According to ACNielsen’s latest Consumer Confidence Index (CCI) survey, Indians are riding high on consumer confidence and lead the CCI for the fourth time in a row. The survey was conducted in 46 countries, and the second and third places were taken by Norwegians and Danes. Vietnam and Thailand achieved the biggest increase of 12 points from the last index.
“Undoubtedly India is riding on the crest of an economic boom. Recording the highest confidence index once again reaffirms the solid performance of the market in terms of economic growth, job prospects and the booming young adult population, which will soon become the major driving force in the global economy,” said Sarang Panchal, Executive Director, ACNielsen, South Asia.
“Vietnam is another market to watch, as the country’s entry into the WTO starts to impact, along with a rapidly growing workforce and income levels. There is simply huge potential to be found in Vietnam, a country with the world’s 13th largest population, and more than 50 per cent of them under the age of 30,” added Panchal.
Indians are bullish about the job market (95% rating it excellent or good), and the state of their personal finances in the next year (87%). On the other hand, the world’s least optimistic markets are mostly from Europe, although South Koreans (56%) remain at the bottom of the list. Across Asia Pacific, Japan and Taiwan are among the least optimistic, recording an index of 71 and 80 respectively.
While confidence has sustained globally, consumers across the globe continue to cite the Economy (39%), Health (34%) and Job Security (32%) as their major concerns over the coming six months, although the level of concern for Economy and Health has declined moderately since the first half of 2006. But for Indians it is the increasing terrorist attack that has made Terrorism (30%) as the one of the largest concern area though globally, only 15 percent of consumers considered terrorism a major concern, led by India (31%), the UK (26%), and Denmark (25%).
“Looking at the way terrorism is hitting the country – whether it is Mumbai or Guhwahati or even Kashmir Valley, terrorism is surely a big concern that the country is facing. Though the country’s intelligence and security forces are trying their best to curb this menace and have already beefed up securities in every public place, people are feeling a security threat,” informed Panchal.
“Since the last few years, the booming economy has increased liquidity. The best way is to improve the standard of living is to improve the home conditions and indulge in new clothes. Home and clothes are extensions of one’s personality. Indians are not ready to compromise but are game to exhibit to the world a flamboyant, high quality living that they can now afford,” Panchal said.
Health is one of the top concerns for third world consumers, but the level of concern has declined substantially for Europe, despite six out of 10 markets originating from the region. Hungary topped the world as the most concerned about health in the first half of 2006 and has been overtaken China as the world’s most concerned about health (67%) this time round, followed by Czechs (51%) and Finns (49%).
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 October/November, polled about 25,408 internet users in 46 markets from Europe, Asia Pacific, North America, the Baltics and the Middle East.