Outdoor activities like dining out and shopping peak during the Holiday season. And even though more people are now able to go out, there still are many challenges that may affect the appetite of consumers to spend during the Holidays.
In an exclusive webinar provided by Araneta City to its lessees last September 15, the trends and factors that shape consumer attitudes this Christmas season were discussed.
The guest speaker of the webinar, Kantar’s Shopper Insights Director Laurice Obana, identified the factors dampening the spending attitude of Filipinos such as the increasing price of gasoline and other petroleum products, sagging consumer confidence, and the atmospheric inflation seen in the past few months.
“This is going to be a more positive Christmas, but it wouldn’t be fully bongga, because there are very real factors holding us back,” Obana adds.
She further elaborated that the pressure of these factors are being felt across all socio-economic classes. Consumers in upper to middle class have seen a sharp decrease in income, while those in the lower socio-economic brackets are feeling the pinch because of skyrocketing prices.
Obana said that given these factors, it is important for retailers to understand where the money of ordinary Filipino shoppers goes. Based on Kantar data, most of the consumers’ budget goes to the essentials, with food being a top item on the list. Second is preventive healthcare like vitamins, medications, and healthy practices such as exercise. Third, Filipinos have a growing propensity to spend on insurance, savings, and investments.
Lastly, Pinoys are now starting to allocate money for recreation and travel. This is primarily driven by the idea of revenge travel given that a lot of people were unable to go to other destinations because of border restrictions.
With these in mind, Obana highlighted some ideas that can help retailers stand out amid the expected holiday rush. She stressed the need to deliver and communicate value, that it’s important for consumers to know and understand that retailers can deliver on either quality or quantity at a price that they deem reasonable. Consumers today also know that their physical, emotional, and mental health matter, so retailers must put more value on products or services that promote holistic well-being.
On the other hand, products that are meant for travel, recreation, and celebrations are postulated to be attractive to today’s consumers. So clothes, shoes, and bags will be some of this holiday’s hottest items. Other products that also fall under this category will also hold resonance for consumers. And of course, food items will continue to be a priority for consumers who will undoubtedly make the necessary budgetary accommodations to ensure that food is on the table for the Holidays.
Another important reminder that Obana mentioned was that consumers nowadays are in constant search for convenience, and here is where online options or delivery offerings come in. She added that ensuring that people can see retailers offering more value to their customers may attract more store visits.
“We need to consistently drive value, because people will still spend. It’s non-negotiable. We need to buy goods. But people will be more thorough, more conscious of how they spend. Between you and the competitor or other options, you will stand out if you’re able to deliver value to your shopper or your consumer. It is on us as business people, as the ones who are selling these goods, to make sure that we deliver on value,” Obana told the Araneta City lessees.
Meanwhile, Marjorie Go, Araneta City’s Assistant Vice President for Marketing, presented in the webinar the comprehensive plan of the City of Firsts for Christmas 2022. The City of Firsts will be celebrating the holidays with the theme “Christmas Like No Other” through sales, promos, and other exciting activities.
“I think the mall is a good place to unwind, to bond with your family and friends, to see them again, to eat out, to shop. The malling experience is different. It’s not only about shopping, it’s also about bonding. We, at Araneta City, try to make the experience of our customer better and different. That’s always our challenge here at the City of Firsts,” Go said.