Despite higher prices, 30% of Pinoys willing to spend on luxury items — survey

Despite the burden of higher prices of oil and power, about a third of Filipino consumers is still prepared to spend for luxury items such as new clothes, cellular phones, DVD players and digital cameras.

Based on a survey conducted by ACNielsen, a global market research firm, three out of every 10 Filipinos feel that "it is the best time to buy things they need."

The survey, which was global in scale, was conducted between the periods April 11 to May 10, 2005.

In the Philippines, 501 responded to the survey of which 70 percent were based in Metro Manila.

Majority of the respondents were professionals, students and housewives aged 18 years old and above. All social classes from A to C were represented in the survey.

ACNielsen Philippines managing director Esther J. Capistrano said the highest concern of the respondents was the economy, especially employment and health. In contrast, the least of their concerns were crime and war.

Capistrano said the Philippine profile or index was very close to the Asia Pacific average in most concerns. It is slightly higher than the global consumer confidence average index of 92 percent.

"Looking forward to the coming 12 months, the Philippines is in the middle of the scale, neither upbeat nor very pessimistic, which has been that case in the previous six months," she added.

That is also the biggest challenge for the Philippines since its position is "shaky" and the Philippine consumer could become very pessimistic or optimistic.

Meanwhile, the survey revealed that 63 percent of the respondents placed their money in savings, but only seven percent set aside funds for retirement. A mere 12 percent were investing in the equity or stockmarket and mutual funds.

Yet 30 percent spent on new clothes, 25 percent on new technology, 21 percent on entertainment, and 24 percent on spending for holidays and vacation.

Forty-three percent spent on paying loans and debit or credit cards.

The global survey meanwhile showed that businesses continue to invest in advertising as part of their marketing efforts.

The top 10 advertising spending categories were communications and telecommunications, shampoo, rinses and treatment products, detergents and laundry preparations, proprietary drugs and other vitamins, other food products, skin care, powder milk, entertainment, government agencies and public utilities, and dentifrices, mouthwash and toothbrush.

The global survey covered 21, 261 respondents over the Internet in 38 countries. In the Asia Pacific region, 7,034 consumers responded from 13 markets.

Likewise, the Asia Pacific region is the most optimistic in terms of overall consumer confidence compared to Latin America, Europe and the United States.