Savvy, Shrewd Spending
In 2023, inflation surged as the world reopened, but by 2024, it stabilized. This rekindled Filipinos' eagerness to spend—albeit cautiously, as the peso remains weak.
How are Filipinos being savvy and shrewd with their spending?
- Needs Over Wants: Becoming more practical, they prioritize paying for loans and bills vs. lifestyle buys.
- Promo Hunting: 77% of GCash users actively seek the best deals among various brands before making a purchase.
- Online Shopping Expertise: With the majority of online sales influenced by promos and discounts, Filipinos have become highly skilled in finding great deals online prior to purchase.
When it comes to spending extra, Filipinos are selective, prioritizing causes that align with their values. A remarkable 97% are willing to pay more for sustainable brands, reflecting a deeper focus on brand ethics and sustainability.
Spending for the Body and Soul
Even in the face of financial challenges, Filipino consumers are unwilling to sacrifice their well-being. With 89% recognizing the importance of self-care, they continue to allocate budget for their physical and psychological needs.
How are Filipinos investing in themselves?
- Digital Content: For as low as ₱300 per month, families enjoy access to digital content, which provides cost-effective relaxation.
- Retail Therapy: Online shopping remains a source of happiness, with 58% shopping online more frequently than five years ago.
- Dining Out: Even though budgets have become tighter, people still dine out as often as they used to, though they now spend less per visit.
From medication and entertainment to retail therapy and dining out, these activities form part of Filipinos’ self-care routines and are carefully factored into monthly budgets.
Setting Up Against Uncertainty
Filipinos remain cautious, prioritizing financial safeguards to prepare themselves for emergencies and avoid being caught off guard as they were during the pandemic.
What steps are Filipinos taking to stay financially ready?
- Solid Savings: Higher interest rates have drawn Filipinos to digital banks, with 5.9 million depositors by the end of 2023. They have the vision to set aside funds, whether to pave the way towards a better tomorrow or as a cushion for emergencies.
- Affordable Insurance: Insurance purchases through GCash grew by 72% year-on-year in 2024, thanks to sachet-style offerings that make it accessible. We can expect more Filipinos to explore insurance, since it softens the financial impact of any crisis.
- Leaning On Loans: Filipinos are embracing credit as a financial lifeline during challenging times, as reflected in the 139% year-on-year growth of GCash loan products in 2024. Whether for small necessities, coveted gadgets, or capital for small businesses, credit has become a key resource.
Considering the new state of spending, your brand can’t afford to get left behind if you’re unable to adapt. Leverage these learnings and ask us how GCash For Business: Partner Solutions can also help you thrive. Through Ad Solutions, Promo Solutions, and even Green Solutions, GCash for Business: Partner Solutions is your partner in helping your business grow. Email us at partnersolutions@gcash.com for more information.
