority of Filipino families would rather apply for small emergency cash loans from banks, cooperatives, employers and state-owned funding agencies, such as the Social Security System (SSS) or the Government Service Insurance System (GSIS). Often, the loans are used to pay for their children‘s school tuition. According to an opinion piece in newspaper Malaya, it is now easier to get a loan to buy a car than to get a bank to finance the construction of a home. The banks have made the process of applying for loans easier, but they remain cautious about lending money. Indeed, the automotive industry is experiencing record-breaking sales. More middle-class Filipinos and those who have regular jobs can get car loans due to low interest rates and the availability of more affordable compact car models. People financing property developers, whereby developers get money from customers ahead of construction, are mostly the families of Filipinos working abroad who have access to bank loans.
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Smartphone craze hits town
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About a decade ago, the Philippines was predominantly a Nokia nation as the Finnish brand was the brand-of-choice among Filipino mobile Now, Samsung, BlackBerry and Cancelphone users. Download And Print iPhone handsets have grown in popularity, according to a report from Rappler. Smartphones have become more affordable; consumers have accepted the local brands Cherry Mobile and Starmobile, offering units at below Ps4,000 or about US$100. Mobile internet sales of PLDT (The Philippine Long Distance Telephone Company) grew to almost P1 billion (US$25 million) in the first quarter of 2013, a hefty 42% year-on-year increase. PLDT attributed the growth to the increasing data usage on smartphones. Consumers are increasingly using their phones to make payments and becoming more confident in making purchases on their mobiles too. Wider credit card use seen An increasing number of Filipinos are warming up to using credit cards. A recent report from Malaya says that, as a result, merchants such as movie houses, events and bazaars have begun to accept credit card payments. ―What we‘re seeing is that customers now are more savvy, they take time to understand the features and maximize the benefits and features of credit cards,‖ according to one Citibank official quoted in the report. Credit cards are traditionally used by Filipinos to pay for groceries, fuel, dining and shopping. The split is estimated a t 80% cash and 20% credit. Table 3
Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015
Financial cards in circulation - ATM cards (mn cards) - Debit cards (mn cards) - Credit cards (mn cards) Financial cards' Transactions (Ps mn, at constant prices) - ATM cards - Debit cards - Credit cards Cash transactions Other paper transactions Annual savings Savings ratio (% of disposable income) Annual lending rate (%) Consumer lending (Ps mn outstanding balance) - Consumer credit - Mortgages/housing Source:
Chart 3
2000
2005
2010
2011
2012
2015
10.1 9.0 3.8
15.0 13.7 4.8
28.0 25.3 6.8
33.1 29.9 7.0
39.3 35.4 7.4
53.2 47.3 8.7
2,108,522 101,358 182,846 3,192,977 458,562
3,216,416 131,369 244,135 3,690,106 462,166
3,861,283 185,688 416,670 4,474,964 412,597
4,028,449 200,836 463,367 4,510,219 398,867
4,179,536 227,661 507,096 4,527,729 396,583
4,549,223 341,741 704,147 4,734,544 401,361
150,539 3.3
130,709 2.2
179,620 2.5
192,160 2.5
200,865 2.5
236,027 2.5
10.9
10.2
7.7
6.7
5.7
n/a
246,594 162,186
345,677 174,743
602,005 204,788
671,450 245,016
738,375 287,158
1,018,432 436,433
National statistics, Euromonitor International
Consumer Lending Compared with Savings and Savings Ratio 2000-2015
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EATING AND DRINKING
Eating Habits Most Filipinos say hello by asking, ―Have you eaten?‖ This reflects the culture of people who like to eat and for whom food is a permanent fixture of both simple and grand occasions. For most Filipinos, a meal without rice is not a worthy lunch or dinner. Pizza, pasta or burgers are normally eaten at ―merienda‖, or the meal in between. Traditional dishes served at home and at Filipino restaurants are rice paired with meat and vegetables. The most common dishes are meat adobo (marinated pork or chicken or a combination and seafood); sinigang (sour soup dish); nilaga (tender meat stew); and pinakbet (mixed vegetable dish). Some of the dishes reflect Spain‘s influence, the country‘s longest coloniser. ―It's difficult to pinpoint what exactly makes up Filipino food. I've been eating it my whole life and I'm no closer to answering that. It's so diverse. We have incorporated a lot of Western and other Asian influences in our methods of cooking,‖ according to one commentator. A typical Filipino eats three meals a day and snacks in between. Aside from lunch and dinner, breakfast can also be a heavy rice meal: rice paired with fish, dried fish or meat. In recent times, Filipinos have been eating more meat and fewer vegetables. The rise in meat consumption is partly attributed to the fact that more Filipinos are eating at fast-food chains, which always have chicken on their menu. According to a 2012 study from the Food and Nutrition Research Institute, the average Filipino's daily consumption of fish, meat and poultry has increased by 60 grams in 30 years. Among poor families and in the provinces, a typical meal consists of rice with fish and/or vegetables. Of late, poor families, particularly those living in Metro Manila, where fish, seafood and vegetables are relatively expensive, have resorted to eating instant noodles and canned goods. ―The GG [short for galunggong which is a type of fish] had long disappeared from the diets of poor families, as even the locally caught variety had become too expensive. Even rice is increasingly becoming a luxury. Instant noodles, filled with salt and artificial flavouring, now feed families, including children who desperately need proper nutrition,‖ commented a consumer rights organisation in a recent report. In 2012, per capita consumer food expenditure reached Ps32,594 and is likely to increase to Ps35,886 by 2015. Most of the spending in 2012 went to bread and cereals (Ps11,636 or 35%), meat (Ps5,471 or 17%), and fish or seafood (Ps4,845 or 15%). Dairy (milk, cheese and eggs) accounted for only 8.7% of the per capita food expenditure at Ps2,865. Aside from the fact that
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milk and cheese are expensive for the majority of Filipinos, many do not like eating dairy products. It is estimated that up to 50% of the population is lactose intolerant. In 2012, the share of spending on fruits was 6%, at Ps2,084;Cancel vegetables 5.9%, at Ps1,948; and fats 4%, at Download Andoils Print Ps1,376; and sugar and confectionery 4%, at Ps1,319. Although Filipinos claim to love coffee, they only spent Ps337 per capita on coffee, tea and cocoa in 2012, less than on mineral waters, soft drinks and juices, at Ps1,821. Working Filipino mothers have been buying instant products, including marinades, soups, and entrees, that only need to be heated up before being served. These product s have received mixed reviews. ―Would I buy this again? Probably not. I‘ve never made afritada [a popular chicken dish] from scratch but I‘m pretty sure I can make a better batch than this,‖ said one consumer, albeit adding that she still wants to try the other instant meals. Regional dishes are common in the provinces, like bagnet (deep-fried crispy pork) in the northern region of Ilocos; kare-kare (a meat and vegetable stew) in Pampanga, a province in Central Luzon, and various tuna dishes in General Santos in the south. While these can be cooked at home, they are laborious to prepare for urbanites who are sho rt of time. Thus, these dishes are usually cooked at the weekend. Families can also simply head to the nearest restaurant or weekend market where traditional Filipino dishes are sold. In a recent report, a Filipino chain of casual dining restaurants said that Filipinos, as consumers, are very easy to convince but can be hard to retain because they are fickle when it comes to brands. For Filipino diners, predominantly a young market with a median age of 21-33, everything has to be ‗now‘ and they like to try out new foods and restaurant concepts. They also like bargains and are easily attracted by promotions, such as online deals from group-buying and discount sites. The most popular types of snacks are rice-based, like puto, suman, and pichi-pichi or Filipinos‘ take on pasta, pansit, or Filipino-style spaghetti (with a sweeter sauce). They are typical fare at any celebrations. Filipinos love their sweets Filipinos have an affinity for sweets, particularly donuts. Dessert or the pasalubong (homecoming gift) of choice is determined by which particular donut brand is popular at the moment. In 2005, people waited in line to get their fill of Gonuts Donuts, then a new store. When legendary Krispy Kreme came to the Philippines, consumers lined up for its original glazed donut. The most recent entry, J.Co., is now getting all the attention with long lines in all its three branches. J.Co., founded by an Indonesian businessman, claims to be made for the Asian market, its bestselling flavours are a mix of Eastern and W estern tastes. Another sweet treat, the ―cronut,‖ a croissant and a donut at the same time, might soon challenge J.Co‘s reign. So far, the sweet, flaky pastry is currently offered in three stores: Wildflour Café and Bakery for the high-end market; Dunkin‘ Donuts and Chatime for the mass market. Ramen as the latest food craze Even before the onset of the rainy season, ramen (a Japanese noodle soup topped with pieces of meat), not the instant variety, was making a buzz around the metropolis. Consumers have been more willing to shell out a few hundred pesos to have a taste of the traditional Japanese noodle dish. For instance, Ikkoryu Fukuoka, a ramen bar in an upscale mall, sells a single serving at Ps380, an amount that could buy two e ntrees in other restaurants. Manila‘s Little Tokyo has been drawing in more diners since the ramen craze started. Regulars include Japanese nationals, a good sign that the food they serve is authentic. For instance, Yamazaki Ramen House serves a bowl for Ps200, slightly less than in other places. ―There are lots more, at least a dozen [ramen places] in the Makati area alone. Some of the other highly recommended ones include Shinjuku Ramen and Hokkaido Ramen Santouka,‖
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stated one writer. ―We've heard people rave about the ramen here but we hated the line so we thought that by going there early before dinner, we won't have to line up that long,‖ commented a customer after trying out a new ramen restaurant. Cancel Download And Print
