Your SlideShare is downloading. ×
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Nielsen Global Online Consumer Confidence Survey - Quarter 2, 2011

719

Published on

The Asia Pacific and Middle East/Africa regions suffer declines, but still remain most optimistic, with US consumer confidence dropping in Q2. Vietnam consumer confidence slumps to 97 points, but …

The Asia Pacific and Middle East/Africa regions suffer declines, but still remain most optimistic, with US consumer confidence dropping in Q2. Vietnam consumer confidence slumps to 97 points, but still well above the global index of 89 points. Vietnamese consumers echo the global “recessionary mindset” as caution can be seen in spending and saving behavior

Published in: Business, News & Politics
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
719
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 2nd Quarter, 2011 Global OnlineConsumer Confidence,Concerns and Spending Intentions A Nielsen Report July 2011
  • 2. More consumers slip back to recessionary sentimentlevels in second quarter • USA Consumer Confidence Drops • Asia Pacific and Middle East/Africa Regions Suffer Declines, but Remain Most Optimistic • Cash-Strapped Consumers Plan Further Cuts in All Discretionary SpendingGlobal online confidence declined to its lowest level in six The Nielsen Global Online Consumer Confidence Survey,quarters to 89 as economic recovery hit a stumbling block established in 2005, tracks consumer confidence, major concernsand recessionary jitters again reverberated around the world, and spending intentions among more than 31,000 Internetaccording to Nielsen’s quarterly Global Online Consumer consumers in 56 countries. Consumer confidence levels aboveConfidence Survey. and below a baseline of 100 indicate degrees of optimism and pessimism.“There wasn’t enough positive news to inspire confidenceamong global online consumers in the second quarter,” said Dr. In the latest round of the survey, conducted between May 20 andVenkatesh Bala, Chief Economist at The Cambridge Group, a June 7, 2011, regions of the Middle East/Africa and Asia Pacificpart of Nielsen. “Weak economic figures, slowing manufacturing posted the steepest declines of 12 and nine points respectivelyperformance and inflation in Asia, an intensifying debt crisis in compared to last quarter, but current figures are aligned withEurope and continuing political instability in the Middle East year-ago trends. And confidence levels in Europe (74) and Latincombined with rising household expenses in the U.S. have taken America (91) remained largely unchanged edging up one indextheir toll on consumers’ fragile confidence. Hopes for full global point each. Despite its nine point dip, Asia Pacific remained therecovery in the next 12 months substantially weakened in Q2 most optimistic region at 98 points, followed by Middle East/as the majority of consumers around the world remained in a Africa at 94 points.recessionary mindset.”Copyright © 2011 The Nielsen Company.1
  • 3. Recessionary Mindset“Second quarter data revealed that consumers have retreatedback into a recessionary mindset and they are tightening theirbelts again after the last 12 months of slowly improving, butcautious spending,” said Dr. Bala. “According to the latestsurvey, consumer allocation intentions declined globally in alldiscretionary areas from investing in stocks and buying clothesto taking holidays and upgrading technology compared to three 47% 45%months ago. For the outlook to improve for the rest of theyear, consumers globally will look to greater stability in foodand energy prices, as has begun to occur recently, along withabatement of region-specific concerns.” 32% 35%In another indication of how consumers are prolonging therecession sentiment, 58 percent of global online consumers saidthey are still in a recession – the most in the past year. Of those,more than half (51%) believe they will still be in a recession in 32% 34%a year’s time. The number of Asia Pacific online respondentswho said they are currently in recession rose from 37 percentin Q1 2011 to 45 percent in Q2. And in Middle East/Africa, the 29% 29%economic recession lives on for 74 percent of online respondents– an increase of nine points from three months ago. 28% 28% 22% 26% 19% 21% 51% 50% 17% 21% 31% 29% 16% 15% 18% 21% 9% 11% 3% 3% Copyright © 2011 The Nielsen Company. 2
