Local consumers lead global confidence rise

RESEARCH   CONSUMER CONFIDENCE   NIELSEN

Hong Kong - Hong Kong recorded the highest consumer confidence rise among 29 markets by the end of 2009, a Nielsen Global Consumer Confidence Survey found.

The report shows 73% of Hong Kong consumers said they are no longer in recession - a 33% increase between June and December 2009.

Oliver Rust, managing director, Hong Kong of The Nielsen Company, said this demonstrates the resilience of the Hong Kong consumers to adapt to the changing environment to come out of recession.

"Hong Kong confidence is being driven by a more positive outlook on job prospects and personal finances which is boosting consumption and spending," he said.

"Consumers have been encouraged by job creation in construction, import-export and local development in the past six months."

Hong Kong's younger generation, aged 24 and below, are less optimistic compared to other age groups.

Rust explained this age group includes first job-seekers and university graduates who have had a tough time entering the work force in the past two years and are facing more competition from mainland Chinese job seekers.

In terms of spending habits, locals topped global ranking for putting spare cash into savings and ranked second after China for investing in stocks or mutual funds.

Their spending choices also corresponds with strong growth in advertising spending in a sector especially for toiletries, healthcare products and entertainment.

"Confident Hong Kong consumers also continued to loosen their purse strings in Q4 spending more on out-of-home entertainment, new clothes, and holidays/vacations," Rust said.

He commented that when the consumers become more confident on their spending, the key for businesses is to understand the change in their purchasing and consumption patterns and the key drivers for success.

The survey was conducted among more than 17,500 Internet users in 29 markets between 4-18 December 2009. 

Eight of the top ten most confident markets in the fourth quarter of 2009 came from Asia Pacific with Indonesia and India ranked top, while consumers in two of Asia's most developed markets, South Korea and Japan, were the least confident.

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