Drinking Habits Filipinos are soda drinkers; Coca-Cola and Pepsi are drunk on all occasions. ―Always been told how it‘s not too good for the health ever since I was a kid b ut at the end of the day, it‘s all about the taste (it‘s just so good!),‖ said one consumer. In 2004, many consumers switched to drinking C2, a non-carbonated green tea-based drink. Many Filipinos are not into tea, but they have warmed up to drinking cold tea, if sweetened. ―We noticed that they were becoming more concerned with their well-being and were taking better care of themselves. We therefore saw a need for a healthier alternative beverage,‖ explained an official from one tea company. Lately, city residents have started to buy all-natural and healthier drink alternatives, such as ―buko‖ juice (coco water), and fresh fruit juices that are either juiced or blended upon order. Per capita spending on mineral waters, soft drinks, fruit and vegetable juices reached Ps1,821 in 2012 and is expected to increase to Ps2,009 by 2015. The Philippines ranks second in alcohol consumption in Southeast Asia; it is home to at least five million alcohol drinkers. In 2012, Filipino consumers spent on average Ps561 per capita on alcoholic drinks. Beer was the most consumed (Ps340), followed by spirits (Ps205) and wine (Ps17). Filipinos have learned to drink variations of their classic beers and spirits. Now, they can buy apple- and lemon-flavoured beers. ―This is for people who want to socialize with their beer drinking friends without having the bitter taste of beer,‖ said one consumer. In addition, consumers are taking more interest in flavoured spirits ―It is my first time to drink Antonov Vodka and I have no complaint. The apple flavour is just fine and the vodka‘s spirit is not that strong‖ commented another consumer. With the implementation of the Sin Tax Law in 2013, which effectively increases the price of alcoholic drinks, Filipinos‘ per capita expenditure is expected to decline when the law increases taxes on alcoholic drinks by 36%. A liquor vendor has said that the impact is not yet evident: ―weekends are still busy days for the shop, despite the end of the school break and holiday season.‖ Another sari-sari store (neighbourhood convenience store) owner has noted that her beer sales have slowed after she increased the price of a bottle of beer to Ps70 from Ps60. A wine trader has explained that consumers will have an initial shock as the price of wine increases, but in the long run, they will accept and get used to these new prices. Filipinos are some of the biggest alcohol consumers in Asia; hence, the wine trader doubts that these higher prices will change their habits. Per capita wine consumption has remained at Ps17 over the past seven years, and it is expected to remain the same in 2015. Many are intimidated by wine, often associating the drink with a high price. There is also a common notion among Filipinos that ―to drink is to get tipsy,‖ and wine can be expensive if drunk in large amounts. According to a local wine producer, who started his business 13 years ago, there was a ―huge gap between desire and actual consumption because Filipinos believed that wine was beyond their reach or was too strong and bitter for their taste.‖ A news report noted that ―Filipinos are more known to chug down a bottle of beer more than a glass of wine — owing to the latter‘s "snobbish" reputation and its accompanying price, plus the fact that it is not available in the neighborhood store like beer‖. Filipinos are considered to be the world‘s top gin drinkers: they downed 2.7 litres of gin per capita in 2012. ―The Filipinos‘ taste for gin can be attributed in part to good marketing and to the spirit‘s long-established toe-hold in the local market,‖ according to a news report. Filipinos‘ rum consumption is high, at 1.7 litres per capita in 2012.
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CONSUMER LIFESTYLES IN THE PHILIPPINES
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Most Filipinos still cannot afford to buy e xpensive liquor and cannot visit bars or clubs to drink due to the high cost. While new clubs open in upscale parts of Metro Manila, most people continue to drink at home, in bar and grill Cancel restaurants, orDownload in KTVs where is cheaper and Andit Print perceived as equally enjoyable. A typical drinking session at ho me or at a street corner, for instance, only has one glass and a pitcher of beer with ice. ―They share one glass and it is passed around in a circle. [One person is assigned] to put liquor into the glass and remember whose turn it is,‖ wrote one observer who added, ―Drinking in a circle and sharing the glass is a sign of brotherhood and equality among the group.‖ Alcoholic drinks are readily available in supermarkets and sari-sari (corner) stores. Convenience stores sell them 24/7, but most require an I D to prove that the purchaser is of legal drinking age. Some local governments have begun to consider passing stricter regulations to prevent minors from drinking and to curb the increasing number of crimes caused by intoxication. Milk tea anyone? A few years ago, frozen yoghurt or froyo was the hottest craze in Metro Manila. Consumers, especially the health-conscious ones, rushed to get a scoop or two, but milk tea has since taken over. Serenitea, which serves tea steeped in a ―teaspresso‖ machine, is credited for starting the demand for gourmet milk tea. However, other establishments like Bubble Tea were already selling it before the craze began. The beloved drink from Taiwan i s now a common sight in Metro Manila, from global brand Happy Lemon to home-grown store Moonleaf. While the cost of these brewed and flavoured teas is not far from specialty coffee, consumers still line up for the novel beverage. ―Why not? It‘s healthier compared to the usual cola so I don‘t mind drinking a lot of these cold beverages,‖ said one consumer. ―Recent entrants to the milk tea scene offer unique concoctions and give more room for experimentation,‖ observed another customer. Several milk tea joints have since opened shop, not only in Metro Manila but also in the provinces. In addition to Moonleaf, Serenitea, and Happy Lemon, people enjoy Gong Cha, Saint‘s Alps, Chatime, Cobo Milk Tea Shop, Tokyo Bubble Tea, and Dakasi. All-natural juice drink considered a healthier choice Juice cleansing has caught on as a trend, driven partly by local celebrities who have been promoting its health benefits. Since the introduction of a juice fast-delivery service two years ago, which primarily caters to Metro Manila‘s well-off and health-conscious population, several all-natural juice stalls have opened in malls. ―I think Juju Cleanse are a great tandem because I love the veggie and fruit combinations that go int o every single bottle they produce. I absolutely love beets, though for some this juice takes a bit getting used to. It‘s great as a cleanser and you can really see it go through your body,‖ according to one customer. ―Although soda is usually the first alternative, we all know that the sugar content, among other things, makes it both fattening and unhealthy. But because of the weather, it's still so very hard to resist,‖ said one customer of a newly-introduced healthy beverage line. The government, through the Department of Science and Technology, has even come up with natural fruit drinks that come in ready-to-drink packs. Table 4
Eating and Drinking Data 2000, 2005, 2010, 2011, 2012, 2015
Ps per capita, at constant prices Food consumer expenditure - Bread and cereals
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2000
2005
2010
2011
2012
2015
22,916
25,502
29,309
30,897
32,594
35,886
7,814
8,859
10,387
10,996
11,636
12,888
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CONSUMER LIFESTYLES IN THE PHILIPPINES
consumer expenditure - Meat consumer expenditure - Fish and seafood consumer expenditure - Milk, cheese and eggs consumer expenditure - Oils and fats consumer expenditure - Fruit consumer expenditure - Vegetables consumer expenditure - Sugar and confectionery consumer expenditure Coffee, tea and cocoa consumer expenditure Mineral waters, soft drinks, fruit and vegetable juices consumer expenditure Alcoholic drinks consumer expenditure - Beer consumer expenditure - Spirits consumer expenditure - Wine consumer expenditure Catering consumer expenditure Availability of fruit and vegetables (kg per capita per year) Source:
Chart 4
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4,454
4,969
5,204
5,471
5,981
Cancel 3,535
Download4,381 And Print 4,602 3,876
4,845
5,314
2,047
2,263
2,582
2,718
2,865
3,149
881
1,020
1,221
1,298
1,376
1,529
1,628
1,738
1,904
1,987
2,084
2,268
1,473
1,592
1,771
1,853
1,948
2,127
775
935
1,165
1,249
1,319
1,460
222
244
302
319
337
372
1,243
1,411
1,631
1,725
1,821
2,009
601
584
563
567
561
550
291
331
338
343
340
335
298
236
208
208
205
198
12
17
17
17
17
17
1,374
1,835
2,091
2,143
2,232
2,442
157.0
164.9
188.9
189.9
191.2
192.9
National statistics, Euromonitor International
Real Growth in Consumer Expenditure Compared with Real Growth in Consumer Expenditure on Food and Alcoholic Drinks 2000-2015
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GROOMING AND FASHION
Perceptions of Beauty A fair complexion, a chiselled nose, and pin-straight hair (for women): these attributes continue to measure physical attractiveness in the Philippines, an indication that foreign influence on ―beauty‖ remains strong. This general concept of beauty has been around since the Spanish colonial time. ―Maria Clara,‖ the iconic mestiza (mixed race) heroine of a book written by the country‘s national hero Jose Rizal in the 1800s, was described as fair skinned. Today, most of the country‘s ―most beautiful‖ personalities tend to be o f mixed heritage, usually half Filipino/Asian and half-Caucasian. Yet, an increasing number of female celebrities are waving the ―morena‖ (dark) flag with pride. The country‘s strong showings in recent Miss Universe pageants, where the Philippines was represented by dusky beauties who all landed in the top five, is paving the way for the wider acceptance of brown skin. ―In the Philippines, two opposite concepts of beauty are now celebrated. The mestiza beauty with her fair skin, large eyes and Eurasian features is epitomised by the nation‘s sweetheart, Anne Curtis (a Filipino-Australian). Miss Universe first runner-up Janine Tugonon embodies the morena beauty with her caramel skin, blunt nose and jet-black hair,‖ according to a news report. Most Filipino girls aspire to look l ike a mestiza and most Filipino bo ys consider fair-skinned girls attractive. This is despite the fact that most indigenous Filipinos, those without Chinese ancestry, have brown skin colour. ―... I learned that clients prefer mestiza models, especially for hair or beauty a dvertisements that sell ―aspirational beauty.‖ TV commercials for other products use morena girls as they‘re more ―relatable,‖ said one female model who has worked in the Philippines.
