As the full force of the economic downturn has hit countries around the world, consumer confidence has taken a dive as people worry job stability and paying their bills. And while China has not been immune from the recession, Chinese consumers seem to be enduring the challenges better than most, according to new research from Nielsen.
To be fair, consumer confidence dropped 7 points in the March 2009 Nielsen Consumer Confidence Index from September 2008. But that drop is relatively small compared to most other countries, and China ranks tenth overall. Chinese consumers are quietly optimistic about the next 12 months, thanks in part to an economy that is maintaining GDP growth – albeit modest – and a huge government stimulus package that was implemented earlier this year. Urban unemployment remains below 5 percent, and Chinese, like most Asians, have been saving their money to adapt to the changed environment.
With huge potential domestic demand and a global economy that is showing some early signs of life, China will continue to be an attractive place for both local and foreign businesses to flourish in the foreseeable future.
Read the full analysis into Chinese consumers’ quiet optimism in the current issue of Consumer Insight.