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Shoppers choosing cheaper goods damp most consumer stocks
Consumers are less willing to splurge and become less loyal to brands, a survey showed.
By Ariz Marcelino and German dela Paz III
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Consumers kept choosing cheaper alternatives in 2024. This tendency, also called downtrading, may continue for some time.
Call it cautious optimism, but despite easing price pressure and lower interest rates making households less pessimistic about the future, consumers remain frugal.
Following fast inflation in 2022 and 2023, more consumers last year were less willing to splurge on better quality essential products, according to a survey by UBS Evidence Lab.
No splurging on quality goods
They also have drifted away from brand loyalty, the survey showed. To some extent, these stem from slower wage gains compared to inflation. The current real daily minimum wage has yet to meaningfully breach the five-year pre-pandemic average.
Less brand loyalty
The peso’s purchasing power falling by an
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