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Young People's Consumer Confidence Index - Developed and Growth Markets

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By collecting data from key markets we help businesses understand what young people think about their current and future economic prospects. …

By collecting data from key markets we help businesses understand what young people think about their current and future economic prospects.

By using a select group of growth and developed markets, it allows for a comparison of youth confidence in different economies. It also gives businesses looking to develop in growth markets, a good indication of the current and future health of the economy.

The YPPC will be repeated regularly so trends can be tracked over time.

Key results:


Overall young consumers in growth markets are at least twice as confident, compared to those in developed markets. Confidence is being driven in growth markets by a very positive outlook for the economy and future job prospects.

Young consumers in growth markets haven’t been jaded by a hard hitting recession that those in developed markets have, and there is a serious risk of young people in developing nations becoming the ‘lost generation’.

Growth markets optimisms towards their economy, transfers into views on buying large purchases and provides a fantastic opportunity for UK and US companies looking to export into these markets.

However when exporting to growth markets, companies must understand the different business practices, regulations, infrastructure, cultural differences and population makeup - in Nigeria 60% of the population is under 25, which impacts product demand.

What is clear, is that the mobile device is very important in the lives of young consumers all over the world, which will be reflected in not only how we research these consumers, but also how marketers communicate and transact with them.

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  • 1. Young People’s Consumer Confidence - Developed and Growth markets October 2012
  • 2. Summary• Overall young consumers in growth markets are at least twice as confident, compared to those in developed markets. Confidence is being driven in growth markets by a very positive outlook for the economy and future job prospects.• Young consumers in growth markets haven’t been jaded by a hard hitting recession that those in developed markets have, and there is a serious risk of young people in developing nations becoming the ‘lost generation’.• Growth markets optimisms towards their economy, transfers into views on buying large purchases and provides a fantastic opportunity for UK and US companies looking to export into these markets.• However when exporting to growth markets, companies must understand the different business practices, regulations, infrastructure, cultural differences and population makeup - in Nigeria 60% of the population is under 25, which impacts product demand.• What is clear, is that the mobile device is very important in the lives of young consumers all over the world, which will be reflected in not only how we research these consumers, but also how marketers communicate and transact with them. Contact us at info@ondeviceresearch.com to add in your own survey questions
  • 3. Young Consumer Confidence Index (YPCC)By collecting data from key markets we help businesses understand what youngpeople think about their current and future economic prospects.By using a select group of growth and developed markets, it allows for acomparison of youth confidence in different economies. It also givesbusinesses looking to develop in growth markets, a good indication of thecurrent and future health of the economy.The YPPC will be repeated regularly so trends can be tracked over time.Sign up to our newsletter on our website to receive future updates.
  • 4. Methodology • 5,600 mobile users completed a survey via the mobile internet • Study covers China, India, Nigeria, Brazil and the UK and US • Not nationally representative, but representative of young consumers 18-34 • Age, gender and regional quotasThe discrepancy between mobile and desktop internet penetration means mobile is the only way to research a growth market
  • 5. Index QuestionsThe index score is calculated using the mean results of six key questions,asking consumers:1. How do you expect your employment situation/prospects to change over the next 12 months?2. How do you expect the general economic situation in this country to change over the next 12 months?3. How are you feeling about your current employment situation/prospects?4. In view of the economy, is now the right time to buy big purchases?5. How are you feeling about your current personal/household financial situation?6. Overall how are you feeling about the economy?
  • 6. Index• Overview• Developed vs Growth Markets comparison• Highlight on US vs China• Demographics• Importance of mobile
  • 7. Developed vs Growth Markets
  • 8. Overall young consumers in growth markets are at least twice asconfident, compared to those in developed markets. Young Chineseconsumers have the overall highest confidence level YPCC Index 45 39 38 37 40 35 32 30 25 Index 20 16 15 10 10 5 0 China Brazil Nigeria India US UKSource: On Device Research YCCIBrazil, China, India, Nigeria, US,UKn = 5600August 2012
  • 9. A reason for China’s youth confidence? They’re experiencing stable GDP growth, compared to the UK and US where growth is minimal GDP growth (annual %) 14 2007 2008 2009 2010 2011 9 4 -1 China India Nigeria Brazil US UK -6Source: The World Bank
  • 10. Increased GDP also contributes to wealth and a mass of humanitythe size of the population of Europe, will be stepping up to themiddle classes in China in just two decades 74% 12% China’s middle class China’s middle class 2012 2030Source: Hargreaves Lansdown
  • 11. So what’s driving this confidence?
