Christmas is usually the best time of the year for retailiers in the Philippines. In the spirit of giving, Filipinos don't shy away from buying gifts for loved ones, home décor, and groceries for big feasts. But that was before COVID-19.
With many Filipinos unemployed, this year's Christmas might be gloomier than the last as 52 percent of Filipinos surveyed by Finder plan to spend less this holiday season.
Of the 2,018 respondents in Finder's poll, 22 percent said they would cut spending by 50 percent or more this year.
Finder estimates retail could lose P95 billion in potential revenues from Christmas shopping. With reduced consumer spending due to COVID-19, this could limit the income of retail this holiday season and slow down the industry comeback everyone is waiting for.
Ten countries were surveyed in Finder's research, and the Philippines had the second-highest percentage of people planning to cut costs. South Africa led the survey with 56 percent, and Hong Kong and India followed the Philippines with 47 percent each. Even the U.S. reported less Christmas spending with 40 percent planning to stick to a tighter budget.
"The 'ber' months have come which means Christmas has already started in the Philippines... Planning ahead can save you big bucks and reduce stress, especially if you spread the cost over a number of months rather than holding out until December," said Susannah Binsted, money specialist at Finder.
Binsted suggests taking advantage of the sale events Lazada and Shopee are famous for, particularly the upcoming 10.10 day, 11.11 day, and 12.12 day sales.
Taking advantage of the consumer shift to online shopping is crucial for retailers, especially if quarantines are extended all the way to Christmas.