Female Grooming A recent international survey, High Heeled Warriors, found that wealthy Filipinas used nine out of 23 brands of consumer products, the most among women i n the region. The study also revealed that these ―wealthy Pinays‖ (those with an average monthly household income of Ps150,000) spent on average Ps11,000 a month on personal care, fragrances, cosmetics, and skin care.
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Per capita spending on personal care in the Philippines reached Ps3,539 in 2012 and is likely to rise to Ps3,900 by 2015. In 2012, Filipinos spent the most on hair care at Ps357, followed by oral care at Ps209, fragrances at Ps77, and colour cosmetics at Ps69. Cancel Download And Print Per capita spending on hair care products and colour cosmetics is set to increase to Ps363 and Ps74 by 2015, respectively. On the other hand, per capita expenditure on oral care products and fragrances is likely to go down to Ps203 and Ps72 by 2015, respectively. Most Filipinos covet whiter skin and believe that any darkening caused by sun exposure can be countered by greater use of whitening products. Per capita spending on sun care products was low in 2012, at Ps2.8, and it is expected to increase slightly to Ps2.9 by 2015. Whitening products, including deodorants, toothpastes and lotions, appeal to most Filipinos. According to a local healthcare provider, 50% of Filipinas use skin whitening products. Demand for whitening products is growing, as advertisements promoting them are widely seen on television, the radio, billboards, and on the internet. While women are the usual target for these products, a wide variety of skin whitening lines is now available for men. In the Philippines, younger women generally do not follow a stringent skincare regimen until they start to see the signs of ageing and skin deterioration, like wrinkles, fine lines or pigmentation. In 2012, per capita spending on skin care products reached Ps317.6, and it is expected to rise slightly to P318.4 in 2015. Long, straight, shiny black hair remains the most popular hairstyle, as reflected in the TV advertisements that promote ―straight is beautiful.‖ Hundreds of straightening irons have been sold and salons have benefited from the demand for straight hair by offering treatments like hair relaxing and hair re-bonding. After the re-bonding craze, perming became trendy, although it was not embraced as much as hair straightening. ―[Curling and perming are] not compatible with most Filipina hair types, so straightening is still p referred,‖ said one observer. Many women want their hair straightened because it is the best solution to tame thick, unruly hair. In addition, the media has played a huge role in instilling that straight hair is indeed more attractive. Cosmetic surgery procedures used to be had secretly, as telling others often resulted in criticism. Times have changed, and cosmetic surgery clinics, su ch as Belo, Calayan and Beverly Hills, now openly advertise on billboards, featuring their latest celebrity endorsers and showing how their images have been ―enhanced.‖ According to a doctor, there is currently no official data on surgical and non-surgical cosmetic procedures. Yet, informal surveys show that, among surgical procedures, rhinoplasty, breast augmentation, liposuction and abdominoplasty are popular. Botulinum toxin injections, hyaluronic acid injections, chemical peels and laser skin resurfacing are among the most commonly performed non-surgical procedures.
Male Grooming Filipino men used to need only a bar of soap and some shampoo when taking a shower. Nowadays, as a result of Filipino men‘s i ncreasing urge to look good, a whole range of personal care products are being used. Special formulations of hair gel, facial wash, toner, moisturiser, deodorant, sunscreen, and even lip balm are catering to men‘s personal care needs. Male grooming products are in high demand, thanks to the growing popularity of the "metrosexual" look and the increase in advertising of male personal care products, according to a recent report on businessinsider.com. Per capita spending on male grooming was Ps54.20 in 2012, similar to 2011, when it reached Ps54.10; by 2015, it is expected to grow very slightly to Ps54.70. This is likely to be due to reduced prices amidst growing competition among male grooming products on the market. According to a beauty columnist on philstar.com, it has become common to find men in dermatologists‘ clinics. ―I‘m tired of using my wife‘s creams when she‘s not there. Too much work. And I forget most of the time. She‘s complaining. She thinks the maid uses her stuff,‖ revealed a male customer.
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It is not common to sport long beards in the Philippines. Hair products, from gels to creams, are popular for styling hair, especially among metrosexuals. Hair colour to cover grey and white hair is also quite common, although theseCancel treatments are seldom bought salons; many DIY Download And in Print hair colour kits can be easily applied at home. For balding or thinning hair, the wealthy go to specialists who offer laser treatments designed to strengthen the hair. Some also offer hair-loss prevention programmes for people who have a family hi story of hair loss. Consumers on smaller budgets often resort to herbal shampoos and other topical solutions that promise blacker, thicker hair. Local male celebrities who drive men‘s grooming trends in the Philippines are usually people whose active lifestyles and tough image most men aspire to. They include actor Derek Ramsay, who endorses a personal care line for men, and athletes Phil Younghusband and Christ Tiu, poster boys for a brand of shampoo and mouthwash, respectively. As the health and wellness trend is growing, men increasingly believe that exercise and diet are not enough to keep looking good and they are increasingly looking after their skin. Safer cosmetics The demand is growing for natural products and those made from natural ingredients that do not contain parabens, sodium laureth sulfate, or other aluminium compounds or synthetic ingredients that may disrupt hormones and affect one‘s health after long-term use. Some consumers now even opt for fragrance-free products. ―I didn‘t breakout further when I started using this product. You can‘t imagine how it was such a relief. The main reason for this, I believe, is that this product is organic and con tains zero chemicals so it didn‘t harm my skin,‖ reported one customer. The use of BB and CC cream is growing Beauty conscious Filipinos are now using new skincare products, the BB cream, short for blemish balm, and the CC cream or complexion correcting cream. ―If you go around the beauty counters these days, chances are, you won‘t miss seeing BB creams —they‘re everywhere, in several brands and various formulations, shades, finishes and price points,‖ described a news report. Many women claim that these products are effective. The products have gained popularity, partly due to K-pop or hallyu, the global spread of South Korean pop culture, which has brought along Korean cosmetics along with it. Filipinos prefer to cover up skin imperfections instead of tackling them at the root. Some women see a BB cream as a makeup product with extra benefits; it reduces the skin care and m akeup process to a minimum, skipping putting all the layers of products on the face.
Fashion Trends The country holds an annual Philippine Fashion Week to showcase trends and launch new collections from budding and veteran designers. The most current fashion trends include prints, from bold geometric designs to florals, and Old World elegance ―which might have been the influence of recently-released Hollywood movie The Great Gatsby,‖ as observed by a reporter. The event f ounder Joey Espino has noted the population‘s improving fashion awareness. ―Now, you see what's happening in other markets and you can do something about it, enjoy what they have. You can adapt their trends to your own style us ing the available resources in this country,‖ he said. The collections for the 2013 holiday season featured a lot of dark and bold hues, contrasting black, white and red with neutral greys in every shade. Chic nudes and browns and spots of colour here and there were also popular. According to fashion magazine Mega, the most stylish women in the Philippines in 2013 include hosts Georgina Wilson and Patti Grandidge, designers Ann Ong and Lilianna Manahan, and artists Maxine Syjuco and Joan Laygo.
