Why Filipinos Love to Shop and Spend

There is no doubt about it, Filipinos simply love to spend and shop at every chance they get. The Philippines is even called as the Mall Republic with the ubiquitous malls mushrooming in every city, corner, and virtually everywhere is just one of the proofs that indeed spending is on the rise in this country.

Do Filipinos generally earn more to allow them this habit? Not really because still, majority of the population is under the poverty line. However, those in the middle income level are inclined to shop for consumer and technological goods, in short, mostly consumer goods. Hence, credit cards come in handy and a reason why many would love to have these tiny plastic to allow them the convenience and the credit of spending to their heart's content. Despite the recent world economic slump, a study by Synovate in 2009 revealed that Filipinos spending habit generally remained the same, with spending on luxury items only reduced. This means, that even in major world economic downturn, the spending habits of Filipinos has not been significantly affected.

The Philippines has malls big and small. The biggest of which the Mall of Asia (MOA) spanning 42 hectares and considered the third biggest in Asia and the 4th biggest in the world according to Forbes. Average daily foot traffic at MOA is at 200,000.

If they could have their way, Filipinos want their malls big. Quite the opposite of what you see in the West. Malls in the Philippines dot everywhere and you should see how people love to flock to malls, any day of the week. One is deemed lucky to find a free mall parking space beyond the 10am mall operating hours. 

Imagine the competition among this malls during 'sale' season. In one area like the Ortigas Center in Metro Manila, malls are literally few steps off each other. Sale season is indeed a frenzy with every mall in neck-to-neck price competition to lure eager shoppers particularly during payday weekends. Hordes troop to these malls at any given day of the week, with the most during weekends and holidays.

Filipinos love fellowship and like to spend time together with family and friends. Celebrations and holidays bring most Filipinos together. The Philippines is known for celebrating the longest Christmas season in the world. And that is just one of the countless festivities and celebrations in the country. Aside from Christmas, there are the fiestas, birthdays, baptisms, weddings, big reunions, and anniversaries, hence, more reasons to spend really.

Although this spending habit is good news for businessmen, this could not be said for the country's future savings and investment outlook. As people spend more of their income on consumer goods, less goes to savings and investment.