By Brontë H. Lacsamana, Reporter
CONTINUOUSLY monitoring the needs and wants of consumers, especially in uncertain times, is vital for brands to innovate and sustain their business, according to a market research expert.
Brands exist because of the customers who remain loyal to their products or services, so growing a business is basically “a race towards providing solutions to customers’ latest problems,” said Germaine A. Reyes, president and chief executive officer of Synergy Market Research and Strategic Consultancy, in an interview.
“Consumer purchase decisions are very much affected by what’s happening around us, the macroeconomic factors,” she told BusinessWorld. “That’s why we really need to stay tuned to how the needs and wants of consumers are evolving.”
The economy grew by 6.4% in the first quarter of 2023, the slowest pace in two years, as high inflation and rising interest rates dampened consumer spending, according to a report by the Philippine Statistics Authority in May. With tight monetary conditions, high prices have resulted in low consumer demand.
In light of this slowdown, brands must fine-tune their business strategies to avoid being tone-deaf to the plight of the average Filipino, according to Ms. Reyes.
Here are the adjustments that brands can make to their content based on the 2023 study titled “Finding Certainty in Uncertainties: Consumer Insights and Trends for Brand Growth” by Synergy in partnership with YouGov, an international research and data analytics company.
PRICING AND PACKAGESNine out of 10 Filipinos are struggling to meet their basic needs, according to the study.
Ms. Reyes said that one crucial aspect sought by consumers is affordability when it comes to brand offerings. This does not necessarily entail reducing product sizes but rather exploring strategies to enhance their value.
“That doesn’t mean that it’s the cheapest available,” she said. “It’s just an opportunity for brands to innovate their offerings.”
Whether it is providing product iterations at different price points or bundling different products together in a package, brands can develop numerous solutions to make purchases worthwhile.
The study also showed that consumers exhibit a heightened focus on investment and savings, while maintaining a positive outlook. Additionally, they are adept at recognizing price increases across various categories. “[Brands] have a role to play in spurring consumer spending in the Philippines — by not just increasing prices right away,” Ms. Reyes added.
STRONG STANCE ON ISSUESFilipino consumers are highly conscious and have greater expectations from brands and their marketing efforts, according to the study by Synergy and YouGov.
One aspect is sustainability, where businesses are expected to embrace environmentally friendly practices encompassing supply chain processes and internal operations. Another significant aspect is diversity, equity, and inclusion or DEI.
“Companies can conduct the necessary workshops, from the management down to the ground-level employees, so they’re more aware of these issues,” said Ms. Reyes.
The study also found that less than 20% of Filipino consumers feel they are adequately represented in advertising. More than a third disagree that they are even represented at all.
On the flip side, the lack of diverse representation leaves open “a wide playing field.”
Ms. Reyes recommended that businesses consider various markets: “So much representation can be done, from gender equality and women’s empowerment to PWD (persons with disabilities) and senior inclusion.”
HEALTH AND WELLNESSAside from physical health being a major concern arising from the pandemic, there is a significant global prevalence of individuals facing mental health issues.
According to the market study, around six or seven out of 10 Filipinos have experienced psychological distress since the onset of the pandemic.
“Brands must bear in mind that empowering messages can help alleviate distress,” said Ms. Reyes.
Specifically, younger consumers tend to struggle in finding outlets for their mental well-being. Therefore, businesses can play a role in engaging and attracting Generation Z by incorporating mentally alleviating activities and branding initiatives, she also said.
“Ideas that emerged from previous webinars included providing moments of entertainment through innovative packaging and fostering family bonding to create a support system.”
BRAND HEROESAccording to Synergy’s research, social media remains the top channel for capturing consumers’ attention.
However, beyond that, influencers have become essential for brands.
“Gen Zs are in search of heroes, and influencers essentially serve as their heroes when it comes to discovering products, gaining knowledge, and finding entertainment,” said Ms. Reyes.
This trend is particularly evident on TikTok, the widely successful short video app, which offers entertainment, educational content, and even shopping experiences.
“It’s a platform for recreation, education, and discovering new things, such as products and ideas,” she said.
Brands, she also said, must recognize that social media serves multiple purposes for tech-savvy consumers. Only then can they develop more effective marketing strategies.
ARTIFICIAL INTELLIGENCEMs. Reyes also noted that technology is continuously evolving, much like consumer trends. This parallel development makes it appropriate to utilize technology to adapt to changing consumer preferences.
Artificial intelligence (AI) is a timely example, although it has been around for some time, she said.
“It’s only recently that AI-related brands have become more popular, and it’s because of ChatGPT, which actually leapfrogged everyone else in terms of awareness, usage, future use, and interest,” she noted.
The market study found that there is real interest in the technology across generations, from Gen Zs who use AI for their studies to millennials who use it for work purposes.
Still, it is too early to tell how lucrative AI-related innovations could be on a large scale, with public opinion split on the matter — from those who believe it is transformational to those who oppose it for promoting a lack of creativity, according to Ms. Reyes.
She added that keeping abreast of more consumer studies in the coming years will help brands and businesses in gaining a deeper understanding of this matter over time.