Sachet Economy

Today, we had visitors from China doing research on Central Visayas, with focus on Cebu’s foreign trade activities.

The researchers were particularly interested in Cebu because of the impressive economic development in this tiny part of the archipelago.

I can see what they mean, a quick glance at our export statistics show that Cebu’s exports to China is on a steep climb. In fact, the value of our exports is higher than our imports to China.

Oh yes, we gave our foreign researchers the usual data we make available to the public. --- nothing confidential and not so much as to give ourselves away.

Being hospitable, we served them coffee, sugar and creamer in sachets, of course. .

Speaking of sachets, I noticed that this has become a trend in the Philippine economy.

While US consumers are obsessed with super sized orders, here everything is purchased bit by bit.

Local consumers have learned to adapt to economic hardships by deciding to buy products in the smaller quantities rather than pay for volume which may be cheaper in the long run. This is how they are able to cope with high prices and low incomes.

Still, big profits come in small packages - from cigarettes sold by the stick to little plastic packs of salt. 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%).”

The Philippines has become one of the world's biggest markets for goods sold in small quantities, earning itself the nickname 'sachet economy'.

Although logic dictates that buying a small pack is more expensive in the long run than buying a huge bunch in one go, the introduction of sachets has made most products accessible to the poorest segment of the population.

This is significant because, according to figures from the Asian Development bank, 39.5% of Filipinos live below the poverty.

Still, it is ironic that the poor need to pay more for things they can’t afford to buy in bulk.