Spending on gadgets to decrease this year

Consumer spending on technology-related products such as computers, software and communications products, is expected to drop this year.

Based on the recent Forrester Research, it stated that global business and government spending on computers, software and communications products and consulting services is expected to decline three percent this year marking the first decline since 2002, when information-technology spending dropped six percent after falling the same amount in 2001 due to the dot com bubble.

 Meanwhile, Cebu-based technology vendors collectively lamented a detection of slowdown of sales as consumer spending is starting to drop.

Junrex Cellphones and Accessories Inc. president Jun Yap said that since the last quarter of last year, they have started to experience more than 30 percent reduction of sales.

He said that although some economists say that recession has not yet affected the country, but already consumer spending has started to slow down.

“The confidence level of consumers have been affected with this crisis because most of them are afraid of what is really going to happen this year. This is aggravated by the news of closures of some companies, massive lay-offs of workers which intensifies people’s anxiety,” said Yap.

He said that Filipinos always want to be updated with the latest technology so the volume is still there, however; consumers are now getting more conscious with their buying decisions.

“They usually think hard before they purchase and look for more value of their money. They buy what is needed now,” Yap added.

But looking at a brighter side, Yap said that technology now a days had also become cheaper as manufacturers have succumbed to meet the shrinking disposable income of consumers.

Joevi L. Luspo, Visayas regional manager of Canon Marketing Philippines, Inc. on the other hand said that their firm continues to be “cautiously optimistic” despite the foreseen possibility of contraction in consumer spending.

“We have to be optimistic all the time but we have to be cautious of the movements in the market. There is always opportunity in every crisis and you just have to dig in to find this,” he said.

He reported that since the month of November and December, they haven’t experienced contraction of their products but instead they have grown 31 percent in their Cebu sales for the entire 2008 fiscal year.

Luspo said that for this year, they target to top their sales last year and so far their target remains on tract.

“In the long run, we still do not know as to what extent the damage of the financial crisis will cause us but we continue to be hopeful that it will not take effect in Cebu which is expected to remain resilient and come out better compared to other provinces,” said Luspo.

Although they expect a decline of consumer spending, Luspo is still confident that the market can still grow although not as big as what was expected before.

“We should capitalize on the slowdown and plan our way out. Be proactive as you can and reactive if your plans will not work. At this point, we have to come up with workable plans ahead to properly react to certain situations in the market,” he stressed.