Confident PH consumers ready for retail therapy
Eager to emerge from the pandemic, Filipino consumers were eager to spend more on retail purchases and “big” items such as cars and appliances in the hope that they would earn more over the next year, according to a new investigation.
Data from the First Quarter 2022 Consumer Pulse Study by news firm TransUnion revealed a shift in spending priorities as the Philippine economy reopened earlier this year.
“From optimism about improving household incomes to projected increases in spending in key areas, Filipinos are increasingly optimistic about our recovery from the global pandemic,” said Pia Arellano, President. and CEO of TransUnion Philippines, in a statement.
The study showed that more Filipinos (36%) saw their household income improve over the past three months, while 75% expected it to increase further in the past three months. of the next 12 months.
As a result, fewer respondents (45% vs. 52% last year) reduced their discretionary spending (dining, travel and entertainment) while 16% (up 5 percentage points) added subscriptions to subscriptions.
More telling was the pattern of household spending over the next three months as more non-essential purchases are made.
“More respondents said they would increase their spending on retail purchases, discretionary personal spending, retirement funds and major purchases,” the study said, adding that each of the categories saw a 5-point increase. compared to the first quarter of 2021.
According to the study, a growing number of young Filipino consumers also expect to pay for their new purchases on credit.
Of nearly half of respondents who plan to apply for a loan in the next year (46%), half of them are younger generation Filipinos (50%), Gen Z.
TransUnion added that more than half (57%) of those with a credit score between 750 and 789 (considered a “very good” score) said they plan to apply for new credit.
The study also noted an increase in online fraud as more Filipinos shifted their transactions to online platforms.
The most common schemes were phishing (42%), cash/gift cards (38%), third-party seller scams on legitimate online retail websites (30%), collection funds (25%), identity theft (23%) and supported account (22%).
TransUnion surveyed 1,078 adults in the Philippines across all major age groups.
“By conducting this study quarterly and making the results public, TransUnion Philippines leverages the information and insights to provide a comprehensive understanding of changing attitudes and circumstances in the country,” Arellano said.
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