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29 January 2008
Mumbai, India
India dips two points to 133, in the recent leg of the Nielsen Global Consumer Confidence Index representing a dip for the third consecutive round since its peak score of 137 in late 2006. India, which had topped the twice-yearly Global Consumer Confidence Index conducted by The Nielsen Company five times in a row before, has moved to the second position with Norway being the first in the November 2007 survey.
This is in line with consumer sentiments worldwide. According to the latest Global Consumer Confidence Study conducted by The Nielsen Company, more than a quarter of global consumers expect a global recession in 2008, resulting in a dip in confidence in 21 of the 48 markets Nielsen surveyed. 27 percent of the Indian respondents too fear a global recession in the next 12 months.
In addition to India, Asia Pacific markets including Indonesia, Australia, Hong Kong, Vietnam, New Zealand and Singapore were all among the world’s top 10 most optimistic - with Indonesia, Australia and Singapore in particular registering an increase in consumer confidence levels – making Asia Pacific the most optimistic region worldwide.
Job Prospects & Personal Finances
Though the Consumer Confidence in India has dropped slightly, Indians are very optimistic about the local job prospects over the next twelve months. 38 percent Indian respondents consider job prospects in the country excellent and 57 percent respondents consider the job prospects good. With 95 percent, Indians are the second most optimistic people where the job market is concerned over the next 12 months.
“The Sensex is constantly rising as a result of the booming economy of the country. New avenues are opening up constantly with various MNCs setting shop in the country, Indian companies are entering foreign soil with various high profile acquisitions. The whole world is watching India and quite likely that has instilled Indians with the confidence that the job market is good,” said Sarang Panchal, Managing Director-Designate, Asia Pacific, The Nielsen Company.
The perception of healthy and promising job prospects for Indians over the next twelve months also makes them confident about their personal finances over the same period. 14 percent of Indian respondents consider their state of personal finances excellent and 74 percent consider it good in the next twelve months. Indians are the most optimistic people (88%) in the matter of personal finances.
Good job and financial prospects give Indians the freedom to indulge themselves and 60 percent of them are optimistic that it is the perfect time to buy things that they would want or need.
“The multitude of malls and shopping complexes that are mushrooming all over the place suggests that someone out there is spending a good amount of money on themselves and their family and it is a good opportunity for marketers to cash in on this spending spree. Infact these trends are no longer restricted to bigger metros:, smaller towns too have their share of malls and branded shops. Money is not just in the hands of few city dwellers but it has reached far and beyond,” continued Panchal.
Saving for a rainy day is the most preferred option by more than half the respondents (54%) after covering their essential living expenses. 51 percent of Indians also invest in Shares and Mutual Funds.
“The rising Indian stock market index has led to greater investments in stocks and mutual funds by Indians. With the onset of various media, both print and electronic, news of the market reaches the living rooms of people and we see from housewives to students to retired people all taking a fancy to the trading business,” said Panchal.
Interestingly, 34 percent of Indians will spend on New Clothes after spending on their essentials. Spending on Holidays (33%), Home Improvements and Decor (30%), New Technology (29%), Out of Home Entertainment (28%), Paying off Debts (28%) are some other areas where Indians will spend their spare cash on.
“Though all over we get a sense of splurging with good disposable cash in the hands of individuals, Indians are also prudent in thinking that to maintain their current lifestyle even when they get old and retire, it is important for them to save from now. Hence 20 percent of Indians invest in Retirement Funds, which is sixth highest for a country globally,” added Panchal.
Despite the fact that globally people are spending less and 13 percent of global consumers have no spare cash after meeting their essential living expenses, only 4 percent of Indians surveyed have no spare cash left with them, a good indicator of the improving financial condition in the country.
What concerns Indians?
Confidence levels have dropped across countries globally and there are some major concerns for consumers over the next six months. For Indians, the Economy of the country tops the list of concerns with 30 percent votes, which is 16 percent less than the last leg of the survey, conducted in May 2007.
In the event of a downturn in the local economy, Indians would be most concerned about Inflation (52%), Unemployment (50%), Political Stability (37%), Rise in Interest Rates (36%), Civil Conflicts (14%), and Falling Property Prices (12%). 11 percent of Indians are also concerned about strikes in case of a downturn in the economy, the highest alongwith Philippines for any country in Asia Pacific.
With 28 percent of the people mentioning it, Health and Political Stability are the second major concerns for Indians over the next six months. Terrorism has become a constant concern for Indians who have been subjected to it for the past sixty years. There is a nine percent increase in respondents who think that terrorism is a major concern for India with 25 percent voting for it, the second highest percentage for any country globally, with Turkey leading the list with 59 percent.
Other concerns include Job Security (23%), Global Warming (18%), Crime (11%), Immigration (2%), and War (1%).
Taiwan (74%) tops the world with most people concerned about the state of the Economy in the next six months, followed by people in China (71%). In fact, seven of the top 10 markets most concerned about the Economy hail from Asia Pacific.
The Survey
The latest survey, conducted from October to November, polled about 26,312 internet users in 48 markets from Europe, Asia Pacific, North America and the Middle East. The Nielsen Online Consumer Confidence and Opinion Survey is the largest half-yearly survey of its kind, aimed at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (Net Ratings and Buzz Metrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Ad week). The privately held company is active in more than 100 countries, with headquarters in Harlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
48 Markets Covered: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Czechs Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Korea, Latvia, Lithuania, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, United Kingdom, US and Vietnam.
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