Magazines Archives - 2009 October

Retail companies adopt creative measures to woo customers
Story 6 - Focus

The consensus is clear: Filipino consumers are not as battered by the global economic crisis as their
counterparts in the US, Europe or Japan thanks primarily to the continued inflow of remittances from overseas Filipino workers (OFWs).

With OFW remittances hitting US$9.97 billion in the first seven months, up 3.8% from the same period last year, Filipinos — most of whom have a relative sending money from abroad — are still
in the mood to spend, albeit at a more restrained pace compared to as recently as 2007 when the global economy was growing at a fast clip.

It also helps that Filipinos are used to adapting to changing economic conditions because they are no strangers to crises, according to the Trading Up/ Trading Down study released last June by advertising firm BBDO Guerrero/ Proximity Philippines.

The same study, however, noted that the crisis, which inevitably affected the Philippines as it relies heavily on the US for trade and investments, had caused Filipinos to be more prudent or deliberate in their purchases. Plus, they had also begun to spend more time looking for the best deals before letting go of their cash.

Such changes in consumer behaviour have put extra pressure on retail companies to be more creative, efficient and more attuned to the wants and needs of their consumers so as to secure a portion
of their disposable pesos.

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