A decline in the country’s tech sales has been recorded during the last quarter of 2013 as the Philippines has been hailed “Asia’s 2nd most Optimistic Consumers” in the recently conducted Nielsen Consumer Confidence Index despite the devastating aftermath of Typhoon Yolanda, leaving many dead and homeless in the Central Philippine Region.
In the said study conducted between November 11 – 29, 2013, a result of above 100 denotes consumer optimism, while anything below 100 indicates a pessimistic behavior. Indonesia got a consumer index of 124 during Q4, while the Philippines came second with 114 — still an impressive number because it was then when typhoon Yolanda struck the Country. “As expected the sentiment of Filipino consumers went down as a result of the devastation of typhoon Yolanda,” according to Nielsen Philippines Managing Director Stuart Jamieson. “As a consequence, they are examining their personal finances closely and are becoming more cautiously optimistic and dynamic in their choices around spending and saving.”
In detail, Filipino respondents showed a 1% decrease in the perception of personal finances in the 4th quarter, compared to Q3’s 77%. On the other hand, there was an increase of 1% in terms of the respondents being able to save excess cash during the last quarter of the year, compared to the 67% Q3 got. A 3% increase was also noted for intentions of spending extra cash for vacations, compared to the previous quarter’s 45%.
Furthermore, 85% of Filipino respondents claimed that they have changed their behavior on spending, and redirect it to save on household expenses–an increase compared to the 80% Q3 got–a clear implication that most Filipinos decided not to spend too much money on new gadgets, and went more practical. This isn’t really good news for the tech market, at least for sales. Q4 in the country last year is when the iPhone 5s/5C, iPad Air, iPad Mini with Retina Display and other anticipated releases came, and is the time of the year when gadgets and electronic sales are expected to skyrocket just in time for the holidays.
Jamieson concluded that “While consumers are optimistic about their future they remain cautious with their spending behavior…What we are seeing is a propensity to adapt quickly and decisively shift spending when required.”
On a side note, Filipinos are now included in the world’s top 10 biggest savers–a list which includes Vietnam (74%), Indonesia (72%), Hong Kong (71%), Taiwan (67%), Thailand (66%), Singapore (64%), Malaysia (63%), India and Japan (62%). [via]