‘Rural dev’t to boost consumption in Viz-Min’


RURAL development is opening up opportunities for marketers to boost the consumption of fast-moving consumer goods (FMCG) in the Visayas and Mindanao, consumer behavior expert Kantar Worldpanel said.

“Rural development can continue the uptrend that we are seeing for Visayas and Mindanao,” Kantar Worldpanel Account Director Ruth Sazon said on Thursday.

Over 40 percent of the country’s households live in the Visayas and Mindanao (Vis-Min), building the case for marketers to focus on those areas.

Milk, gum, fruits and vegetables, toilet paper, soda, beer and over-the-counter drugs like aspirin are FMCGs that sell quickly at relatively low costs.

The Visayas and Mindanao account for 42 percent of the country’s total FMCG spending, outperforming Luzon (3.9 percent) and total Philippines (4.4 percent) in 2014 to 2016.

“So if the economic platform is to grow the rural areas, then most that is going to impact Vis-Min similar to what happened to Central and South Luzon when past administrations focused their policies in those areas,” Sazon noted.

“Going forward, we can expect Viz-Min to outperform South and Central Luzon in terms of FMCG growth,” she said.

Kantar Worldpanel research showed that purchasing habits and values in the Vis-Min market are unique.

Vis-Min households spend over half of their FMCG budget on food (50.6 percent) and almost a quarter (23.6 percent) on beverages which differ from the 53.1 percent on food and 19.1 percent on beverages in Luzon.

They also spend 17 percent on personal care products and the least 8.7 percent for household care items.

Sazon said there is great potential for certain products to further grow in Visayas and Mindanao. FMCG categories such as yoghurt drinks, oyster sauce and hair treatments registered the highest growth at over 60 percent each.

In addition, Sazon said that Vis-Min households have a strong affinity with local brands.

“Brands have a tendency to focus on the spending power in Luzon, particularly Metro Manila. However, our data shows that brands should not set aside the many opportunities that Visayas and Mindanao offer,” she said.

“There is so much potential in these areas. Rewarding results await brands that are successful in reaching out and tapping Vis-Min households,” she added.


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