Retail spending to remain weak in Asia Pacific

by Louise Maureen Simeon – The Philippine Star, 9 Oct 2021

MANILA, Philippines — Retail spending in Asia-Pacific including the Philippines will remain subdued in the near term as consumers are still wary of COVID even as vaccination rates continue to rise, according to a survey conducted by UK-based data and analytics company GlobalData.

Consumers in the region are expected to practice caution in retail spending in the near term even as countries ramp up their rollout of COVID vaccination programs to ensure a more stable reopening of their economies, the survey said.

According to GlobalData, majority or 83 percent of consumers in the region are still concerned about the impact of COVID in general, while more than 60 percent of consumers are anxious about their physical health and fitness amid the threats of the pandemic.

Some 66 percent of consumers are likewise worried about their financial situation which in turn, may slow the recovery of retail spending despite the growing adoption of e-commerce among consumers.

GlobalData retail analyst Ankita Roy said these findings only showed that the economic impact of COVID on the region has been weighing on the minds of consumers, which may cause them to only buy products that provide more perceived value for money.

A big portion or 66 percent of respondents are still working from home, leading to an increase in their online presence with 90 percent of them either starting or continuing to spend more time online.

Roy said online demand would remain strong in a post-pandemic world as consumers get used to online shopping.