Filipinos splurged on household appliances last year, snapping up television sets, refrigerators, air conditioners and washing machines, according to market research expert GfK.
From January to December 2016, 12.8 percent more TV sets were purchased compared to the previous year, translating to a 12.9 percent corresponding growth in dollar value of the market.
With the double-digit sales growth, TV continues to be one of the key technical consumer goods tracked by GfK. Last year, Filipinos spent $595 million on TV sets.
“Greater access and affordability were the possible contributors to the strong growth of this consumer electronics product,” GfK Managing Director for Southeast Asia Stanley Kee said.
“The declining prices of TVs are making it more attractive and attainable, especially for the more expensive big screen sized models,” he added.
Next to TV, refrigerators registered the second highest growth, recording 9.8 and 8.2 percent more sales value and volume respectively in the previous year.
Washing machines were also in demand at 14.2 and 9.2 percent value and volume growth compared to 2015.
According to the Philippine Statistics Authority (PSA), the Philippine economy grew by 6.8 percent in 2016, the fastest 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,” Kee said.
“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 strategise and generate the maximum return on investment from their portfolio,” he added.