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Being in the tropics, Filipinos usually wear light fabrics on regular days. They pile on the clothes only when there is a typhoon or in the colder months between December and February. Work clothes depend on the type of job: jeans and a business top forAnd people who are often in Cancel Download Print the field and business suits for people in corporate settings. Gowns or cocktail dresses and suits or tuxedos are worn for formal events. Filipina attire, barong for men and kimona and wrap sayas for women, are worn on special occasions. Lately, Filipino teenagers and young professionals have embraced fast fashion. A fashion journalist has noted that the Swedish fast-fashion chain H&M is the ―one remaining hold-off in the Philippine fast-fashion shopping list that already has Zara, Uniqlo, Forever 21, Topshop, Mango, Miss Selfridge.‖ ―Since it opened its first store in SM Megamall, Forever 21 has enjoyed enormous success with its customer base increasing at an exponential rate,‖ according to another fashion observer. Given their price, fast-fashion brands are still not affordable to most Filipinos; these brands have gained popularity among middle- and upper-class shoppers. Thrift shopping is quite common in the Philippines. Several ―ukay-ukay‖ (from ‗halukay,‘ which means to dig up) stores nationwide sell used clothes, bags, shoes, bedroom linen and home wares. Shopping at these places is not limited to people on a tight budget, as fashionistas are also known to visit them, looking for vintage clothing, retro styles or branded items. Some even post their finds on their blogs and offer tips on how to shop for pre-l oved clothes, like thebargaindoll.com and ineedsomewants.com. In 2012, per capita expenditure on clothing was Ps1,002, and it is projected to increase to Ps1,025 by 2015. Footwear is worn according to the occasion: leather shoes for business and formal events, and casual loafers or sneakers for recreation. For ladies, high-heeled shoes or kitten heels are the norm at work, and ballerina flats and flip flops on casual days. Per capita spending on footwear was Ps193.2 in 2012, and it is expected to increase to Ps200 by 2015. According to a fashion observer, most Filipina women buy three or four pairs of footwear every year depending on their income level. Three categories of footwear buyers can be spotted based on whether they shop at the high-, middle- or low-end market. According to trendypinayshoes.blogspot.com, high-end consumers normally buy imported shoes with prices starting at US$75 a pair. Their preference is for imported French, Italian and American branded shoes and, occasionally, locally-made branded footwear from local boutiques, made from imported materials, selling at US$50 to US$75 a pair. The middle-end market is composed of working and professional consumers, who consider price and comfort when buying sho es. They pay at least US$12 for a pair. They prefer footwear from local boutiques that are trusted to be distributors of quality, affordable shoes. Low-end consumers only buy very affordable shoes. They forgo quality a nd focus on price. They invest in a fe w pairs of formal shoes that cost US$6 to US$8 a pair. Most of the designs preferred are casual and simple and the shoes cost around US$2.50 a pair. Less fashion-conscious consumers usually do away with accessories. A separate exhibition now takes place specifically to promote accessories: Style Manila. The last exhibition featured the work of six famous Filipino designers. ―Many individuals don‘t realize the power of well-made earrings, belts and necklace to make a fashion statement. Most will purchase accessories from tiangges [flea markets], sacrificing design and craftsmanship for affordability,‖ said one report. In recent Philippine Fashion Week shows, menswear has been one of the most-watched shows. ―[It] was once again jam-packed with fashion enthusiasts yearning for the new designs and subconsciously eager to spot male models walking down the runway,‖ described a news report on the recently-concluded Fashion Week. New trends in Filipino menswear fashion are Japanese inspired, minimalist and baroque. Young Filipinos embrace Korean-inspired fashion Filipinos, especially the young, have embraced Korean fashion; they have been wearing boots, despite the tropical weather, sleeveless tops and short shorts, among others. They try to
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copy Korean stars by wearing hip and chic Korean fashion items. Although some clothes are not suitable to the country‘s warm climate, they still wear them and match them wit h different accessories. Previously, fashion-forward Filipinos only buy Korean Cancel couldDownload And fashion Print online. Now, Korean apparel shops have opened. The Korean fever is making big waves in Manila, from Korean music, to Korean food and Korean fashion. More fashionable Filipino men There is a lot of excitement in the Philippines‘ men‘s fashion segment. Filipino men‘s taste in fashion is starting to evolve, according to observers. ―Your typical Filipino office worker probably goes to work in black, pleated ―dress‖ pants, a billowy dress shirt, square-toed, synthetic loafers, and a too-wide necktie,‖ stated one writer. A fashion observer has noted that the recent menswear show at the Philippine Fashion Week has gone ―way beyond typical suits, ill-fitting ensembles and sometimes interpretations that tip towards being too flamboyant for the stylish man.‖ Sports-inspired men‘s fashion stands out; the many items available are varied and stylish and go well beyond jersey tops and shorts. Table 5
Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015
Ps per capita, at constant prices Personal care consumer expenditure Colour cosmetics retail sales Fragrances retail sales Hair care retail sales Oral care retail sales Men's grooming retail sales Skin care retail sales Sun care retail sales Clothing consumer expenditure - Clothing materials consumer expenditure - Garments consumer expenditure - Other clothing consumer expenditure - Clothing cleaning, repair and hire consumer expenditure Footwear consumer expenditure Source:
Chart 5
2000
2005
2010
2011
2012
2015
2,550.8
3,064.7
3,185.5
3,490.6
3,539.2
3,900.1
52.6
58.8
66.4
67.5
69.3
74.2
109.3 338.6 283.7 65.1
96.1 376.4 284.7 62.2
88.0 357.5 214.7 55.8
81.6 354.7 212.2 54.1
77.3 357.3 208.9 54.2
72.4 363.0 202.9 54.7
225.4 3.2 1,183.2
309.3 2.7 1,121.0
326.8 2.4 1,010.7
321.4 2.7 988.2
317.6 2.8 1,002.1
318.4 2.9 1,025.3
32.7
24.2
17.4
16.3
16.0
15.3
1,042.4
1,010.5
926.1
907.9
922.4
947.6
69.9
57.1
45.4
43.4
43.3
42.7
38.2
29.2
21.8
20.6
20.4
19.7
204.7
213.6
194.7
190.2
193.2
200.0
National statistics, Euromonitor International
Real Growth in Consumer Expenditure Compared with Real Growth in Consumer Expenditure on Clothing, Footwear and Personal Care 2000-2015
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HEALTH AND WELLNESS
Attitudes To Health and Well-being The Philippines is yet to have a fully functional universal public healthcare system. A majority of the country‘s 97 million people cannot afford essential drugs, even though generic equivalents are available for some medicines. Total health expenditure stood at $89.3 per capita in 2012 or about a third of the sala ry of a minimum-wage earner in Metro Manila. Total health spending accounted for about 3.5% of the country‘s GDP. Public health spending represented 35.7% of the total, against 64.3% for private health. The Health Department has noted that the share of medicine costs out of total spending has be en higher for the poor than for richer Filipinos. Except in the capital and nearby cities, where residents prefer private hospitals and clinics, health centres are the most visited health facilities in the country for medical check-ups, the treatment of illnesses and injuries and dental care. Services and some medicines are often free at health centres. The main sources of health financing are the national and local governments, public and private insurance, personal money and donors. Since the majority of the population is uninsured, most patients spend their own money during confinement. This is prevalent in public hospitals, where most patients are poor. Access to essential drugs remains a challenge, especially among the poorest. The government has adopted a number of legislative acts to address this, but implementation hurdles remain. The Generic Act of 1988 requires the extensive use of generic drugs and seeks to educate Filipinos on the existence and availability of generic drugs. The Cheaper Medicines Act of 2008 enables generic drug manufacturers to compete better with the originators while the Executive Order prescribes the maximum retail prices for selected drugs and medicines. The country faces two pressing health concerns. A large number of Filipinos have tuberculosis and more suffer from HIV-AIDS. An estimated 200,000 to 600,000 Filipinos have active TB and up to 6,000 new cases of resistant TB are seen each year. The recorded number of Filipinos who are suffering from HIV-AIDS was 12,082 in January 2013. Since the start of the year, the rate of increase has risen, now estimated at 12 new cases daily. Self-medication is prevalent among Filipinos who wish to save on costly hospital visits. An appointment with a private doctor normally starts at Ps300. Self-medication is cited as a cause
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for the high number of drug-resistant TB patients. Ordinary colds and flu are usually treated with over-the-counter medicines. In rural areas, people often use alternative medicines and herbs; their use has become more popular sinceCancel the Health Department approved at least 10 medicinal Download And Print plants for basic medical care. ―In recent years, native plants started becoming popular among Filipinos, who have been shocked no end by expensive Western medicines,‖ according to a news report. An increase in the demand for food supplements has been noted lately. Health Secretary Esperanza Cabral once remarked that many are being misled into thinking that these food supplements can cure diseases. To address this, in 2010 the Hea lth Department began to require food supplement manufacturers to label their products as non-medicinal.
Obesity The obesity rate among Filipinos aged 15 and up was 7.2% in 2012. The rate has been rising, and it is estimated that it will reach 7.8% by 2015, from 4.9% in 2000. About 25.2% of the population aged 15 and up was estimated to be overweight in 2012. The Health Department has attributed the rise in obesity and overweight to increasingly sedentary lifestyles and changes in the Filipino diet. Filipinos are now eating more meat, but eating fewer fruits and vegetables as they have become more expensive. More are also eating out, and fast food has become the norm as it is relatively less expensive, with most fast-food meals only a few pesos more than the meals served at ―carinderias‖ (neighbourhood eateries). Urban workers are also finding themselves eating more to combat stress and as a reward. ―Using food to reward myself and cheer me up when I feel down has caused me to gain a lot of weight,‖ an entrepreneur was quoted as saying in one news report. Metro Manila also has few parks for physical recreation and exercise. Those who can afford it and have the time enrol in fitness classes or go to gyms to exercise. Children are not spared, especially in cities. Yet, parents have started to take notice. Previously, big kids were considered healthy kids and it was seen as a sign of wealth and prosperity. ―Today, childhood obesity is being regarded as the newest form of malnutrition, which has affected not only the affluent Western countries, but also the Asian countries like the Philippines, as it poses numerous health risks,‖ explained a senator who has initiated a programme to encourage healthy diets and lifestyles among children. ―Ask a child about their favourite snack and fruits are rarely mentioned. Instead of spotting kids running on the streets, you will find toddlers to adolescents making their avatars run for them in ―Temple Run‖ or ―DotA‖,‖ expressed an observer. The growing number of absentee parents is also seen as a factor. ―With many Filipinos working abroad, it is possible that there are also some parents who may make up for their physical presence by allowing a child to watch plenty of TV, or play video and computer games,‖ said another. The government has launched the campaign ―Oh My Gulay! (OMG!)‖ to ensure proper diet for grade-school children. The programme highlights the importance and advantage of eating vegetables.
