Why Pinoys Like To Shop More Than Save Money

MANILA, Philippines - There's little doubt many Filipinos love shopping and spending, as seen with the crowds that flock to the many malls around the metropolis every day.

Unlike most Asians who are stereotyped as frugal savers, it seems Filipinos like to spend their money, not save it.

In an interview on ANC's "On the Money," Benedicto "Poch" Cid Jr, chief brand advisor of Mansmith and Fielders Inc., gave some insights on why Filipinos like to shop and spend.

"We like to enjoy ourselves. Some cultures value sacrifice, frugality and giving up for the future. We are not quite one of those. We like to live," he said.

Cid explained that this hardwired emotional need affects most of the country's consumer population, differentiating the Philippines from other Asian countries where sacrifice and frugality are valued.

"We like to be noticed. We like to be fashionable. We like to be in style. We want to be 'pogi' or 'maganda' and its a characteristic of ours," he said.

According to Cid, marketers have managed to tap into this need and suggest that buying their product will enable Filipino buyers to live a dream, especially in products which are consumed publicly, like brand name fashion items.

"Today, compared to 10 years ago, people are definitely more brand-conscious. Filipinos have more money. The Philippines is going through a phase in where as income rise, people appreciate brand names more," Cid noted.

The Philippine economy has shown strong growth in recent years, backed by rising consumer spending fueled by remittances from overseas Filipinos and young Filipinos employed by BPO companies. Many foreign brands such as Gap, Uniqlo, Forever 21 and Zara have set up shop in the country, in hopes of attracting Filipino shoppers.

"We have a young population growing to buying age and falling in love with a lot of brands. But as they grow older, they will make mistakes and learn," Cid added.

Cid said young Filipinos should ask themselves how buying makes them feel. "Because you probably would start to understand what emotional reward you're getting from all this buying. But once you've got that understood, see that if you can satisfy those needs by doing something else. It all comes to down to delaying that moment of decision," he said.

So before you hit the mall and buy something, Cid offers this advice: "If you want to safeguard yourself, back away and don't make a decision right away, especially for a big-ticket item... Just ask for a little time. Back away from it, breath, move away and let your mind, sleep on it. What that does is that it allows you to bring up your other needs and you can choose to balance them."