ONE of the most distinctive features of retail consumption here in the Philippines is the “tingi” economy that we have.
For decades, there has been a booming “tingi” economy which is the practice of selling in small portions to cater to consumers who have a tight budget. Various factors have led to consumers patronizing these small portions of goods which offer them not just affordability, but also convenience and accessibility. In other countries, particularly in the Americas and Europe, products are usually sold in volume and bulk (or in large packaging sizes) which we can only see here in the Philippines in membership shopping stores like S&R and Landers. But even these membership stores couldn’t help but to occasionally sell in smaller portions due to insistent consumer demands.
We can usually find goods in “tingi” in neighborhood stores, street corners, convenience stores, mini-marts, and sari-sari stores which range from margarine to cooking oil, and shampoo to cleaning products. Snacks, instant foods, toothpaste and cooking oil sold in “tingi” have also been proliferating the shelves of various retail stores. It is already an acquired phenomenon for Filipinos that has been shaping the retail environment in the Philippines despite of the evolving purchasing power and preferences of consumers.
As I ponder on the probable cause of this infamous tingi economy in the Philippines, the first thing that I could think of is the financial capabilities of the majority of the Filipinos more especially during its inception stage. We have faced a lot of economic turmoil which triggered increase in the cost of living, and purchasing goods in large quantities is truly a burden. By breaking the bulk thru tingi or small portion retailing, consumers can already access products that they need without straining their pockets.
Although we may all think that the idea of tingi might have emerged from small businesses, surprisingly, and it is pretty obvious, that it is the large corporations and manufacturers of Fast Moving Consumer Goods (FMCG) that produce large chunks of brands and products sold in “tingi”. This move is part of their segmentation strategy wherein these products are directed toward the group of individuals who has a limited purchasing power. This further solidified their status as industry leaders for they are able to cater to a wide and expanded market segment which adds up to their profitability and longevity, and most importantly increased product and brand awareness.
Aside from the economics of patronizing “tingi” products, there are other factors which have led to the massive success of this retail strategy which can be traced from the behaviors that the Filipino consumers have. First is convenience: “tingi” products are designed for utmost convenience. Small portions and small-sized products fit easily to a person’s daily routine, and they can buy them from either neighborhood store or convenience store near them. “Tingi” goods also allows consumers to purchase only what they need for a day, or the week which gives them utmost financing flexibility. Buying in smaller quantities can also avoid wastages and let them rebuy only if they run out.
It is more likely that the “tingi” economy will evolve in the future as the needs and behaviors of Filipino consumers change. But one thing is for sure: it will continue to evolve as an ongoing process and will remain a permanent fixture in the contemporary retail environment.|