Attitudes To Smoking Consumer expenditure on tobacco amounted to Ps433.7 per capita in 2012, down from the Ps644.9 spent in 2000. The decrease in tobacco consumption among Filipinos is likely to continue; per capita tobacco expenditure is expected to fall to Ps422.9 by 2015. In 2012, the smoking prevalence amongst the adult population was 27.9%; it is expected to drop to 27.6% by 2015. Most smokers in the country are men; about 47% of the male adult population smoked in 2012. Only 9% of female Filipino adults smoked in 2012. The rates are expected to fall to 46.7% and 8.7% for male and female adults, respectively, by 2015.
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Despite the drop in the number of smokers, the Philippines has one of Asia‘s highest smoking rates. Tobacco-related diseases cost the country some Ps177 billion in 2012. At the start of 2013, the government started to implement a law raisingDownload taxes on ―sin‖ products, Cancel And Print including tobacco and alcohol. The tax on cigarettes will gradually be raised to Ps30 per pack by 2017, almost doubling the current price to around Ps52, to discourage people from smoking. In 2003, the country enacted a law restricting smoking in enclosed public places and workplaces. Even local governments in the provinces have started to implement anti-smoking programmes. Albay, a province south of Metro Manila, set a new world record in 2013 for creating the largest ―no smoking sign.‖ Filipinos are becoming less afraid of generic drugs There is now a growing acceptance of the more affordable generic medicines in the country. ―I can‘t imagine life without Mefenamic Acid, Ibuprofens, and Paracetamols... I had an idea to buy cheap and in bulk which should all save us some money, time, ...‖ explained a mother after trying out a service delivering products from generics company, The Generics Pharmacy. She added that one of their many missions is to make medicines and healthcare accessible to more Filipinos by offering generic drugs which function the same but cost less. A proponent of the Cheaper Medicines Law has also noticed Filipinos‘ greater acceptance. ―The good thing is that consumption of generics drugs has increased, with 55% of households purchasing generic drugs. However, the price of branded (innovator) products continue to increase, and with overwhelming dominance of branded products in the market, whatever gains that we have had from the generics law and the cheaper medicines law could be easily undermined,‖ according to the senator. In 2009, the Health Department estimated that 60% of Filipinos were opting for generic medicines over more expensive branded counterparts. Smokers shift to cheaper brands The Sin Tax Law, which imposes higher taxes on cigarettes and alcohol, is expected to discourage smokers. While it can force low-income individuals to buy fewer cigarettes, those who can still afford them are likely to continue smoking. Months after its implementation, the government has reported that its tax revenues on sin goods have increased. Smokers have shifted to cheaper cigarette brands. At the start of the tax implementation, many small vendors were worried about the law‘s impact on their businesses. ―The new prices compared to countries like Singapore, for example, are still low, but for the ordinary Filipinos they are expensive,‖ a shop owner was quoted as saying in a news report. An informal survey conducted by The LaSallian, the official paper of a private university where most of the students come from rich families, showed that 10% of those surveyed have stopped smoking, 36% has purchased fewer cigarettes and 36% has reported no change in their cigarette consumption. Table 6
Health and Wellness Data 2000, 2005, 2010, 2011, 2012, 2015
Total health expenditure (US$ per capita) Share of total health expenditure in GDP (% of total GDP) - Public health expenditure's share of total health expenditure (% of total health expenditure)
© Euromonitor International
2000
2005
2010
2011
2012
2015
33.5
42.1
77.3
84.6
89.3
n/a
3.2
3.5
3.6
3.6
3.5
n/a
47.6
39.2
35.3
35.5
35.7
n/a
35
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CONSUMER LIFESTYLES IN THE PHILIPPINES
- Private health expenditure's share of total health expenditure (% of total health expenditure) Healthy life expectancy at birth: total population (years) Healthy life expectancy at birth: males (years) Healthy life expectancy at birth: females (years) Average supply of food calories per day (calories per capita) Average supply of protein per day (grams per capita) Average supply of fat per day (grams per capita) Obese population (BMI 30 kg/sq m or more) (% of population aged 15+) Overweight population (BMI 25-30 kg/sq m or more) (% of population aged 15+) Tobacco consumer expenditure (Ps per capita, at constant prices) Smoking prevalence amongst adult population (% of total adult population) Smoking prevalence amongst adult male population (% of male adult population) Smoking prevalence amongst adult female population (% of female adult population) Source:
Chart 6
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60.8
64.7
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55.1
59.7
51.0
64.5
64.3
n/a
62.3
62.5
62.8
63.6
56.7
59.6
60.0
60.3
61.2
59.3
62.8
64.9
65.2
65.4
66.2
2,412.0
2,462.0
2,573.7
2,595.2
2,626.6
2,695.1
54.5
57.0
60.0
60.7
61.6
63.5
50.6
46.2
50.3
50.6
51.0
51.8
4.9
5.9
6.8
7.0
7.2
7.8
20.7
22.8
24.6
24.9
25.2
26.2
644.9
598.8
454.2
438.6
433.7
422.9
26.2
25.9
27.9
27.9
27.9
27.6
44.1
42.0
47.0
47.0
47.0
46.7
8.4
10.0
9.0
9.0
9.0
8.7
National statistics, Euromonitor International
Real Growth in Public and Private Expenditure on Health Compared with Healthy Life Expectancy at Birth 2000-2015
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SHOPPING HABITS
Main Household Shop The Philippines is still far from achieving the ―inclusive growth‖ sought by the Aquino administration. Yet, the country‘s strong economy is reflected in the growing buying power of consumers, especially the middle class. Grocery spending per household has been falling in recent years, but it is set to recover by 2015. Average household spending at grocery retailers fell to Ps83,397.9 in 2010 from Ps96,407.2 in 2005. It fell further to Ps81,555.5 in 2011 and Ps81,380.1 in 2012 due to the tight economy. Spending at traditional grocery retailers is set to grow to Ps63,326.9 per household b y 2015, from Ps61,060.3 in 2012. Over the past 12 years, average household spending at traditional grocery retailers reached its peak in 2005 at Ps78,349. In 2012, households spent Ps15,688 in supermarkets; this figure is expected to reach Ps16,917, in 2015. Since public transport systems and terminals are often located near or in the middle of commercial centres, it has become very convenient to drop by the supermarket or grocery store for additional or emergency purchases. Supermarkets and grocery stores have sprouted all over the metro, prompting Filipinos to shop more frequently and less in bulk than before. More are buying additional essential items at the supermarket rather than from neighbourhood sari-sari stores. Among the top 10 brands in the Philippines, seven are food products, such as coffee, milk, seasoning and noodles, and three are non-food household items (laundry soap, bath soap and shampoo). Only three of these are home-grown names, indicating that most Filipino shoppers still prefer global brands. When shopping for daily cosmetic products, such as shampoo, conditioner and soap, Filipino shoppers from low- to middle-income classes usually buy micropackaged or sachet products. The government estimates that 25% of people live on a budget of Ps46.14 a day; for these people, low-cost sachets make the otherwise expensive daily necessities affordable. An observer remarks that most people have to budget carefully. While it may be cheaper in the long run to buy in bulk, poorer people buy only what they need for the moment. Yet, among large families and busy professionals, the trend is to buy in bulk, which is perceived as more convenient and economical. As an alternative to supermarkets and grocery stores, weekend markets have mushroomed in many locations, at least five are cur rently scattered across Metro Manila. At these markets,
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organic farmers and producers sell their goods directly to health- and eco-conscious consumers and foodies gather to taste chefs‘ specialty dishes. Yet, consumers need not always wait for the weekend for their fill of organic or locally-produced fruits,And and Print meats. The Cancel vegetables, Download Department of Agriculture (DA) and the Philippine Association of Supermarkets have partnered to help local farmers by referring supermarkets to agro-fishery suppliers, farmers‘ groups and producers. Supermarkets get a regular supply of organic agricultural products while farmers are encouraged to produce more and earn more.
Shopping for Big-ticket Items With more disposable income, Filipinos‘ appetite for appliances, cars, and furnishings is also growing. A recent survey by the Central Bank, which measured t he buying intentions of Filipino households, found that the demand for houses, lots and motor vehicles has increased over the last year. In addition to the prospect of having higher incomes in the future, consumers‘ buying intentions are also driven by remittances from migrant workers. The Central Bank explained that, as households believe that the Philippine economy will perform favourably and incomes will be steady or increase further, many are in the mood to bu y big-ticket items with the help o f bank loans. People will need domestic appliances, such as LED televisions, refrigerators and microwave ovens, in their new homes. Just as some are buying their first washing machines , others are upgrading their appliances to larger capacity models with enhanced technology. Airconditioners, washing machines, and refrigerators posted high volume demand in 2012. Consumers flock to commercial centres to visit an Abenson, SM Appliance Center, or Automatic Center and check out Blims or Greenhills for furniture. Electronics are widely available; most malls have a wing or entire floor dedicated to mobile phones, tablets, and other consumer gadgets. In 2012, average household expenditure on electronics and appliances reached Ps7,157.90, and it is expected to grow to Ps7,572.20 by 2015. Filipinos are also opting to buy more energy-efficient home appliances; they read carefully the energy efficiency tags on the equipment. The Department of Energy has recently issued a new yellow label to make it easier for consumers looking for energy-efficient appliances and lighting equipment. The yellow label can be found on air conditioners, refrigerators, lamp ballasts, and compact fluorescent lamps. When making a purchase decision, price remains a big factor. ―Definitely, we want a unit with an inverter. But whether it‘ll be a Samsung, an LG or a Panasonic, we‘ll have to study and compare the features some more. And, of course, the price will be a major fact or,‖ observed a mother who was trying to decide which refrigerator to buy - a more affordable Samsung with an inverter, or an LG or Panasonic with more eco-friendly features.
