Philippines' elites continue to spend despite the financial crisis, reveals Synovate PAX survey

12 November 2009

MANILA — Synovate, a leading global market intelligence company, recently released its 2009 PAX survey findings, revealing that affluent consumers in Manila continued to spend despite the recession in the past year. Average monthly billing on credit cards increased from US$549 (Q2 2008) to US$666 (Q2 2009). Manila also saw the highest jump in the percentage of elites preferring to buy well known brands compared to other Asia Pacific markets, from 39.6% last year to 48.4% this year.

In its 13^th year, Synovate PAX is the region's most comprehensive study of elite adults, tracking media and digital consumption, prosperity, and influence across 11 markets: Hong Kong, Singapore, Korea, Taiwan, Thailand, Malaysia, India, Indonesia, the Philippines, Japan and Australia.

The survey is conducted year-round, and Synovate spoke with 1,670 affluent residents in Manila to get the 2009 results.

Affluent consumers vital for many categories

An indication of the power of the rich, almost one quarter (23.9%) of Manila's affluent have gone on one or more leisure trips in the past 12 months, compared to only 2% of the general population.

Over 69.1% of affluent consumers in Manila own a mobile phone with Internet access and camera functions, which is 37.1% more than the general population. Similarly for digital video cameras (63% of affluent consumers vs.28% of the general population), private cars (62.1% vs.12%), laptops (47.9% vs. 12%), SLR digital still cameras (28.2% vs. 10%), and flat screen TVs (38.2% vs. 18%). Please refer to the following figure for a graphical comparison.

Ownership of several product categories between affluent consumers and the general population in Manila

Continue to spend in good times and bad

Affluent Manila consumers show the highest increase in intention to purchase all things luxurious compared to other markets surveyed, from designer clothes and leather goods (from 6.2% last year to 8.7% this year), quality accessories and footwear (from 5.1% to 7.1%), jewelleries (from 6.5% to 10.5%), to luxury watches (from 7.1% to 8.6%).

Consumption of alcohol also increased, from 28.5% of elites consuming it last year to 41.6% this year.

"We are seeing that affluent consumers in Manila do not want to give up the finer things in life," said Carole Ann Sarthou, Managing Director of Synovate in the Philippines. "Manila is one of only three markets, with Taipei and Singapore, which saw an increase in alcohol consumption this year. In fact, Manila saw the highest increase (13.1%), followed by Taipei (5.4%) and Singapore (3.2%)."

Ownership of technology

In Manila over the past year, there has been a 7.8% increase in the ownership of laptop computers among elite consumers, an 8% increase in ownership of MP4 players, and an 8.7% increase in ownership of digital still cameras.

Smartphones are also on the rise. Over double the number of elites from last year now have a hybrid mobile phone-capable unit in their pocket, from 7.5% last year to 15.6% this year.

Furthermore, findings show that 69.1% of elites currently own a mobile phone with Internet access and camera functions.

Still high in financial products ownership

More affluent Manila consumers own one or more financial products this year compared to last year, a rise from 68.5% of elites to 75%. Increases are seen in ownership of stock / securities / bonds (from 15.3% to 16.3%), foreign currencies as an investment (from 15.5% to 16.1%), and unit trust fund / mutual fund (from 9.8% to 10.4%).

A significant jump is also seen in private property ownership from 51.5% in period ending Q2 2008 to 58.2% in period ending Q2 2009. In terms of other properties meant for investing purposes, ownership for elites in Manila is highest compared to other markets surveyed, at 39.1%, remaining stable from last year's 38.8%.

Download PAX 2009 Philippines Fact Sheet (PDF 65Kb)

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