Demand for various big-ticket household electronics and appliances surged significantly in the Philippines last year, according to a recent finding by consumer research firm GfK.
The study showed that flat screen TVs, refrigerators, air conditioners, and washing machines garnered the highest share of Filipinos’ wallets when it comes to spending in this category of household products.
In January to December of 2016, 12.8-percent more TV sets were snapped up in the Philippines compared to the previous year, translating to a 12.9-percent corresponding growth in dollar value of the market.
With this double-digit sales growth, TV continues to be one of the key technical consumer goods tracked by GfK which consumers in the country spend most on, totaling over $595 million.
“Greater access and affordability were the possible contributors to the strong growth of this consumer electronics product,” said Stanley Kee, managing director for Southeast Asia, GfK.
“The declining prices of TVs are making it more attractive and attainable, especially for the more expensive big screen sized models.”
Across the other major household electronics and appliances, refrigerators registered the second highest growth, registering 9.8 and 8.2 percent more sales value and volume respectively over the previous year.
Washing machines were also high in demand, at 14.2 and 9.2 percent value and volume growth compared to 2015.
Despite a challenging global economic environment, the Philippine economy has grown at a rapid pace over the past five years, supported by sound macroeconomic fundamentals and a highly competitive workforce, which has increased economic optimism among the Filipinos.
According to the Philippine Statistics Authority (PSA), the Philippine economy grew by 6.8 percent in 2016 — the fastest growth in the last three years — largely due to the increase in domestic demand, particularly in terms of investment and consumption.
“GfK’s analytics studies based on our robust Point of Sales tracking data have shown that product life cycles are getting shorter as new models are being introduced at a faster rate, thus impacting the potential for increased sales opportunities,” noted Kee.
“This, combined with the long repurchase cycle for consumers means that brands now have a shorter window to effectively communicate and market their products. This is where insights correlating sales performance and marketing mix effectiveness can help brands strategize and generate the maximum return on investment from their portfolio.”