Retail industry is a huge industry since it is a special sector that is always needed by the citizens of every single country. However, to understand the Philippine retail industry outlook, it is crucial to learn about the Philippine’s consumer spending trend.
The pandemic affected almost everything not only in the Philippines but also in the other countries of the world. The trend of consumer spending has changed since the pandemic forced people to stay at home and save more money because of losing jobs. Learn about this and you’ll understand the market.
Changes in Consumer Spending in Philippines
The Philippines household spending will fully recover from the recession impact that is caused by the pandemic. The recovery is expected to get better in the next year. This expectation is supported by the consumer confidence that is getting improved during the 2021.
A report said that the household spending can rise by 5.1%, which is faster than the projected 3.5% in 2021 after the significant contraction because of COVID last year. The growth of consumer spending started recovering in 2021.
Unfortunately, the growth was weighed down significantly COVID cases’ third and fourth waves in the country. Over 2022, the growth of consumer spending will start to moderate since the consumers continue the recovery from the contract.
Philippine Retail Industry Outlook in 2022
The full recovery in the retail and consumer sector of the Philippines is expected to take place by the year of 2022. It is expected with conventional growth that returns in 2023. In the past two years, retail in the Philippines has been in a major slump with the pandemic accelerated the restructuring.
Some department stores with big names and small retailers around the world filed for bankruptcy. While the pandemic’s damage to various industries is undeniable, the retailers, fast moving consumer goods, grocery chains, and home goods retailers actually benefited from the COVID.
This is the response to the new purchasing trends that were helped by the consumers who loved to spend their loose money on various things. The firms of private equity looked to invest in specific businesses that focused on outdoor sports and activities as well as consumer retails.
The Pandemic Hit Hard the Apparel Sectors
The apparel sector is the most suffering business sector, especially the formal wear sector. This is because no formal events are now conducted online and don’t require new formal attires. Unfortunately, the everyday-wear brands are also suffering.
Some apparel businesses were required by the investors that are specializing in branding. This is going to enhance the marketing and also engagement with the online consumers in order to grow ecommerce and launch brand new collaborations.
When you are looking at the opportunities for acquisitions and mergers in retail, it is important to perform due diligence to better understand the potential and current state of business.
Various industry sectors have been affected by the pandemic. However, the Philippine retail industry outlook in several sectors is great. Learn about the consumer spending trends in the Philippines first before you start expanding to the country.