GLOBAL CONSUMER CONFIDENCE AT AN ALL-TIME LOW YET BRIC COUNTRIES REMAIN THE MOST OPTIMISTIC, TURMOIL PROOF: NIELSEN

THAI CONSUMERS TIGHEN THEIR BELTS Consumer confidence dives around the world, with the latest Nielsen Global Consumer Confidence Index hitting an all-time low of 84 since 2006 according to The Nielsen Company. A twice-yearly study, the Nielsen Global Consumer Confidence study polled more than 26,000 consumers in 52 markets from 22 Sept to 6 Oct 2008 about their confidence levels and economic outlook since the last survey in May 2008. Conducted in the midst of the global financial crisis, the latest survey reveals that global consumer confidence has taken a further beating, dropping from its peak of 99 in 2006 to 84 this time round. Of the 52 markets surveyed, 43 (or 82%) have recorded a decline in the Consumer Confidence Index from the first half of 2008. The consumer sentiment is gloomy globally, with 62 percent thinking local job prospects are not looking good and more than two thirds not considering the next 12 months a good time to spend. It is the fast developing markets that are turmoil proof with their consumers appear to be more optimistic, as evidenced by the performance of the BRIC markets – India tops the world as the most optimistic, Brazil and China recorded an increase in their Index score and Russia ranked the 5th most optimistic – all gained pace as the global top 10 most optimistic countries. (Table 1) “In the growing economies of BRIC countries, many products and services continue to post strong double digit growth and consumer spending has not been affected to the same extent as Western economies,” said Chantira Luesakul, Managing Director of The Nielsen Company ( Thailand) Limited. “Despite being impacted by the current global conditions, corporations and consumers in these large developing countries are aware that their medium-to-long-term prospects remain strong.” In the US where the credit crunch originated, consumer confidence dropped further, with its Index hitting a new low of 82, down from 100 in the same period last year. The majority of US consumers (86%) think their country is in an economic recession and over half of those think the recession will linger for the next 12 months. The Thai consumers’ confidence has increased slightly from 87 to 89 over the last six months. Eight out of 10 think the country is currently in recession and around four in 10 Thais don’t believe that the country will be out of the economic recession in the next twelve months. (Table 2) The survey also found that 72 percent of Thai people are skeptical about the local job prospects and 68 percent of them considered it “not so good/bad time” to buy things they want over the next 12 months. More than half of them (58%) plan to save any leftover cash after covering basic living expenses. “For global consumers, the last 12 months have been challenging and turbulent and Thailand is no exception, with an economy that is closely intertwined with world demand,” said Ms Chantira “On a positive note, over half of people in Thailand remain quite optimistic about the state of their personal finances in the next 12 months and only five percent of them said they had no spare cash” Major concerns in the next six months Like the world consumers, 40 percent of Thais are most concerned about the Economy followed by Political stability (27%), Increasing fuel prices (20%), Debt (18%) and Job security (16%). Opportunities in difficult times When asked about their spending intentions after covering essential living expenses, Saving for a rainy day is again the top priority for Thai consumers with 58 percent claiming to put their spare cash into saving followed by Holidays/Vacations (51%) and Retirement Fund (36%). Judging by Nielsen’s survey findings, people in Thailand are not holding back from spending entirely but are willing to open their purse strings for good bargains. Despite a more cautious spending sentiment, there are opportunities for companies in the leisure, retail and Electronics & IT sectors, with spending options like Holidays/Vacations (51%), Home improvements/decorating (34%),and new technology product (32%) continuing to sit at the top of Thai people’s shopping lists when they have spare cash. While no one could have predicted the extent of the recent global financial crisis, consumers already started changing their spending patterns and shopping behavior since last year. According to Nielsen’s survey on consumer recessionary behaviors, Thai consumers will cut back on the following expenses: Save on Gas & Electricity (60%) Cut down on Out of Home Entertainment (57%) Spend less on New Clothes (56%)Use my car less often (49%)Cut down on telephone expense (44%) (Table 3) "Staying In has become the new Going Out for a new breed of credit crunch consumers,” said Chantira. “The “stay-in” trend is providing new marketing opportunities for innovative at-home entertainment options as well as at-home food and beverage products, along with premium and prepared food ranges specifically aimed at home entertaining”. “ During economic slowdowns, it’s important to remember that there are gaps and opportunities for savvy marketers,” said Chantira “Companies that continue invest in their brands and products and stay constantly engaged with their target market will come out of this downturn as winners. Consumers will remember the companies and products which best understand their changing needs and demands during a slowdown. For marketers, brand investment during a downturn has never been more important to drive and secure brand loyalty for better days ahead,” added Chantira. 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 (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com. Table 1 Consumer Confidence Index Rankings Country Index 2H 2008 India 114 Denmark 112 Indonesia 110 UAE 110 Norway 109 Brazil 109 Australia 104 Russia 104 Philippines 102 Netherlands 99 Poland 98 New Zealand 98 Vietnam 97 Switzerland 97 Canada 96 Colombia 96 China 96 Venezuela 96 CONTACT: For Immediate Release Nitjawan Khooha (Nikki) Email:[email protected] Tel:02-674-6000 ext.5131 or 089-7727707 Click for photo release at www.thaipr.net

• ข่าวThe Nielsen Company
• ข่าวo:gen
• ข่าวo:eco
• ข่าวen
• ข่าวo:it