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Manufacturers in the US may be driven by the 'super-sized', bulk- obsessed consumer but in the Philippines, orders come bit by bit, says Tina Arceo-Dumlao
In the Philippines, big profits come in small packages - from cigarettes sold by the stick to little plastic packs of pepper. A recent Synovate Global Omnibus study revealed that nearly 90% of Filipinos buy items in sachet sizes, including non-food goods such as shampoo (90%), toothpaste (47%) and detergent powder (13%). This archipelago has become one of the world's biggest markets for goods sold in small quantities, earning itself the nickname, the 'sachet economy'.
But does it all add up? Surely logic dictates that buying individual aspirin is more expensive in the long run than buying a thousand in one go? Not so. The Soap and Detergent Association of the Philippines claims that the introduction of sachets, made possible by the use of composite materials, has made the quality products offering hygiene benefits, such as toothpaste and shampoo, accessible to the poorest part of the population.
According to figures from the Asian Development bank, 39.5% of Filipinos live below the poverty line of $1, or 55 Philippines pesos (53p) a day, and more than 55% exist on less then $2 (pound 1.07). In addition, the latest data from the National Statistics Coordination Board shows that Filipino families spend only about 2.3% of their income on household goods and 3.6% on personal care and effects - making it difficult for them to invest even PHP100 (98p) for a bottle of shampoo.
Fortunately, SDAP data shows that the use of sachets allows the consumer to pay for the product rather than the packaging. A typical 10ml shampoo sachet sells for about PHP3.50 (3p) compared to PHP48 (47p) for a 100ml bottle. Toothpaste sachets, meanwhile, go for PHP6 (5p) per 10ml...