Personal Shopping Given their convenient locations and wide arrays of products and services, malls are favoured when consumers look for apparel, footwear, and beauty and personal care products. Right before school starts and the Christmas season, bargain hunters still flock to market districts, Divisoria and Baclaran, which sell a variety of goods at very low prices, but malls offer more comfort. Besides, malls appear to have replaced parks on weekends. Families go to malls to shop, eat, catch a movie, or simply spend time together. In a news report, Filipinos were found to derive enjoyment from grocery shopping. ―Trips to the supermarkets, at least in the Philippines, seem like family affairs, with parents bringing their children and, sometimes, their babies, too,‖ noted one observer. Filipinos visit department stores and stand-alone stores at the malls to shop for clothing, footwear, beauty and personal care products. In Metro Manila, some families also drive to warehouses outside the metro to buy discounted branded shoes and apparel.
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Shopping Online
Cancel Download Print Despite the rise of online stores, Filipinos‘ shopping habits largely And remain traditional, according to Reader‘s Digest Trusted Brand 2013 Survey. Filipinos are among the most active in social media, but only 17% has made the s hift to online shopping in the last two years. Less than 10% of Filipinos actively share their brand experiences online, and only 7% trusts online comments regarding products sold by online stores. However, the buy-and-sell sector seems to be doing well. Websites like sulit.com and ayosdito.com, which offer a free platform for posting classified ads for c lothing, gadgets, furniture and appliances, among others, are revolutionising the way Filipinos buy and sell items. Sulit.com, founded in 2006, today has at least 2 million registered users, with an average 10 million daily page views, including 700,000 unique visitors per day. However, these transactions do not take place purely online, as buyers and sellers still need to meet to exchange goods and pay. This perhaps explains why Filipinos embrace this form of shopping more than pure online shopping. As more Filipinos get access to the internet through mobile devices and get accustomed to online shopping, household internet retailing is expected to reach Ps731.30 in 2015, up from Ps682.10 in 2012. Group buying is rising Filipinos are shopping online, not just for convenience, but also to get good deals. Filipinos are known to be frugal and look for discounts or a bargain price in order to stretch their limited budgets. They are always on the look-out for promotions and the best deals. Unsurprisingly, group buying, whereby discounted items are sold to buyers if the sellers get a specified number of buyers, has increasingly become popular in the Philippines. ―There are more group buying sites! Wow! Those sites just kept popping up. I got overwhelmed a bit after buying too many vouchers. I had to control myself or else, I would be spending too much money for stuff I don‘t really need,‖ said one consumer. Discounts range from 10% to 70%, allowing consumers to buy a wide range of products and services, such as clothes, gadgets, home appliances, and discount coupons in restaurants, hotels, and travel packages, at very affordable rates. Blog thinkrichbefree.com li sts popular group buying sites among Filipinos: Groupon Philippines, Deal Grocer, Ensogo, Pinoy Great Deals, Cash Cash Pinoy, Deal Spot, Deal Dozen, Metro Deal, Pinoy Vouchers, Deal Amigos, and Okay Okay Deals. Group buying sites offer different payment methods, making deals accessible even for those who do not have credit cards. Bank deposits, mobile money transfers, and the traditional cash on delivery are welcome. City dwellers make time for membership shopping When warehouse membership shopping outlet S&R started to enlist members in Davao City in southern Philippines, it had 10,000 members ahead of the store‘s formal opening. Given the warm response, the store expects the number to double in just a month. The Davao store is its seventh store to date. Members like the exclusive l ocal and imported merchandise in the stores, including baked goods, grocery items, wellness and beauty products and home furnishings, as well as the exclusive deals and disc ounts on offer. Shoppers have expressed that, at S&R, most products are imported and it feels like shopping at duty-free shops only more conveniently and cheaply. Others comment that it feels like shopping in th e US. ―The grocery side of the store is what really shines for me. They carry a lot of products from the states you won‘t find at SM or Market Market. They also carry many of the items in bulk, great for a big family but sometimes too much for a small one. We usually stock up on things like toilet paper and diapers which are noticeably cheaper than the other stores here in the area,‖ said a shopper.
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Shopping Data 2000, 2005, 2010, 2011, 2012, 2015
Ps per household, at constant prices
Grocery retailers' - Modern grocery retailers' -- Convenience stores' -- Discounters' -- Forecourt retailers' -- Hypermarkets' -- Supermarkets' Traditional grocery retailers' -- Food/drink/tobacco specialists' -- Independent small grocers' -- Other grocery retailers' Apparel specialist retailers' Electronics and appliance specialist retailers' Health and beauty specialist retailers' Home and garden specialist retailers' Leisure and personal goods specialist retailers' Mixed retailers' Other non-grocery retailers' Internet retailing Source:
Chart 7
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2000
2005
2010
2011
2012
2015
93,226.6 15,320.4
96,407.2 18,058.3
83,397.9 19,265.3
81,555.5 19,646.7
81,380.1 20,319.8
85,703.6 22,376.7
501.8 71.3 591.7 14,155.7 77,906.2
589.7 68.9 1,564.3 15,835.4 78,349.0
616.7 2.4 83.0 3,179.4 15,383.8 64,132.7
682.5 38.4 80.6 3,405.7 15,439.5 61,908.8
719.5 53.3 83.0 3,776.0 15,688.0 61,060.3
873.7 92.1 94.9 4,398.9 16,917.1 63,326.9
5,752.8
4,901.3
4,394.2
4,331.9
4,338.9
4,446.1
7,125.6
5,507.8
4,052.3
3,869.9
3,836.1
3,896.7
65,027.8
67,939.9
55,686.2
53,707.0
52,885.3
54,984.2
8,232.1
6,513.3
5,156.4
4,983.4
4,877.5
4,853.8
11,337.1
9,367.4
7,314.8
7,186.2
7,157.9
7,572.2
8,943.4
9,584.6
7,970.8
7,750.2
7,671.9
7,851.1
14,832.5
12,033.0
8,841.2
8,574.0
8,583.6
8,381.7
8,264.9
6,442.2
5,049.7
4,863.5
4,779.9
4,761.7
9,404.3 15,081.5
8,494.3 10,994.3
7,990.0 8,095.8
8,025.0 7,845.1
8,265.6 7,739.8
8,753.7 7,537.3
655.6
634.8
635.0
654.0
682.1
731.3
National statistics, Euromonitor International
Index of Retail Sales Compared with Real Growth in Retail Sales through Hypermarkets, Supermarkets and Internet Retailing 2000-2015
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LEISURE AND RECREATION
Staying in Watching television remains Filipinos‘ most popular form of in-house entertainment. This is especially true in Metro Manila where the number of parks and space for activities, such as gardening, is limited. In 2012, 73.5 % of Philippine households had a colour TV set, 38.6% had a cable TV connection and only 0.4% of households had a satellite TV system. Over the next few years, the growth of colour TV and cable TV will be moderate at the expense of the Internet. By 2015, 74.9% of households will have colour TV sets, 3 9.8% cable TV and 0.6% satellite TV. Consumer expenditure on leisure and recreation per capita stood at Ps1,374 in 2012, and this is set to increase to Ps1,525.7 by 2015. Most often Filipinos watch locally-produced dramas and imported dramas from South Korea, news, gossip shows and sports, which now i nclude football games, in addition to the staple basketball games. ―For the poor and uneducated, the television is the only tool they can afford to make it easier for them to cope with their misery. The promise of acquiring a better life through other people ―better lives‖ on television shows help relieve persistent feelings of depression or general sadness,‖ described a report. One of the latest breakthroughs in television is the hit light drama ―Be Careful with My Heart.‖ It is about a young hardworking woman who became a nanny for the child of a wealthy widower and ended up romantically involved with him. In 2012, only 13.1% of households had an internet-enabled computer, and the number is set to reach 16.8% by 2015. With a monthly subscription starting at Ps999, most households cannot afford to have internet access at home. Now, more Filipinos get internet and social media access through their internet-enabled smartphones. In 2012, 83.9% of households had mobile telephones and this is likely to increase to 8 8.5% by 2015. The growth in data usage on smartphones, primarily driven by the availability of locally-branded smartphones, is still concentrated in Metro Manila. One telecom company estimates that the average monthly revenue per subscriber in the Philippines is below US$5. Filipinos are among the world‘s most sociable people and their social media presence proves it. Facebook is particularly popular with students and women, especially young housewives, who use i t to stay in touch with their family and friends. On Facebook, they chat, share content and play online games. ―Facebook is easily
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the most popular online destination in the country, and Filipinos spend considerable amounts of time on the site despite a large volume of access coming from simple feature phones,‖ explains wearesocial.net. It also notes that Filipinos are now spending twice as much time online as Cancel Download And Print watching TV. Most Filipinos, especially those li ving in Metro Manila, think that staying at home during their free time is cheaper than going out. For most, the second best option is to go to the nearest mall to meet with friends, shop or eat. At home, asid e from watching TV and browsing the internet, some read or play video games. Per capita spending on newspapers, magazines, books and stationery stood at Ps178.6 in 2012, and it is forecasted to increase to Ps191 by 2015. Meanwhile, about 2.4% of households had video game consoles in 2012, a nd this number is expected to reach 2.5% by 2015.
