Indian consumers are highly optimistic about the quality of life and the stock market. However, they are pessimistic about the prevailing employment situation in the country and the continuity of regular income.
These are views gathered by MasterCard International's MasterIndex survey on consumer confidence in SAMEA Region. Along with India, this study tracks the consumer confidence in Egypt, Kuwait, Lebanon, Saudi Arabia, South Africa and the United Arab Emirates.
The consumer confidence index in India stands at 63.5 per cent, just marginally above the pessimistic level, with the maximum confidence given to the quality of life (77.4 per cent) and the stock market (70.6 per cent). Indian respondents gave the lowest marks to the employment situation (44.4 per cent).
Contrary to the pessimism among Indian consumers, those in Kuwait (90 per cent), UAE (87.1 per cent) and Saudia Arabia (77.8 per cent) have an optimistic outlook on all fronts, particularly on regular income.
In all 2,800 respondents from across the SAMEA region, were surveyed in February 2004, tracking sentiment on five key variables: employment, economy, regular income, stock market and quality of life.
MasterCard International's surveys are seen as valuable tools in understanding and anticipating the shifts in consumer sentiment, as well as identifying the market paradigm.
For instance, in June 1997 MasterIndex revealed a decline in consumer confidence in the Asia-Pacific region, just a month prior to the devaluation of the Thai baht that triggered the regional financial crisis.
Seventy-three per cent of Indian consumers favoured saving rather than enjoying wealth today, as opposed to the Kuwatis who favour enjoying their wealth today. Saudis, South Africans and Lebanese were divided on the issue.
"In these periods of volatility and tremendous change, not just in this region but across the globe, it is even more critical to capture trends on consumer sentiments," said MasterCard International (South Asia, Middle East & Africa) senior vice president (sales & business development) Denzil Lawson.
Among things people aspire to buy, Indian consumers' first preference is to opt for a home or property, similar to the Saudi psyche.
Just about 8 per cent of Indian respondents favoured buying a car, while 6 per cent favoured travel. But across all the seven markets, the first preference was to own a home than a car.
In response to who makes the key investment decisions in the household, over 40 per cent of Indian consumers replied "myself," while 24 per cent said it was a joint decision of "husband and wife."
Only 8 per cent said investment decisions are made by parents. Over 85 per cent of respondents from the SAMEA region said that they do worry about money.
There is increasing importance being given to careers over personal life in India. Over 60 per cent of Indian respondents chose career over personal life. This is as opposed to the rest of the region where Egyptians (67 per cent) and the UAE (64 per cent) chose personal life over career.
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