|
14 Nov 2008
Shanghai
While the world remains in the grips of a global credit crunch, consumers in the world’s fastest developing countries – including China - believe the global recession will be over within a year, with fifty-one percent of Indians, 45 percent of Vietnamese and around one in three Chinese and Russians expecting the global recession to end within the next 12 months according to the Nielsen Global Consumer Confidence survey which polled 26,202 consumers in 52 countries in the midst of the global financial crisis earlier October.
For global consumers, the last twelve months have been challenging and turbulent, but Chinese consumers’ confidence has remained relatively stable since the second half of 2006 when the Nielsen survey was last conducted, even experiencing a small increase in this round of Nielsen consumer confidence survey. In the latest Nielsen survey, over half (56%) of Chinese consumers are optimistic about the state of their personal finances in the coming 12 months.
“While other countries’ consumers may be struggling to keep their heads above water, more than two thirds (72%) of Chinese consumers - living in one of the fastest growing economies in the world – are optimistic that their country is not currently in a recession -- nearly twice that of the global average (37%),” said Chris Morley, Managing Director, The Nielsen Company, China.
“Corporations and consumers in China remain confident that in spite of what is going on in the rest of the world, their medium-to-long-term prospects remain strong,” said Morley.
According to the Nielsen survey, consumers in developing markets are more optimistic about the current state of the economy than their counterparts in developed markets. India tops the world as the most optimistic, with Brazil and China recording an increase in their Nielsen Confidence Index and Russia ranking 5th most optimistic globally – with all featuring in Nielsen’s global top 10 most optimistic country rankings.
"One in two Indians believe the local economy will continue to show good growth, and the global recession will have limited impact on a buoyant domestic market large enough to support continued growth,” added Morley.
The latest Nielsen Global Consumer Confidence Survey showed that consumer confidence worldwide has fallen to its lowest level of 84 this year, since the survey started at 2005. Of the 52 markets surveyed, 43 recorded a decline in the Nielsen Consumer Confidence Index from the first half of 2008.
In the US, where the economy is facing challenging times and consumer confidence at record lows, the Nielsen Index reached 82, just below the global average. In Europe, the Nielsen Consumer Confidence Index suffered its deepest decline, falling to 77 percent. Neighboring South Korea sits at the bottom of the global rankings, recording a Nielsen Index of 36, and Japan ranks second last, at 44.
Opportunities in China
According to Nielsen’s Global Consumer Confidence survey, only three percent of Chinese consumers claim not to have any spare cash after paying for living essentials, the most fortunate in Asia Pacific (where six percent claim to have no spare cash) and lower than the global average of 12 percent. However, Chinese consumers still maintain a priority on savings, with 57 percent claiming to save money and 42 percent claiming to invest in shares or stocks and mutual funds if they have spare cash – the world’s third highest behind Hong Kong and India.
When it comes to spending, Chinese consumers’ willingness to spend in the next 12 months increased two percent compared to May 2008, reaching one third of China’s internet population. Holidays/vacations are the first choice for Chinese consumers after essential living expenses have been taken care of. More than half of Chinese consumers (53%) choose to go on holidays/vacations, taking first place for holidaying among global consumers (34%).
While consumers outside China are ready to tighten their belts, China’s consumers won’t be holding back. More than half of Chinese consumers (51%) claim they will spend their spare cash on new clothes, the world’s second most fashion-conscious behind Russia. 41 percent of Chinese consumers (ranked 2nd globally) will spend their spare cash on out of home entertainment at a time when their global counterparts are cutting down on dining out and buying the latest technology.
“While consumption will drop globally, China still offers huge market potential for those wanting to emerge unscathed from the global credit crunch. However, competition is intense and consumers are increasingly marketing-literate. Understanding the China market and its consumers is vital for success. Chinese consumers are price and promotion sensitive and are also less loyal than consumers in other markets, presenting challenges but also creating great opportunities for those wanting to succeed in this vast market place,“ said Mr. Morley.
Major Concerns in the Next Six Months
Globally and not surprisingly, one third of consumers are most concerned about the Economy, with one fifth concerned about Increasing Food Prices, followed by Work/Life Balance (18%), Job Security (17%), Health (17%) and Increasing Utility Bills (17%).
As eavesdroppers to the ear piercing screech of the global economy hitting the brakes, Chinese consumers’ biggest concern is in line with global concerns, with one third considering the Economy as their major concern in the next six months. Unlike consumers from other countries, Chinese consumers put themselves first with nearly 29 percent claiming Work/Life balance and Health to be equally important concerns, followed closely by Increasing Food Prices (28%). Job Security is also a concern for 27 percent of Chinese consumers. The Nielsen survey also found that Chinese consumers’ optimism in relation to local job prospects declined three points to 41 percent this time round.
About The Nielsen Global Online Consumer Survey
The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, was conducted from Sept 22 – October 6th 2008 among 26,202 internet users in 52 markets from Europe, Asia Pacific, North America and the Middle East. The largest half-yearly survey of its kind, the Nielsen Global Online Consumer Confidence and Opinion Survey provides insight into current confidence levels, spending habits/intentions and the major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend.
About The Nielsen Company
The Nielsen Company is a leading global information and media company providing essential integrated marketing and media measurement information and analytics and industry expertise to clients across the world. Nielsen maintains leading market positions in marketing and consumer information; television, online, mobile and other media intelligence; and trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). Nielsen is a privately held company and is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com.
Back to Top
|
