Pinoys find ways to cope with rising prices – study

MANILA, Philippines — Sari-sari stores in the country saw double-digit increases in sales of seasoning and recipe mixes this year, highlighting the resourcefulness of Filipinos as they navigate rising prices.

Based on the latest Sari IQ report, Filipino startup Packworks said sales of seasoning mix items grew by 80 percent this year compared to the previous year, while recipe mix sales surged by 72 percent.

Findings of the report also showed that seasoning mix was sold in 69 percent more sari-sari stores, while recipe mix saw an even greater reach, expanding to 79 percent more locations, according to the report.

The startup, which provides a business-to-business (B2B) open platform to sari-sari stores, said the trends reflect the resourcefulness of Filipino households, who are stretching their budgets by buying cost-effective additives to enhance cheaper ingredients sourced from wet markets.

It said that as prices continue to rise, many Filipinos find ways to make their money go further.

“The resilience of Filipinos shines through in the way they adapt their purchasing habits to make ends meet. These insights highlight not only the shifting preferences of sari-sari store customers but also their enduring ingenuity in navigating economic challenges,” Packworks chief data officer Andoy Montiel said.

The report also showed that the Bicol region recorded the highest sales growth this year, with over P616 million in gross merchandise value (GMV) from sari-sari store transactions this year, moving up four positions compared to 2023.

“The sales growth in Bicol can be attributed to the increase in the number of sari-sari stores in our network in the region,” Montiel said.

“Additionally, we’ve observed that rural, agriculture-based regions like Bicol remain more dependent on sari-sari stores than modern trade stores such as groceries,” he added.

Meanwhile, CALABARZON registered the highest GMV this year at P1.9 billion. This was followed by Central Luzon (P1.02 billion) and Cagayan Valley (P979 million). Other top regions with the highest GMV are Ilocos Region (P811 million) and Central Visayas (P695 million).

Packworks compiled the findings from its network of over 300,000 sari-sari stores nationwide through its business intelligence tool Sari IQ.

Launched in 2022, it utilizes data analytics to understand and predict consumer behavior, enabling retailers and multinational brands to make data-driven decisions that boost sales for sari-sari store owners and expand their product offerings to a larger customer base.

The latest results of the Sari IQ report were unveiled during the startup’s first-ever Sari-Sari Store Innovation Summit in Taguig. The event brought together key figures and decision-makers from some of the country’s most prominent FMCG brands, distributors, and policymakers to delve into how technology and collaboration can address the challenges faced by sari-sari stores, from digitalization to economic empowerment.

“Sari-sari stores remain the fastest-growing channel compared to modern trade per year-on-year, serving as an indispensable part of the sales ecosystem in the Philippines. Despite this, many stores are still operating informally, do not have access to government support and financing, and are behind in technology adoption,” former trade undersecretary Ed Sunico said during the event.

Sunico highlighted public-private partnerships as essential to empowering the sector, citing the Department of Trade and Industry’s “Tindahan Mo, e-Level Up Mo!” program, launched in collaboration with organizations like Packworks to support and digitalize micro, small and medium enterprises.

“Together with our partners, we are committed to providing sari-sari stores with business success that they would not have achieved without technology. As we build our network of stores, let’s imagine a future for them beyond digitization,” Packworks CEO Bing Tan said.