  • 4. Spending Intentions DeclineTwelve months ago, 35 percent of global online consumers More consumers globally are feeling cash strapped as cost ofsaid the present was a good time to buy the things wanted and living expenses and rising food and energy inflation continueneeded, but this figure dropped to 27 percent in second quarter to squeeze household budgets. Rising food prices was againwith significant pull back among North American and Asia consumer’s top global concern, surpassing the economy as thePacific consumers. At the start of this year, 27 percent of North top concern for the second quarter in a row. Thirty-one percentAmerican consumers said it was a good time to buy, but this of U.S. consumers said they have no spare cash for discretionaryreceded to 20 percent last quarter. Likewise, one year ago, 40 spending, along with 25 percent of Middle East/Africa consumerspercent of Asia Pacific consumers felt it was a good time to buy and 22 percent of Europeans.things needed and wanted, but this figure fell to 32 percent in Q2. 13% 12% 8% 8% 12% 10% 7% 7% 10% 8% 6% 6% 9% 7% 6% 5% 8% 11% 3% 4%Copyright © 2011 The Nielsen Company.3
  • 5. U.S. Consumer Confidence DropsConsumer confidence in the U.S. fell five index points to 78, quarter,” said Todd Hale, SVP Consumer & Shopper Insights,two points lower than the previous consumer confidence low Nielsen U.S.of 80 points in the first half of 2009 at the height of the global “On the U.S. retail front, the top 20 percent of households haverecession. Canada’s consumer confidence index holds steady at exited the recession, while all other households are showing101, dropping just one point from year ago and previous quarter continued restraint in shopping trips and spending,” continuedfindings. Hale. “Consumer-packaged-goods dollar sales were off 0.4“With rapidly rising gas prices, inflationary pressures at percent for the 52-weeks ending June 11, 2011, while dollar salescheck-out, continued woes in the housing market with home for the latest quarter within that 52-week period were up 0.5foreclosures and declining property values, unsettling weather percent – the second consecutive quarter of at least modestpatterns creating flooding and tornado damage and a stagnant growth.”job market, confidence among U.S. consumers fell in the second Copyright © 2011 The Nielsen Company. 4
  • 6. Slowdown Impacts Outlook, But Asians RemainOptimisticIndian consumers (126 index), despite a five point quarterly bills. These are set to soar with electricity, water and gas prices alldecline, remained the most positive about job prospects and increasing,” said Chris Percy, Managing Director, Nielsen Pacific.personal finances and have consistently reported the highest “And the January floods, which restricted supplies of fruit andconsumer confidence scores since Nielsen consumer confidence vegetables, had lingering effects on produce costs, causing foodtracking began in 2005. “A host of factors are weighing heavily prices to rise. Belt-tightening is the norm for many households ason the Indian consumer’s mind. While still clearly the most price increases erode family budgets.”optimistic across the globe, heated price inflation, fuel price Malaysia (110), New Zealand (97), Philippines (115) andhikes and an uncertain global economy are acting as constraints South Korea (52) posted quarterly confidence increases andto a buoyant outlook,” said Justin Sargent, Managing Director, Hong Kong (107) remained flat. China’s consumer confidenceNielsen India. “We are likely to see adjustments to the purchase declined three points quarterly to 105 and is four points off itsbasket in terms of greater ‘value-consciousness’ guided by robust year ago index of 109. “The slight drop in consumer confidencedemand, but a large pull back in terms of overall spending is in China is reflective of inflation, which is still a top-of-mindunlikely unless inflation continues unabated.” issue for consumers. While inflation has continued to creep upEight out of 14 Asia Pacific markets posted quarterly declines in Q2 in the last three months, there aren’t any signs of slowdown inwith steepest declines from Australia (-7 points) and Singapore consumption – even in discretionary categories, as observed in(-6 points). Australia’s index has been on the decline since Q3 the second quarter of 2011. The continued strength in domestic2010. “Australian households are being hit hard with unrelenting consumption is a reflection of continued overall optimism in theprice increases across the board. From July 1, households will be hit economy, driven by growth in income levels,” said Karthik Rao,by one of the biggest rises in the cost of living in decades – utility Managing Director, Nielsen Greater China. 22% 59% 59% 19% 14% 7% 13% 14% 14% 9% 6% 6% 27% 7 11% 43% 40% 10% 10% 5% 6% 48% 24% 9% 8% 4% 6% 37% 20% 39% 38% 9% 7% 3% 4% 13% 3 8% 36% 37% 52% 22% 26% 24% 35% 15% 46% 46% 29% 9 15% 29% 32% 30% 30% 44% 35% 24% 23% 18% 25% 27% 10% 15% 6% 31% 38% 18% 9% 12% 13% 7% 5% 16% 10% 47% 41% 30% 12% 11% 11% 32% 40% 39% 16% 2% 2% 3% 3% 8% 4%Copyright © 2011 The Nielsen Company.5