  • 12. Young people in the UK and US are fairly positive about theircurrent financial situation, but they are not so positive when itcomes to their current employment prospects Brazil Nigeria UK India China US How are you feeling about your current personal/household financial situation? How are you feeling about your current employment situation/prospects? 0 20 40 60Source: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 13. In July 2012, 1.02 million young people in the UK aged 16-24 wereunemployed, +37,000 on the same quarter in 2011. There is adanger that the UK’s youth will become a ‘lost generation’Source: UK Government StatisticsJuly 2012
  • 14. Britons are 15x less confident than growth markets (4 vs. 57) about howthe general economic situation will change in their own country in nextyear, and 3x less confident about their future employment prospects UK US India China Nigeria BrazilHow do you expect the general economic situation in this country to change over the next 12 months? How do you expect your employment situation/prospects to change over the next 12 months? 0 10 20 30 40 50 60 70 80Source: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 15. Young people in Brazil are very optimistic about their future – infact they’re 6x more confident about their future than youngpeople in the UK and US Why? Two potential reasons These events are going to have a major long term impact on improved infrastructure, tourism, creating jobs and bringing business to Brazil
  • 16. Differences in confidence is reflected in purchasing intent - growth marketsindex 32 points higher vs UK in believing now is the right time to make bigpurchases, a positive for companies looking to move into these markets. UK US Nigeria Brazil China India Overall how are you feeling about the economy? In view of the general economic situation, is now the right time for people to buy big purchases e.g electrical goods? -10 -5 0 5 10 15 20 25 30 35 Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 17. Summary of the major driver of confidence 39 38 37 32 16 10 Optimism for the future both for the Most confident about their current economy and job prospects financial situation Propensity to purchase big items In comparison these are areas developed nations are least confident aboutSource: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 18. US vs China
  • 19. Young Chinese consumers are 2.5x more confident than youngAmerican consumers YPCC Index 39 16Source: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 20. The Chinese are over five times more confident than young Americansabout the future economic situation of their country, and three timesmore confident about their employment prospects China US 70 60 50 40 30 20 10 0 Employment situation to change in Economic situation to change in next next year yearSource: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 21. The difference in economic confidence between young Americanconsumers and China is reflected in purchase intent - China index 24 pointshigher than US in believing now is the time to be making big purchases China US 30 25 20 15 10 5 0 Feeling about the economy Right time to buy big purchases -5Source: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 22. Differences in gender and age
  • 23. Generally young females tend to have a lower level of overallconfidence Male Female4540353025201510 5 0 Nigeria Brazil China India US UKSource: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 24. Apart from in Brazil and India the over 25s tend to have a lowerlevel of overall confidence Under 25 Over 25 45 40 35 30 25 20 15 10 5 0 China Nigeria Brazil India US UKSource: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 25. Importance of mobile
  • 26. One similarity between all markets however is the importance oftheir mobile, and this device is certain to have a big impact onyoung consumers lives across the developing and developed nations Mobile phone is very important/important to them 96% 92% 89% 80% 80% 73%Source: On Device Research YCCIBrazil, China, India, Nigeria, US, UKn = 5600August 2012
  • 27. Summary• Overall young consumers in growth markets are at least twice as confident, compared to those in developed markets. Confidence is being driven in growth markets by a very positive outlook for the economy and future job prospects.• Young consumers in growth markets haven’t been jaded by a hard hitting recession that those in developed markets have, and there is a serious risk of young people in developing nations becoming the ‘lost generation’.• Growth markets optimisms towards their economy, transfers into views on buying large purchases and provides a fantastic opportunity for UK and US companies looking to export into these markets.• However when exporting to growth markets, companies must understand the different business practices, regulations, infrastructure, cultural differences and population makeup - in Nigeria 60% of the population is under 25, which impacts product demand.• What is clear, is that the mobile device is very important in the lives of young consumers all over the world, which will be reflected in not only how we research these consumers, but also how marketers communicate and transact with them. Contact us at info@ondeviceresearch.com to add in your own survey questions
  • 28. Sarah Quinnsarah@ondeviceresearch.com+44 (0)207 278 6627www.ondeviceresearch.com @ondevice Follow us on Slideshare
  • 29. Sign up to our newsletter to receive the next wave of YPCC data & analysis
  • 30. On Device Research Services
  • 31. On Device Omnibus• Contact hard to reach people in emerging markets quickly and cost effectively• Survey up to 1,000 respondents per month in Brazil, India, China and Nigeria, UK and US• Robust, sample of 16-34 year old consumers• Online interface for data analysis 1-3 Countries 4-6 Countries Per Complete Total Cost for Per Complete Total Cost for 5 Discount (£) 1 Country (£) Countries1-2 Questions £0.50 £500 20% £0.40 £20003-5 Questions £1.00 £1000 20% £0.80 £40006-10 Questions £1.50 £1500 20% £1.20 £600010-15 Questions £2.00 £2000 20% £1.60 £8000
  • 32. On Device Research
  • 33. On Device Research uses the mobile Internet to gain access to consumer opinions at any time, place or countrySo far we’ve surveyed over 1.4 million consumers across 53 countries
  • 34. We make mobile research work…
  • 35. Some of our clients

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