Job security, terrorism worry consumers

Do you know what worries Indian consumers most? Job security and terrorism. The good news is: economic worries are receding.

These are some of the findings of the latest ACNielsen Asia Pacific Consumer Confidence Poll Survey.

The survey is based on online survey of 9,800 consumers in 13 markets across Asia-Pacific between November 20 and December 3. In India, 531 respondents participated in the survey.

In India, 39 per cent of the respondents are concerned about job security and 22 per cent are concerned about terrorism.

Worry about a worsening economy comes third with 21 per cent concerned about it. Fewer Indians — about 12 per cent — concerned over the probability of an impending war.

Indians also seemed most optimistic about a recovery within the next year compared to other countries in the region. However, hopes for a more immediate recovery have eroded significantly.

“The prevalent cautious optimism appears to have made consumers revise their expectations downwards,” said Sarang Panchal, executive director, ACNielsen India.

In India only 35 per cent believe that there will be recovery by the middle of 2003, down from 73 per cent in the last round of the study conducted in July.

Across Asia, Pacific consumers feel that it is unlikely to emerge from the present recession in the coming year. Fewer than half of those polled believed the recovery would occur by the end of 2003.

“With an absence of consistent positive news, people's expectations for recovery are in a holding pattern,” said Frank Martell, President, AC Nielsen Asia Pacific.

Opinions varied widely across the region as to when a recovery would occur. The most pessimistic were Indonesians, Japanese and Thais who continue to think that they are unlikely to emerge from the recession in 2003.

Most hopeful were Indians, Chinese and Singaporeans with more than half of the respondents expecting a recovery before the end of 2003.

“Though less expectant of an immediate recovery, consumers have become less tight-fisted than before,” Panchal said.

Fewer respondents within various income groups have deferred purchases in comparison to the previous round, with the higher income groups exhibiting a greater disposition towards investment and purchase.

Only major items of investment and purchase such as property, laptops and digital cameras have been deferred by an increased number of consumers. Most other items like cars, stocks and shares have postponed by fewer respondents.

In the coming months some items can expect to see greater consumer interest than others as 24 per cent of consumers plan to purchase a car, 21 per cent plan on buying a digital camera and 19 per cent plan investing in property and equities in the next six months.

The findings of the survey have made it clear that largely the economic outlook is impacting consumer spending pattern.

Items of discretionary expenditure such as luxury items, going out to pubs and vacations have suffered with consumers opting to spend less on them.

Consumers in Hong Kong, Korea and Taiwan have even spent lesser on essential household shopping. Indians, Chinese, Australians and New Zealanders however seem less frugal than their regional counterparts.