Demand for various big ticket household electronics and appliances surged significantly in the Philippines last year. According to recent findings by GfK, 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 USD 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 strategise and generate the maximum return on investment from their portfolio.”
GfK’s Point of Sales (POS) Tracking experts keep customers fully updated on the retail and technical consumer goods products that are selling; including details on where, when and at what price, while tracking market share and brand performance to benchmark against the competition.
Using POS Tracking data, GfK’s POS Analytics evaluate the sales impact and Return on Investment (RoI) of our clients’ sales and marketing activities. Using advanced econometric modelling techniques and leveraging GfK’s rich tracking data assets we put clients in a position to simulate the outcome of their sales and marketing plans.
About GfK
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.
For more information, please visit www.gfk.com or follow GfK on Twitter: https://twitter.com/GfK
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