Home-based lifestyle drives shift in consumption — Nielsen

PHILIPPINE consumption of fast-moving consumer goods has shifted to suit a home-based lifestyle, a report from Nielsen Holdings PLC said.

“‘Do-it-yourself’ (DIY) behaviors and demand for in-home branded experiences have persisted even beyond living restrictions and store re-openings in many Southeast Asian markets,” the data measurement firm said in a press release on Tuesday.

Around a quarter or 24% of Philippine consumers switched to pack sizes, which Nielsen said suggests that they are seeking goods that suit a homebound lifestyle.

Southeast Asian consumers are also buying more food and dairy, including those in the Philippines with an 11.4% increase.

“Companies have the opportunity to seize that interest and respond with affordable, accessible and branded take-home experiences,” Nielsen Intelligence Unit Head Scott McKenzie said.

In the report COVID-19 Behavioral Reset, Nielsen said interest in DIY activities has remained, even though global restrictions are starting to be lifted.

“Global measures confirm that many homebound routines are here to stay, and this facet of consumer reset is transforming behaviors in a big way,” the report said.

Consumers whose incomes declined due to the pandemic have been cost-saving and avoiding exposure to the virus by fulfilling their needs through key consumer goods.

For those whose incomes did not change, staying at home has allowed for more “creative exploration” as they try new products.

Nielsen said that the news cycle on the transmission of COVID-19 no longer influences the market for fast-moving consumer goods (FMCG) in Southeast Asia. Instead, socio-economic and behavioral patterns are influencing the industry.

Consumers, Nielsen said, will reprioritize what they will buy, with declines in alcohol, healthcare, personal care, and beverages.

“Stockpiling behavior hasn’t persisted to the extent of March and April, reflecting the lack of correlation we had previously seen between news stories on the rates of virus transmission and FMCG sales spikes,” it said.

Nielsen said that buyers are also turning to consumer goods to fill gaps in entertainment and travel experiences. Consumers are also looking for more affordable goods, prioritizing products that have quality and value.

More than half of constrained spenders, or those whose incomes fell due to COVID-19, started shopping at a new store during the time they were surveyed in May. In contrast, 33% of spenders whose incomes did not change did the same.

The main reasons constrained spenders shift stores were the number of sales promotions, the closure of the old stores, and a lack of stocks.

Among constrained spenders who are working from home, 44% added DIY activities to their routine, while 33% of insulated spenders did the same. — Jenina P. Ibanez





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