More Than Three In Five Online Respondents In India Say They Believe The Country Is In an Economic Recession
Consumer confidence in India remained at 119 in Q3 2012, consistent with the previous quarter, according to global consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy. The levels of optimism reported by Indian respondents this quarter are three points lower than the third quarter in 2011, where India was leading the global sentiment at 121 points. In Q3, India and Indonesia (119) reported the highest index scores globally, followed by Phillippines (118).
“While the second quarter of the year, indicated a growing anxiousness amongst Indianconsumers, the third quarter echoes that sentiment across key parameters for the Indian consumer today,” said Piyush Mathur, president, Nielsen India Region. “Although the sentiment of rising inflation combined with other economic and personal pressures have taken a toll on consumer confidence, the Indian consumer seems to have reconciled with the challenges. In a typically resilient fashion, they have adopted various strategies to counter inflation through a much keener effort to seek better deals at the point of sale and by timing bigger ticket purchases.”
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, tracks consumer confidence, major concerns and spending intentions among more than 28,000 Internet consumers in 56 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism respectively.
In the latest round of the survey, conducted between August 10 and September 7, 2012, overall confidence rose in 52 percent of global markets measured by Nielsen, compared to a 41 percent increase in the previous quarter. Consumer confidence in Q3 2012 increased in 30 of 58 markets, declined in 19 and remained flat in seven.
Perceptions of Job Prospects, Personal Finances
In Q3r almost four in five (77%) online respondents in India are optimistic about their job prospects, consistent with Q2 2012 and down four points (81%) from the same quarter last year. Optimism over personal finances declined one point to 76 percent from the last quarter. Globally, Indian online consumers (77%), followed by online consumers in Philipines (72%) and Thailand (72%), are the most optimistic about their job prospects in the next twelve months.
Job Security and Economy Remain Key Concerns
Nielsen’s survey shows that job security (22%) and state of the economy (14%) continue to be the biggest concerns for Indian respondents. A fair work life balance (8%), followed by the well-being of parents (7%), are the two other biggest concern areas. Health and fitness is the second biggest concern for one in ten online respondents (10%).
More than three in five online respondents (62%) said they believe India is going through an economic recession this quarter. Q3 results show a nine percentage point increase over Q2 2012, and an eighteen percentage point increase over sentiment for the same period last year (44% in Q3 2011).
Discretionary Spending & Savings
Intended discretionary spending and savings remains the same as the last quarter with 62 percent respondents said they put spare cash into savings, slightly fewer than two in five (39%) said they would invest in new technology products , while 35 percent reported they spend their spare cash on new clothes. This quarter using spare cash for vacations declined to 33 percent from 36 percent last quarter.
Just under half (49%) of Indian respondents said they consider it a good time to buy things they want and need. This has increased by one percentage point from the previous quarter and decreased five percentage points for the same period last year (54% in Q3 2011). Slightly less than four in five (79%) online respondents indicated that they have changed their spending habits to save on household expenses from last year, up three percentage points from the same quarter last year (76%). In order to save on household expenses, the top three actions reported are to spend less on new clothes (53%), savings on gas & electricity (52%) and cutting down on out of home expenditure (40%).
About the Nielsen Global Survey
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted August 10 – September 7, 2012 and polled more than 29,000 online consumers in 58 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. The China Consumer Confidence Index is compiled from a separate mixed methodology survey conducted among 3,500 respondents in China. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com