NIELSEN: Consumer Confidence in Korea in Q1 scored 51, the lowest since 2010
Global Consumer Confidence Index in Q1 2011 rose to 92, which is up 2 points compared to Q4 2010, according to the latest Global Consumer Confidence Index by The Nielsen Company (NYSE: NLSN), a global information service company, on a quarterly basis. Regionally, it shows the highest scores in Middle East & Africa(106 index points) which is increased 17 points for the previous quarter and in Asia Pacific(107 index points) which was up 8 points compared to Q4 2010 and 10 points increase year on year.
Consumers in India(131 index points) were the most bullish globally which is edged up 1 point, followed by Saudi Arabia(118 index points, +14 points) and Indonesia(116 index points, + 10 points). Consumer Confidence Index was weakest in Portugal(39), which increased 6 points for the previous quarter. “Global recovery, despite its slow pace, is heading in the right direction. But still, more than half (55%) of global online consumers say they are currently in a recession, and of those, 51 percent expect to be in a recession for at least another year.” said Eun-Hee Shin, Managing Director, Nielsen Company Korea. “In the last 18 months, we have seen a clear divergence in how regions and countries are emerging from the global recession and this trend has become even more pronounced in the first quarter.” added Shin.
“Since 2010, the consumer inflation rate has been steadily rising due to unusually cold weather and an outbreak of foot-and-mouth disease among dairy, beef and pig farms. Although the unemployment rate has been slightly decreased by job creation in the private sector, overall consumer sentiment has continued to weaken due to the sluggish housing marketing, rising interest rates and high oil prices.” analyzed Shin regarding Consumer Confidence Index in Korea.
Regional & Divergent Economies
1. Asia Pacific: the Most Optimistic Region
60% of Asia Pacific online consumers described their local job prospects as optimistic, which is higher than global average of 46% and 11% increase for the previous quarter. Moreover, they showed economical confidence that only 37% of them said their country is in an economic recession while more than 1 out of 2 global consumers(55%) feel the same way.
In China, confidence rose 8 points to an index of 108. “The good news is that income is rising faster than inflation, particularly in rural areas, and living standards continue to improve,” said Karthik Rao, Managing Director, Nielsen China. “As a result, we continue to see strong growth in marketplace demand, even in discretionary categories.”
2. Middle East and Africa: Biggest Rise in Consumer Confidence
In the Middle East/North Africa, Egyptians’ overwhelming elation of a new nation led to a 29 point surge to a score of 102 for the country. “The joy of gaining civil and political freedom and experiencing the first truly free voting has raised consumers’ expectations and hopes for faster economic growth,” said Khaled El Tohami, Managing Director, Nielsen Egypt. Egypt’s new-found confidence spread to neighboring Saudi Arabia (+11) and United Arab Emirates (+12) countries, which both enjoyed double-digit increases compared to the previous quarter.
3. Southern & Eastern Europe: Dip to New Lows
Consumer confidence levels in Europe continued to decline in 18 out of 28 countries measured for a regional consumer confidence drop of 5 points from last quarter to a score of 73. In contrast, Germany surged ahead 18 points within one year to record its highest consumer confidence level on record at 92 index points, driven by declining unemployment rates and good job prospects.
4. North Americas: Slight Increase led by United States and Canada
North America rose 2 index points to a consumer confidence score of 85 driven by increases in both the United States(83 index points) and Canada(102 index points). “In the U.S., an improving labor market drove a two point rise in consumer confidence, but the resulting score of 83 is still precariously close to the recession low of 80 recorded in 2009,” said James Russo, Vice President, Global Consumer Insights at The Nielsen Company.
5. Latin Americas: Confidence Declines, but Sales Trends are Up
Latin America declined 10 points to an index of 90, driven largely by Brazil’s 13 point index drop amid rising inflation and interest rates and a new political scenario. “The current results put Brazil back to levels recorded in early 2009 when the world felt the effects of the global crisis more strongly,” said Eduardo Ragasol, General Manager, Nielsen Latin America. “While sales have slowed since the previous period, they are still growing at a rate of 2.3 percent.”
Major Concerns over the next 6 months:
Koreans most concerned about ‘The economy’(14%) while global consumers concerned most about ‘Rising food prices’(13%) and ‘Fuel prices’(9%)
Replacing ‘The economy’ as the number one concern among global online consumers, the rise in ‘Food prices’ is now what worries consumers most, increasing 4% points from last quarter to 13 percent. ‘The economy’, the second biggest concern, dropped seven points to 11% in first quarter. ‘Fuel prices’ also increased significantly as a major concern for consumers, escalating 6% points to 8%. ‘Rising utility bills’ remained a top concern among 7% of online respondents. (Plural answers)
Among Asia Pacific consumers, ‘The economy’ and ‘Rising food prices’(both 14%) are ranked first as their major concerns, followed by ‘Work and Life balance’(12%) and ‘Health’(11%). Koreans chose ‘The economy’(14%) as their most concern, followed by ‘Children’s education/Welfare’(9%) as well as ‘Work & Life balance’(12%)
“Rising fuel and food prices are taking a toll on consumers around the world as more and more households are spending a higher proportion of their limited income on these necessities,” said Cindy Shin. “As spare cash continues to dwindle, consumers are taking actions to save on household expenses by spending less on non-essential items and activities.” added Shin.
Koreans cut down on take-away meals’(67%) while global and Asia Pacific consumers spent less on ‘new clothes’(57%) to save household expenses
In fact, it appeared that global consumers answered the most that they spent less on ‘new clothes’(57%), followed by ‘out-of-home entertainment’(55%) and ‘gas/electricity’(51%). In Korea, consumers cut down on ‘take-away meals’(67%) the most, followed by ‘gas/electricity’(54%) and they also switched to cheaper grocery brands(51%).
About the Nielsen Global Online Survey
The Nielsen Global Online Survey was conducted between March 23 and April 12, 2011 and polled more than 28,000 consumers in 51 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion.
Website: https://nielseniq.com
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Hee-Jung Yang
Nielsen Company Korea
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2023년 3월 9일 10:40