Going Out Going to the mall is the most common leisure activity within Metro Manila. A mall has almost everything, from dining to movies and handy service centres, such as those processing bill payments. ―We live and breathe malls—it's ingrained in our culture—and it's just so difficult to imagine being in a city without one. We spend a lot of time and money at the mall; and in return, they give us dining experiences, numerous shopping options, entertainment and, on sweatinducing days, free air-conditioning,‖ explained a frequent mall visitor. Between a mall and a museum, most Filipinos choose going to the mall: a curator of a museum that is adjacent to a mall observed that, even if the museum is attached to a mall, few people visit the museum. Now, more Filipinos are spending money on live shows of foreign acts due to the greater choice and their increasing spending power. Last year was described as particularly big for concerts. ―Social media has also had a big hand in improving our concert line-ups, with today‘s viewers — freed from the need to send fan mail — able to directly, instantly appeal to singers or bands via Twitter,‖ described a news report.
Sport and Fitness A recent report on entrepreneur.com.ph identifies a growing trend among Filipinos to practice a lifestyle of fitness and health. In the report, a spokesperson for a local spa association has noted that the country is entering the ―experience economy‖ stage. The emphasis is on creating experiences to address consumers‘ more sophisticated needs. The fitness regimens that have remained strong, especially among young city dwellers, are biking, running and going to the gym. Fitness centres that offer a variety of exercise options have attracted people. A consumer has explained that she likes a new gym in Metro Manila because it is ―non-traditional‖ as it does not have bulky fitness machines. ―It has value for your time because a complete workout routine is achievable in 30 minutes and lastly has value for your money. An annual membership is just Ps2,090 per month,‖ she added. Zumba and PlanaFORMA have recently become the new craze. They are particularly popular with young professionals and college students who see them as fun ways to lose weight. People find streaming TV is a practical alternative Lately, more Filipinos, not only those living abroad, have been watching TV online. A local TV station has noted that, from 306,000 users at the end of 2011, it had 1.9 million registered users by the end of March 2013. In the country, the growth is driven by the greater use of smartphones and other Internet-enabled mobile devices, which are now more affordable. For Filipinos abroad, watching locally-produced TV programmes provides solace. ―Luckily for Filipinos living abroad in this time of digital communications and the internet, the pangs of loneliness has been somewhat mitigated by our ability to ―reach out and touch someone‖
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regardless of space and time. They not only get to chat with and ―see‖ friends and loved ones back home in real-time over the internet, they also get to watch TV as if they are back in their own living rooms in the Philippines,‖ said a Filipino who Download lives abroad.And Print Cancel The popularity of football is rising Basketball has been the country‘s most popular sport for a very long time. This started to change in 2010 when the Philippine Azkals, then a struggling national football team, defeated Vietnam, the defending champion of the AFF Suzuki Cup. ―For a country where basketball has been the dominant sport for a very long time, football is quickly gaining ground thanks to the Philippine football team Azkals and the popular Younghusband brothers, Phil and James,‖ observed a news report. It has helped that the Younghusbands are two good-looking BritishFilipinos. A football fan has commented that the girls‘ sudden interest in football has been boosted by having good-looking men playing for the Azkals, formally known as the Philippines National Football Team.
Vacations Each year, employees in the Philippines get at least 15 days of paid annual leave. Some convert the paid leave into cash, others choose to sta y at home, but an increasing number of Filipinos, mostly singles, young professionals and those from better-off families, use the time to travel. Filipinos are travelling within the country more frequently; their preferred local destinations are Cebu City, Boracay and Palawan. A news report explains that fli ghts are more frequent and more land transportation routes to domestic tourism hotspots are available. The Tourism Department expects the number of local travellers to reach 56.1 mil lion by 2016, up from the recorded 37.5 million in 2011. Overseas destinations such as Singapore and Hong Kong are preferred due to their proximity. They are also convenient as no visa is required for Filipino holidaymakers. Hong Kong is a particularly popular shopping destination during Christmas, the Holy Week and the July summer sales season. A news report revealed that Filipinos spend just three to five days in the city – short, but with a fully-packed shopping itinerary. It added that ―The only clothes packed from the Philippines are the clothes worn to the airport on the first day, just enough underwear, and whatever is required for sleep. Everything else will just be bought from Giordano, Bossini, Cotton On, H&M, Marks & Spencer, Uniqlo, Pull & Bear, Baleno, and Zara...‖ The top reasons why some Filipinos choose to spend their vacation abroad are the availability of cheaper international airfares, the expensive hotel rates in the country, shopping, gaining new experiences and deals from group buying sites, such as Ensogo and Groupon. Per capita spending on packaged holidays reached Ps207.5 in 2012, almost equivalent to just one movie ticket, but the majority of Fili pinos cannot yet afford packaged holidays, which are considered economical. Per capita spending will rise slightly to Ps233.1 by 2015. Per capita spending on local accommodation amounted to Ps327 in 2012, and it is set to increase to Ps349.4 by 2015. Filipinos spend more on shopping than on food. In 2012, per capita spending on shopping reached Ps297.1, while spending on food was only Ps268.9; in 2015, they are forecast to amount to Ps395.4 and Ps353.1, respectively. While travelling abroad, per capita spending on accommodation reached Ps576.9, spending on food amounted to Ps890.6 and on shopping Ps313.4 in 2012. These figures are projected to increase only slightly by 2015.
Public Holidays, Celebrations and Gift-giving Public holidays include New Year‘s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan (Day of Valor), Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Eid ul Fitr,
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CONSUMER LIFESTYLES IN THE PHILIPPINES
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Christmas Day and Rizal Day (Birthday of the national hero Jose Rizal). The government sometimes moves the observance of some public holidays to either Friday or Monday to create long holiday weekends. In 2013, there areCancel four long weekends - in March, August, November Download And Print and December. Being a largely Catholic country, the Holy Week, which covers Maundy Thursday and Good Friday, is the longest and most-awaited holiday in the country. Many working Filipinos take the three days before Maundy Thursday off to have a full week of vacation. Almost all commercial establishments are closed on Maundy Thursday and Good Friday. Filipinos working in Metro Manila and other cities often go back to their provinces and hometowns during Holy Week. Some also use the days to go to the country‘s tourist spots or to travel abroad. Another big celebration in the country is fiesta, a celebration held in honour of a town‘s patron saint. A fiesta celebration can mean at least a full day of non-stop eating for the host families and their guests, most of whom are relatives and friends, who may have come from far away. ―Rain or shine, high tide or low tide, nobody stops Filipinos from coming over to a fiesta, where they flock in numbers. Even if it was a long way off, people have got to go there. It‘s never too expensive to ride a passenger jeep or tricycle [two common modes of transporta tion],‖ revealed an observer. Birthdays are also important in almost every Filipino household. On birthdays, the person who has a birthday buys his/her family, friends, or co-workers a meal and drinks, or the other way around. Typically, no Filipino birthday celebration is complete without ―pansit‖, a noodle dish believed to assure the celebrant a long life. Most celebrations at home involve singing. ―Almost every Philippine home has a karaoke machine or a Magic Sing microphone – a digital microphone that turns your television into a karaoke machine. It‘s almost always a feature at birthday and holiday parties,‖ described one news report. The rise of the short vacation in a local hotel For most Filipino families, a vacation means being close to a beach or a pool. For Metro Manila residents, going to a beach requires hours of driving to nearby provinces or flying to a beach destination. The less expensive option is to stay at a hotel or resort club within Metro Manila. ―I was on the hunt for a bargain stay in a hotel that has swimming pool but nothing fitted my budget. My next option was a day tour to a resort club of some sort until I searched online for 'swimming pool manila' which led me to Ace Water Spa in Kapitolyo Pasig,‖ according to one holidaymaker looking for a short holiday getaway. Group-buying sites are shaping Filipinos‘ travel plans With their value-for-money proposition, group buying sites have found an audience among Filipinos. ―Group-buying sites or deal sites are popping up like crazy in the Philippines? Who can blame them? Filipinos are frugal by nature, always looking for the best deals, sales and discounts on everything‖, commented an observer. Popular deals on these websites for Filipino customers include hotel accommodation and holiday packages. ―I was only introduced to this mode of online shopping a couple of months ago but mind you, I have already availed of different services with at least 50% off their total prices – spa and massage treatments, hotel bookings in Baguio and Cebu, restaurant buffets, deluxe pedicure and foot spa, among other things,‖ according to one customer. ―It really got me hooked so I have subscribed to every group buying site in the Philippines and am continuously scouting for bargain deals and promos close to home and everywhere else I can travel to in the next months,‖ she added. Table 8
Leisure and Recreation Data 2000, 2005, 2010, 2011, 2012, 2015
