Magazines Archives - 2008 January

Consumer confidence takes a dive for the year ahead in some markets
Story 9

THAILAND, Taiwan and Italy are among the top three markets expecting a global recession in the year ahead, in light of burgeoning oil prices and a likely US recession. According to a recent
study done by The Nielsen Company, an international market research group, on global consumer confidence, more than a quarter of the consumers surveyed expect a global downturn this year.

The study found the Asia-Pacific markets, including Indonesia, Australia, Hong Kong, Vietnam, New Zealand and Singapore, the most optimistic that a recession will not take place this year.

In contrast with Hong Kong and India, where more than 60% remained optimistic about spending over the next year, South Koreans, Taiwanese and Japanese are among the most cautious.

Meanwhile, a majority of the Chinese were investing in the future, while Hong Kong and Taiwan remained top investors in the region. Kenneth Lee, executive director of customised research of The Nielsen Company, noted: “Despite rising international concerns about a slowdown in developed markets, Chinese consumers are clearly confident that China’s robust growth won’t let them down in 2008.”

About 40% of those surveyed were confident that the two fastest-developing countries, China and Vietnam, would hold back the global recession this year.

“Consumers around the world are cautious about spending — of the 48 markets surveyed, 26 recorded a continuing decline in their readiness to spend compared to six months ago,”
Lee stated.

"Chinese retailers have less to fear while retail figures remain strong and in light of rising disposable incomes among Chinese consumers,” he added.