|
29 August 2006
Hong Kong
In tandem with a growing economy and improving job market, Hong Kong consumers’ confidence continues to improve year on year. Meanwhile consumers remain cautious about the job prospects.
According to ACNielsen, the world’s leading market research and information company, the 2006 ACNielsen Global Consumer Confidence Index reached 98, on par with the November 2005 study. India leads the world in the 2006 ACNielsen Global Consumer Confidence Index with a score of 131, followed by Norway (130) and Denmark (127). The Hong Kong consumer confidence index increased by five points over the past six months, hitting 111 and making it the world’s ninth most optimistic market and substantially above the world’s average. (Chart 1)
“India tops the world for the third time in a row since the Index was established in early 2005 with a high score of 131. India’s booming economy shows no signs of slowing down, making the nation the world’s most optimistic once again,” said Ms Fanny Chan, Managing Director, ACNielsen Hong Kong. “As to our home town Hong Kong, with the positive economic and business outlook, people have become more upbeat and positive in the first half of 2006.”
Major concerns
While confidence has sustained globally, consumers are not complacent, and continue to cite the Economy (47%), Health (37%) and Job Security (31%) as their major concerns for the next six months, with varied levels of importance by regions. In Hong Kong, the Economy (64%) ranks highest, followed by Job Security (48%) and Health (37%). (Chart 2)
“The soaring fuel price and rising interest rate have imposed pressure on corporations, along with the rising rental and labour costs, Hong Kong consumers remain cautious about the fundamentals like job security.” Chan added.
The Economy
Led by Thailand (77%), Malaysia (71%) and Indonesia (70%), eight of the 10 markets most concerned for the Economy all hail from Asia Pacific. Hong Kong ranked fourth in the world in their concern about the Economy.
Health
Ever since reports of outbreaks of the avian flu first appeared in Europe, on the tail of occasional mad-cow incidents, consumers on the European continent have shown increasing concern for their own health. Led by Hungary (69%), the level of concern about health in Europe surpasses their North American and Asia Pacific counterparts. A new addition to the global survey, Vietnam (44%) is the only Asian countries listed as the top 10 most concerned about Health.
Job Security
Vietnam, ranked 1st on the global list, with nearly three quarters of Vietnamese concerned about job security, followed by Hungary (59%) at a distant second, and Korea (55%). Other Asian markets occupying the list were Hong Kong, Singapore and the Philippines.
The Least Optimistic
The least optimistic countries in Asia Pacific are Taiwan (80), Japan (79) and South Korea (54) with Korea recording the lowest consumer confidence index score in the world and nine in 10 consumers surveyed reckon it is not a good time to spend on things that they need in the next 12 months . Similar sentiment is shared among consumers in Taiwan (80%).
“In South Korea, consumers have been impacted by global oil prices and the rising Won in the past few months, and a stagnant real estate market has also fuelled insecurity and dampened consumer confidence overall.”
Spending sentiment in the next 12 months
More than half of online consumers globally consider now not to be a good time to buy things they want over the next 12 months. However, there are always big spenders, among those the North Americans (48%), despite rising national concern for personal debt and soaring fuel prices.
By markets, consumers most likely to go on a spending spree in the next 12 months hail from Denmark (74%), Norway (65%) and India (61%) followed by over half of consumers in Hong Kong (54%) who think it is a good time to indulge themselves in some retail buying therapy, surpassing the global or regional average to become the fifth most ready to spend in the world. (Chart 3)
Meanwhile one fifth of North American consumers claimed they don’t have spare cash compared to the previous survey, followed by 13 percent of Europeans and eight percent of Asia Pacific consumers. Koreas top the world with 15 percent who claim not to have spare cash, and nine percent of Hong Kong people claiming the same.
Asia Pacific has the most savers in the world
Continuing the trend from previous surveys, the world’s top savers are still to be found in Asia Pacific. 54 percent of Asia Pacific consumers will put their spare cash into savings, compared to 37 percent of North Americans, 29 percent of Europeans or 40 percent globally. “Asian nations occupy every position in the “Top Ten Global Savers” list with Thailand (70%) topping the global ranking with the highest percentage of savers and a significant 15 percentage points increase compared to six months ago,” Ms Chan added. Six in 10 consumers in the Philippines, Singapore and Taiwan also opt to save their spare cash. Hong Kong ranked 6th with 59 percent claiming to save.
“Economic and cultural factors influence Asians’ penchant to save for a rainy day, with levels higher than other part of the world. With more than a third of consumers in Asia Pacific concerned about job security, putting spare cash into saving is certainly the safest financial option for consumers who are insecure about their jobs,” said Ms Chan.
When consumers were asked how they spend their money after covering essential living expenses, Holidays/Vacations topped the spending list, with 34 percent of global online consumers choosing it, followed by a third for Out of Home Entertainment, and Paying off debts/credit card bills/loans.
Spending habits and priorities varied by markets with Out of home entertainment (43%) and New clothes (41%) topping the spending list of Hong Kong consumers, ranking 6th and 9th in the world respectively.
It’s worth mentioning that investing in shares and stocks has become a major channel for consumers in Asia Pacific to spend spare cash, with seven of the top ten countries that invest in the financial markets all hailing from Asia Pacific. This trend is led by Taiwan (42%), Hong Kong and India (each 40%) where the level of interest in investing in stock/shares is among the world’s highest. (Chart 4) “People in Hong Kong are opportunistic and fast movers, riding on the recovering economy, people across the board are tempted to take advantage of it through the stock market,” Ms Chan observed.
The ACNielsen Online Consumer Confidence and Opinion Survey is the largest half-yearly survey of its kind aimed at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe. The ACNielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend. The latest survey, conducted in late May/early June, polled about 21,780 internet users in 40 markets from Europe, Asia Pacific, North America to the Baltics.
Markets Covered
Australia (Aus), Austria (AT), Belgium (Bel), Canada (Can), Denmark (Den), Finland (Fin), France (Fra), Germany (Ger), Greece (Gre), Hong Kong (HK), India (Ind), Indonesia (Indo), Ireland (Ire), Italy (Ita), Japan (Jap), Korea (Kor), Malaysia (Mal), Netherlands (NL), New Zealand (NZ), Norway (Nor), Philippines (PH), Poland (Pol), Portugal (Por), Russia (Rus), Singapore (SG), South Africa (SA), Spain (Spa), Sweden (Swe), Switzerland (Swi), Taiwan (TW), Thailand (TH), Turkey (TR), United Kingdom (UK), United States (US), Czechoslovakia (Cze), Hungary (Hun), Vietnam (Vnm) and the Baltics (Bal).
About ACNielsen
ACNielsen, a VNU business, is the world’s leading marketing information provider. Offering services in more than 100 markets, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns. To learn more, visit www.acnielsen.com.
Chart 1
Chart 2
Chart 3
Chart 4
Back to Top
|
