NIELSEN RELEASES QUARTER BY NUMBERS & CONSUMER CONFIDENCE INDEX, Q1’2018
Cairo, Egypt, July 2, 2018–
Nielsen, a leading global provider of information and insights about consumers and markets worldwide, announced that the Egyptian consumer confidence index was recorded at 85 points in Q1 2018, one point up from the previous quarter, and 21 points increase from Q4 2016 since the currency devaluation. As inflation eases in Egypt, consumers are increasingly able to open up their wallets to products and categories beyond day-to-day essentials, hence restoring some growth to the market.
In Quarter by Numbers (Q1 2018), a quarterly report that scans the markets across the region and reports on the latest consumer insights while diving into the FMCG landscapes, revealed a noticeable increase in the volume of sales in the Fast Moving Consumer Goods in Egypt, going up 10 percentage points.
Nielsen’s Quarter by Numbers (QBN) reports help our clients unlock opportunities amid a changing global market. Covering 62 countries across five regions, this quarterly series provides a global snapshot of what’s going on in our markets today. QBN provides a comprehensive understanding of top-level economic indicators, consumer confidence and the changing FMCG landscape, including total FMCG, channel, supercategory and manufacturer level.
“Not only was the jump in volume incredible, the Egyptian FMCG market volume growth shifted from negative figures to positive,” said Tamer El Araby, Managing Director for Nielsen North Africa & Levant. “This is resulting from a combined effect of decreased inflation coupled with hefty promotions, consequently easing affordability.”
Nielsen simultaneously released the first-quarter 2018 Conference Board® Global Consumer Confidence Survey (TCB Global CCS), which is produced in collaboration with Nielsen, shedding further light on the consumer side of the story.
Tamer El Araby noted “For the first time since 2016, there are signs of renewed hope in the stability and purchases, which are largely driven by the sense of security that Egyptians are feeling towards the state of their personal finances over the next twelve months.”
In Q1 2018, respondents were optimistic about their job prospects, with 38% believing they would be good or excellent in the next 12 months, a slight decline by two percentage points from the previous quarter. With an increase of one percentage point from the fourth quarter of 2017, half of respondents (51%) were confident about the state of their personal finances in the next twelve months. Sentiments towards immediate purchasing intentions remained the same at 29% in Q1 2018.
According to the QBN report, the year 2018 is projected to be a more prosperous year for many of the Africa and Middle East (AME) markets, which faced numerous economic, political and social challenges in 2017. Market conditions will continue to be fluid as reforms and changes filter through to consumers, playing out in adjusted shopping and buying behavior.
Equally, manufacturers and retailers are adapting to the altered consumer circumstances and actions, by redefining their positioning and offerings to meet the new and changing consumer needs, whilst in pursuit of growth.
As for consumer confidence in Africa and Middle East declined 1 point to 91 and remain lower than the global average. The decline was widespread – only South Africa and Egypt had a gain in confidence over the previous quarter. Morocco and the UAE experienced large declines by 13 and 8 points respectively, and Saudi Arabia, the largest economy in the region, saw a drop of 4 points. While confidence in the UAE remains strong, the situation in Morocco is quite the opposite, with consumers growing increasingly pessimistic. Moreover, 65 percent of Moroccan respondents said they were worried about job prospects, and nearly half were also apprehensive about their personal finances. Rising food prices is a major concern for Moroccan consumers, and curbed spending on discretionary goods.
Overall, despite the decline, the current confidence levels in Africa and Middle East remain sound compared to historical levels and are suggestive of continued business opportunities for consumer-centric businesses.