  • 7. Middle East/Africa Region Confidence DeclinesLargest confidence declines in Q2 were recorded in Egypt liquidity in the market,” said Arslan Ashraf, Managing Director,(-10) and Saudi Arabia (-11), which had enjoyed the biggest Nielsen Saudi Arabia. “The package created a lot of positivityincreases in Q1 2011, but are trending consistently with year-ago where people became more optimistic about the job prospects asperformances. well as their personal finances.”“In Egypt, post-revolution optimism subsided and was replaced The dip in Saudi Arabia confidence is also a result of decreasedby a more realistic view of the country situation and a higher confidence in the economy where almost twice the consumersawareness of the economical aspect of the after revolution have said that economy is their biggest concern over the next sixperiod,” said Ram Mohan Rao, Managing Director, Nielsen Egypt. months compared to the start of the year. Political instability has become less of a concern for Saudi’s since the fizzling out of theThe Saudi consumer confidence index stabilizes to the levels of “Day of Rage” that was planned in the Kingdom on March 11.Q4 2010 after showing an 11 point increase in Q1 2011. Despitethe dip, the Saudi consumers continue to be one of the top 10 United Arab Emirates increased one index point from lastmost optimistic consumers across the globe. “In Saudi Arabia, the quarter to 110 maintaining its 12 point jump from six months ago.Q1 surge in optimism caused by the additional cash injected into South Africa (86) and Pakistan (88) show consistent quarterlythe market by King Abdullah was toned down as consumers were performances, but are down slightly from year-ago trends.also hit by increasing food and rental inflation as a result of more 38% 36% 11% 10% 5% 7% 16% 7% 11% 10% 5% 7% 28% 8% 8% 15% 20% 10% 10% 5% 6% 45% 5 16% 10% 9% 5% 5% 45% 25% 24% 30% 7% 5% 4% 6% 14% 4 10% 18% 25% 50% 17% 20% 22% 28% 8 12% 35% 46% 44% 23% 17% 22% 33% 32% 40% 30% 32% 22% 18% 20% 29% 9% 22% 5% 9% 11% 5% 2% 18% 17% 25% 16% 14% 7% 43% 47% 24% 7% 5% 7% 29% 28% 36% 12% 4% 7% 5% 4% 18% 12% Copyright © 2011 The Nielsen Company. 6
  • 8. Europe’s Increasing Utility Bills and Inflation areTop ConcernsIncreasing utility bills and inflation again eclipsed the economy Nielsen Regional Managing Director, Russia & North-Easternand job security as main concerns in Europe. It’s the everyday Europe. “But growing prices and utility bills are reducingchallenges of paying household bills and feeding families that are consumer’s expectations to increase future purchases as Russianskeeping consumers in Europe awake and worrying at night. The continue to be weary on the strength of their disposable income,region includes eight of the top 10 lowest consumer confidence which continues to hold down overall consumer confidencescores in second quarter. levels.”In Greece, ongoing economic turmoil amid the escalating debt In a welcomed sign of some positive news, while still below thecrisis and widespread domestic protests resulted in a further European average of 74, France’s eight point confidence boostconsumer confidence decline of four points in Q2 for the world’s from 61 to 69 points was a result of the economy’s one percentmost pessimistic country where confidence levels plummeted to growth in Q1 – the largest growth increase France experienceda new low of 41 points. since Q2 2006. France’s economic growth spurt at the start of the year exceeded expectations and the government isTurkey suffered the biggest decline in the region with a drop of bullish about a two percent growth by the end of the year. Thissix index points to a score of 77. “The recent decline is mainly due confidence has rubbed off on French consumers where one into the anxious anticipation before the elections that took place three (33%) in Q2 expect personal finances for the coming yearon June 12. The tense environment, also supported by unrest to be good/excellent – up from 25 percent in Q1 2011.caused by terrorism, affected the perception on political stabilityand confidence,” said Paul Walker, Managing Director, Nielsen Consumer confidence in the United Kingdom also spiked fiveTurkey. points in Q2 to 72 with consumer’s optimistic spirits buoyed by the warmest spring weather in years, several public holidays andGerman consumer confidence dropped four index points in Q2 the royal wedding mania.to 88 due primarily to increasing prices and the fear of inflationhampered by the Greek crisis and the Fukushima effect, butthe German economy continues to show a bold recovery. “TheGerman economy has now been growing strongly for more thanone year. Unemployment rates are declining and job prospectsare good,” said Ivar Michaelsen, Managing Director, NielsenGermany. “Overall confidence is still above the last two yearsand we expect this to be a temporary decline only.”Consumer confidence levels in Russia remain low, droppingto 82 points since the beginning of 2011. Low perceptionson the state of personal finances combined with rising livingcosts have resulted in reluctance by consumers to spend.“Overall, consumers in Russia feel more optimistic on themacro environment as job prospects in the next six monthsare favorable compared to last quarter,” said Dwight Watson,Copyright © 2011 The Nielsen Company.7
