MANILA, September 5, 2013 – Marketers and advertisers should get to know the rural market—this was the recommendation given by Luzviminda Barra, commercial director of Kantar Worldpanel, at the Consumer Connection 2013 media briefing Thursday.
“The rural sector includes 9.59 million homes, which represent 49% of all the households nationwide. They have contributed a total of P246 billion worth of FMCG (fast moving consumer goods) in-home purchases over the past five years,” Barra said.
At the event, Kantar, a consumer research company, explained that the rural sector is growing faster than the urban sector in terms of spending. According to their data, since 2009, rural spending per household has increased by 4 %, while urban spending per household has increased by only 2%.
Their data also revealed that the rural market’s spending has overtaken that of the urban market in terms of beauty products—for instance, they noted 19% increase in hair conditioner spending from the rural sector, as opposed to the 9% increase from the urban sector.
Kantar also revealed that more and more rural buyers are turning from the sari-sari stores and public markets and running to modern trade channels—hypermarkets, supermarkets, drug stores, department stores, online shops—to purchase goods. Kantar’s data showed a 9% increase in modern channel spending and only a 3% increase in traditional channel spending among rural buyers.
Kantar also listed the top amenities inside a rural home. Electricity, prepaid cellphones, and TVs ranked as the top three, with over 80% of homes having access to them. Other amenities include VCD/DVD players, running water, bathrooms, refrigerators, washing machines. Digital cameras, and cable subscriptions were also included in the top ten, though only 10% of rural households had access to them.
