Page 6

Slowdown Impacts Outlook, But Asians Remain Optimistic Indian consumers (126 index), despite a five point quarterly decline, remained the most positive about job prospects and personal finances and have consistently reported the highest consumer confidence scores since Nielsen consumer confidence tracking began in 2005. “A host of factors are weighing heavily on the Indian consumer’s mind. While still clearly the most optimistic across the globe, heated price inflation, fuel price hikes and an uncertain global economy are acting as constraints to a buoyant outlook,” said Justin Sargent, Managing Director, Nielsen India. “We are likely to see adjustments to the purchase basket in terms of greater ‘value-consciousness’ guided by robust demand, but a large pull back in terms of overall spending is unlikely unless inflation continues unabated.” Eight out of 14 Asia Pacific markets posted quarterly declines in Q2 with steepest declines from Australia (-7 points) and Singapore (-6 points). Australia’s index has been on the decline since Q3 2010. “Australian households are being hit hard with unrelenting price increases across the board. From July 1, households will be hit by one of the biggest rises in the cost of living in decades – utility

22%

14%

27% 7

11%

48%

24%

37%

20%

13% 3

8%

52%

22%

35%

15%

29% 9

15%

44%

35%

27%

10%

15%

6%

18%

9%

16%

10%

30%

12%

39%

16%

8%

4%

Copyright © 2011 The Nielsen Company.

5

59%

59%

43%

40%

39%

38%

36%

37%

26%

24%

29%

32%

18%

25%

31%

38%

7%

5%

11%

11%

2%

2%

bills. These are set to soar with electricity, water and gas prices all increasing,” said Chris Percy, Managing Director, Nielsen Pacific. “And the January floods, which restricted supplies of fruit and vegetables, had lingering effects on produce costs, causing food prices to rise. Belt-tightening is the norm for many households as price increases erode family budgets.” Malaysia (110), New Zealand (97), Philippines (115) and South Korea (52) posted quarterly confidence increases and Hong Kong (107) remained flat. China’s consumer confidence declined three points quarterly to 105 and is four points off its year ago index of 109. “The slight drop in consumer confidence in China is reflective of inflation, which is still a top-of-mind issue for consumers. While inflation has continued to creep up in the last three months, there aren’t any signs of slowdown in consumption – even in discretionary categories, as observed in the second quarter of 2011. The continued strength in domestic consumption is a reflection of continued overall optimism in the economy, driven by growth in income levels,” said Karthik Rao, Managing Director, Nielsen Greater China.

19%

14%

7%

13%

14%

9%

6%

6%

10%

10%

5%

6%

9%

8%

4%

6%

9%

7%

3%

4%

46%

46%

30%

30%

24%

23%

12%

13%

47%

41%

32%

40%

3%

3%

/124_nielsen_paper_global-online-consumer-confidence-q2-201  

http://www.brandchannel.com/images/papers/124_nielsen_paper_global-online-consumer-confidence-q2-2011.pdf

/124_nielsen_paper_global-online-consumer-confidence-q2-201  

http://www.brandchannel.com/images/papers/124_nielsen_paper_global-online-consumer-confidence-q2-2011.pdf

Advertisement