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CONSUMER LIFESTYLES IN THE PHILIPPINES
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2005
2010
2011
2012
2015
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52.7
67.7
72.4
72.9
73.5
74.9
11.1
28.6
37.3
38.0
38.6
39.8
0.2
0.2
0.4
0.4
0.4
0.6
0.1
4.3
10.1
11.8
13.1
16.8
15.5
47.7
79.3
81.8
83.9
88.5
2.0
2.1
2.4
2.4
2.4
2.5
349.6
430.0
455.4
432.2
443.5
479.2
63.6
79.4
86.9
83.0
85.3
92.0
127.1
158.6
170.4
162.2
167.3
181.5
177.4
237.8
278.6
269.8
280.5
311.7
142.5
174.1
183.0
173.4
178.6
191.0
91.8
141.7
199.2
199.0
207.5
233.1
291.3 118.8 20.4 144.8 163.4 18.3
283.9 131.5 24.8 183.6 216.6 20.3
309.5 148.8 26.8 226.3 241.6 26.6
318.1 159.7 28.2 246.2 267.4 29.4
327.0 172.9 29.2 268.9 297.1 32.2
349.4 218.7 32.9 353.1 395.4 41.4
29.4
40.7
40.8
42.8
44.8
49.8
642.3 574.7 202.6 811.7 341.1 134.9
657.8 595.3 208.1 831.4 362.8 138.7
535.4 603.0 200.1 822.8 281.8 112.7
557.3 626.6 204.1 856.5 297.3 120.0
576.9 650.4 207.4 890.6 313.4 127.0
638.2 725.7 216.6 998.5 364.8 149.9
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CONSUMER LIFESTYLES IN THE PHILIPPINES
country - Other outgoing tourist expenditure Departures by mode of transport - Air ('000) - Sea ('000) Demand factors - Annual leave entitlement (days) Source:
Chart 8
Source:
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274.2
262.1
265.4
276.0
306.2
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1,237.6 307.2
1,906.4 451.0
2,989.2 418.9
3,335.1 368.9
3,716.5 336.4
5,156.2 319.2
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National statistics, Euromonitor International
Percentage of Households in Possession of Cable TV; Satellite TV System; Internet Enabled Computer; Mobile Telephone; Video Games Console 20002015
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Private Transport In 2012, per capita consumer expenditure on transport services reached Ps9,259. Since fresh graduates normally get Ps12,000-Ps,15,000 a month for entry-level positions, the average spending on transport services is steep. By 2015, it is forecasted that Filipino commuters will spend an average of Ps10,342. Private transport in the Philippines includes cars, motorcycles, and bicycles. About 27.7% of households have a bicycle, 12.9% of households have a motorcycle and 11.2% of households have a passenger car. By 2015, 30.2% of households a re expected to own a bicycle, 13.1% a motorcycle and 12% a car. In the first half of 2012, 87,226 new vehicles were sold, according to the local industry group of auto manufacturers and distributors. A growth of 20%, from the 7 2,871 units sold during the same period in the previous year. About 28,035 of the units sold were passenger vehicles. The latest industry report has noted brisk sales of Asian utility vehicles, or affordable all-around cars,
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CONSUMER LIFESTYLES IN THE PHILIPPINES
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and of smaller car models. Based on interviews with several auto companies, a recent news report on malaya.com.ph said that 2013 will be the year of small cars, commercial vehicles and hybrids. A news report on interaksyon.com reveals that Download Filipinos canAnd now Print afford to buy brand Cancel new cars because of easier payment terms and the introduction of smaller car models. When choosing their cars, today‘s Filipinos are said to be smarter. ―They consider things like after-sales service and resale value when making their choices. They are constantly updated on reviews of specific models which they also factor in when buying a vehicle,‖ explained a Toyota Philippines spokesperson. Filipinos also consider value-for-money features, such as fuel efficiency, ―vehicle practicality‖, such as parking features, and durability. An Isuzu Philippines representative revealed that the main trend in the coming years is for more practical vehicles, such as subcompact cars and multi-purpose vehicles. Despite the perceived crowded car market in Metro Manila, the car industry still has a lot of room for growth as passenger car ownership is low. Most people in urban and rural areas still rely on public transport to get around, both for personal and business trips.
Public Transport The public transport system and infrastructure in the country, especially in Metro Manila, remains poor. Traffic conditions within the metro have worsened. What is needed is ―an efficient mass transport system,‖ according to a philstar.com columnist. A recent study by the Japan International Cooperation Agency has estimated that the country is losing Ps2.4 billion a day in potential income due to heavy traffic congestion. A senator has filed a bill proposing to institutionalise telecommuting, her solution to the worsening traffic conditions in Metro Manila. The bill also includes the drafting of a ―sustainable transport action plan‖ that will encourage people to walk, cycle an d use public transport systems. ―These may help decongest the traffic of Metro Manila but to a mi nimal level. All ideas mentioned may help but the most significant solution to this problem is anything but de-urbanization of the said place,‖ commented a news site user. ―This is not addressing the traffic issue but avoiding it. Create more mass transport system (trains). Add more roads. Or provide alternative routes. Regulate and monitor big trucks and buses,‖ wrote another. Public transport includes jeepneys, buses, trains, and tricycles. Jeepneys are the main mode of public transportation in Metro Manila and in most towns, both for short- and long-distance travel. Ordinary and air-conditioned buses are used for transportation within Metro Manila and when travelling to other provinces. Meanwhile, tricycles— roofed sidecars bolted to a motorbike or a bicycle—are found everywhere and are essentially used for short trips. ―Tricycles in Manila are normally confined to certain routes, usually around commercial centers or residential villages, and will seldom venture away from their regular beat,‖ said one report. Passenger rail is mostly found in Metro Manila; it includes the Light Rail Transit (Lines 1 and 2) and the Metro Rail Transit (Line 3). These lines are used by people going to work, shuttling between the north and south of the metropolis. The only other railway line i n the country is the Bicol Express, which connects Manila to the Bicol region in the southeast of Luzon.
Commuting The minimum fare using jeepneys is Ps8, Ps12 for buses, Ps10 for the train lines, and Ps8 for tricycles (Ps15 for ‗special‘ trips). Schoolchildren and senior citizens pay discounted fares on all public transport vehicles. In 2012, per capita spending on rail travel amounted t o Ps287.5, against Ps1,541.7 on buses, coaches and taxis. By 2015, it is forecasted that commuters will be spending an average of Ps322.3 on rail travel and Ps1,694.9 on buses, coaches and taxis.
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CONSUMER LIFESTYLES IN THE PHILIPPINES
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There are no established bike lanes along EDSA, the main thoroughfare in Metro Manila, but some portions of the sidewalk have been turned into a bike lane, particularly between the Magallanes and Ayala areas. Under the MMDA‘s system, commuters Cancel bike sharing Download And Print bound for Ayala may alight at Magallanes and use bicycles from there, or the other way around. Marikina City has bike lanes, but cyclists have a difficult time once outside of the city‘s perimeter. The 22-km MRT-7 project and the 12.56-km monorail are among the works planned to expand the public transport system. These systems have been discussed for a long time and residents are fed up with waiting for construction to begin on these lines. The MRT-7 will have 14 stations traversing North Avenue, Elliptical Road, Commonwealth Avenue, Quirino Avenue, and San Jose del Monte in Bulacan and will be connected to the now operational LRT-MRT Closing Loop Interconnection Project. The monorail will connect the Makati Central Business District and Bonifacio Global City to the a irport, easing traffic in the two areas.
Air Travel Budget flights were introduced to Filipinos in 2005, when Cebu Pacific introduced the budget airline concept. The airline was offering fares as low as Ps1, making average fares 30% lower than ten years previously. Other local airlines soon followed and the growing competition in the local aviation industry became a boon to Filipinos‘ wanderlust. The promise of low fares and new destinations prompted thousands to hop from one island to another and explore the Philippines. More Filipinos have been booking flights since, and 2012 was a particularly big year for budget carriers like Cebu Pacific, PAL Express, AirAsia and Zest Air. Between January and September, they were used by almost 80% of the domestic market‘s 15.5 mil lion passengers and about 30% of the international market‘s 12.5 million. The most common destinations are Boracay, the country‘s most famous white sandy beach; Siargao, an internationally-acclaimed haven for surfers; and Coron, which appeals to nature-loving travellers. Despite the popularity of budget carriers in the Philippines, average consumer expenditure on air travel remained very low at Ps270.50 per capita in 2012. It is projected to increase only slightly to Ps300 by 2015. Budget airlines have often been criticised for delayed flights and lost baggage. Most passengers do nothing about it, believing that there is little to expect from cheap airfares. To protect travellers from perceived abusive practices, the government implemented the Passenger Bill of Rights in December 2012. It sets guidelines on overbooking, rebooking, refunds, cancelled and delayed flights, lost luggage and misleading advertisements on fares -the top passenger complaints in 2011. Growing appetite for expensive cars While middle-class Filipinos have been reported to prefer practical cars, the country‘s rich are keen to expand their portfolios of European cars. Before British luxury vehicle brand Rolls Royce opened a local dealership in 2013, wealthier Filipinos were known to buy European car brands, such as Mercedes-Benz, BMW, Volvo, Audi, Porsche, Lexus, Ferrari, Lamborghini and Maserati. The local Rolls-Royce dealer has stated that prominent businessmen, including Manuel Pangilinan, have expressed an interest in acquiring Rol ls-Royce cars. The first buyer of a Rolls-Royce is self-made TV personality Willie Revillame, who has been known to have a penchant for expensive vehicles. Between 2,000 and 3,000 luxury vehicles are bought in the Philippines each year. Table 9
Transport Data 2000, 2005, 2010, 2011, 2012, 2015 2000
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