  • 9. 32% 34% 11% 13% 8% 11%33% 20% 10% 9% 7% 6%27% 7 10% 29% 28% 10% 8% 6% 7%55% 22% 10% 7% 6% 5%41% 22% 32% 32% 9% 6% 3% 4%18% 8 14% 24% 27%62% 2 23% 25% 26%57% 30% 56% 53%40% 24% 17% 19% 31% 28%53% 42% 13% 18% 21% 25%40% 12%31% 10% 5% 6%22% 13% 26% 20% 22% 20%18% 12% 47% 48%35% 11% 8% 9% 23% 29%37% 12% 3% 3% 2% 2%12% 7% Copyright © 2011 The Nielsen Company. 8
  • 10. Latin American Regional Confidence Rises One PointLatin America consumer confidence edges up one index point to Country Manager, Nieslen Peru. “The possibility of drastic91, driven by positive quarterly performances in Argentina, Brazil economic and political changes has spurred some fear in theand Peru. Argentina increases five points to a score of 93 – a minds of Peruvians.”level reported for three quarters straight in 2010. The growth is Brazil increased one point to an index of 96 in second quarterdriven by consumer’s positive outlook in regard to their personal and Mexico held steady at 80 for two quarters straight.finances, which is aligned with a 3.5 percent rise in shopping Colombia’s drop of two points since last quarter to 89 is drivenbasket consumption tracked by Nielsen. by several factors: a harsh winter, which led to an increase inPeru, a new market added to the Nielsen Global Online Survey food prices, a rise in interest rates and a nine percent drop in thein Q2, delivers the highest index in the region with a score of Colombian stock market.99. “The study results show the macroeconomic boom that the Two additional Latin American markets were added in secondcountry has experienced in the last few years. Nevertheless, quarter: Chile, which delivered a consumer confidence index ofthere is clear uncertainty among consumers with the recent 91 and Venezuela, which scored an 85.electoral outcome during Q2 2011,” said Armando Uriegas, 25% 34% 32% 12% 11% 9% 8% 13% 12% 8% 8% 8% 13% 3 3% 20% 22% 10% 9% 7% 11% 53% 15% 10% 9% 4% 8% 50% 25% 29% 34% 3% 9% 9% 3% 11% 9% 32% 35% 42% 13% 36% 41% 49% 9 31% 40% 52% 47% 34% 21% 22% 37% 32% 48% 38% 23% 17% 20% 33% 33% 12% 5% 6% 7% 22% 13% 21% 14% 19% 15% 20% 15% 46% 48% 29% 8% 3% 6% 29% 34% 37% 9% 1% 1% 2% 3% 20% 12%Copyright © 2011 The Nielsen Company.9
  • 11. Copyright © 2011 The Nielsen Company. 10
  • 12. Country Abbreviations:Argentina AR Israel IL Spain ESAustralia AU Italy IT Sweden SEAustria AT Japan JP Switzerland CHBelgium BE Latvia LV Taiwan TWBrazil BR Lithuania LT Thailand THCanada CA Malaysia MY Turkey TRChina CN Mexico MX United Arab Emirates AEChile CL Netherlands NL Great Britain GBColombia CO New Zealand NZ Ukraine UACroatia HR Norway NO United States USCzech Republic CZ Pakistan PK Venezuela VEDenmark DK Peru PE Vietnam VNEgypt EG Philippines PHEstonia EE Poland PLFinland FI Portugal PT Region Abbreviations:France FR Romania RO AP Asia PacificGermany DE Russia RU EU EuropeGreece GR Saudi Arabia SA LA Latin AmericaHong Kong HK Singapore SG MEAP Middle East, AfricaHungary HU South Africa SA NA North AmericaIndia IN Singapore SGIndonesia ID South Africa ZAIreland IE South Korea KOAbout the Nielsen Global Online About NielsenSurvey Nielsen Holdings N.V. (NYSE: NLSN) isThe Nielsen Global Online Survey was a global information and measurementconducted between May 20 and June company with leading market positions7, 2011 and polled more than 31,000 in marketing and consumer information,consumers in 56 countries throughout television and other media measurement,Asia Pacific, Europe, Latin America, the online intelligence, mobile measurement,Middle East, Africa and North America. trade shows and related properties.The sample has quotas based on age Nielsen has a presence in approximatelyand sex for each country based on their 100 countries, with headquarters in NewInternet users, and is weighted to be York, USA and Diemen, the Netherlands.representative of Internet consumers For more information, please visitand has a maximum margin of error of www.nielsen.com.±0.6%. This Nielsen survey is based onthe behavior of respondents with onlineaccess only. Internet penetration ratesvary by country. Nielsen uses a minimumreporting standard of 60 percent Internetpenetration or 10M online populationfor survey inclusion. The Nielsen GlobalOnline Survey, which includes the GlobalOnline Consumer Confidence Survey, wasestablished in 2005.For more information visit www.nielsen.comCopyright © 2011 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo aretrademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and servicenames are trademarks or registered trademarks of their respective companies. 11/351011

×