MANILA – Kantar Worldpanel data reveals that millennials, or those born between 1980 and 2000, contributed Php181 billion to FMCG (fast moving consumer goods) sales in the Philippines for the year ending March 2016. This figure accounts for over a quarter (27 percent) of total FMCG purchases in the country, with millennials now a very significant and noteworthy source of growth among FMCG brands.
According to Kantar Worldpanel’s Diwa Manila, Kantar Worldpanel Account Director, a significant number of local households (80 percent) have millennial members. Twenty-seven percent of Filipino households are also currently headed by ‘millennial moms’. To better understand the millennial or Generation Y shopper, Kantar Worldpanel shares key insights on how brands can get their products into the millennial shopping basket.
Sachet is the way.
Data from Kantar Worldpanel show that millennials have an affinity with products in smaller packs. This trend is evident across all megasectors, particularly for hair care, mini-deodorant in roll on, stick or lotion form and diapers in single or small packs (personal care); sandwich spread, vinegar, soy sauce and powder juice sachets (food and beverage); and powder detergent sachets (home care).
Focus on traditional trade channels, explore e-commerce.
According to Kantar Worldpanel, majority of millennials go to traditional trade channels such as sari-sari stores, market stalls and groceries when shopping for their FMCG needs. More than half (53 percent) of this market segment prefer the sari-sari stores and market stalls over hyper supermarkets (28 percent), and drug stores (6 percent).
Still, millennials are also very open to other channels, including e-commerce. This does not come as a surprise with millennials spending on average, almost six (6) hours a day online1.
Manila that convenience and speed are paramount when targeting Gen Y. “Millennials maximize the Internet not just to shop, but also to research about products, look for bargains and discounts, and connect with brands and other consumers,” she added.
Focus on budget-conscious shoppers
While looking for quality products, Kantar Worldpanel data show that milliennials are also conscious of their budgets. They are attracted to lower-priced brands, mostly when buying powder detergents, dish washing products, diapers and even ketchup. Moreover, they are on the lookout for canned goods that are cheaper like in the processed meat and condensed milk product lines.
Go the extra mile.
Interestingly, millennials go out of their comfort zones even in their FMCG purchases. According to Kantar Worldpanel, millennials are open to purchasing products in advanced formats or trying those that offer new benefits. For example, millennials purchase shampoos that target damaged hair or face cleansers and moisturizers that also lighten skin. They are also eager to try products with advanced features such as toothpaste in gel format and super-sensorial fabric conditioners.
“The purchasing power of the millennial generation will continue to increase in the coming years. Currently responsible for over one fourth of sales in the FMCG sector, it is critical for marketers to pay attention to this unique demographic. For some brands or products, getting into and staying in the millennials’ shopping basket could spell the difference between failure and success,” Manila said.
1 Kantar TNS Connected Life Study (http://connectedlife.tnsglobal.com)