A recent Nielsen survey portrays that Asia Pacific consumers are ready to spend their way out of recession. Renewed willingness to spend as 2010 progresses is found in China, Brazil, India, Singapore and Hong Kong. Stock market investments and increased Singapore Phone Number List savings are a result of consumers being more confident in the market, including spending on luxury items such as vacations, clothes and entertainment. One MasterCard survey portrayed that entertaining and dining is where Asian Pacific consumers will put their money in the next six months, showing extreme resilience in the face of the global recession.
Consumer confidence has surged in the first quarter of 2010, returning consumers to positive territory. In the last 6 months, the majority of consumer sentiment in Asia pacific has shifted their gears from recession into recovery. In this climate of economy, the sentiment is correlated to actual sales. In Australia, for instance, the confidence of consumers rose eleven points in the
Singapore Phone Number List third quarter of last year. Strengthening economic conditions resulted in the Reserve Bank of Australia to increase its rates, becoming the first country to do this. This resulted in increased sales of 2% in both August and September of 2009 in FMCG or fast moving consumer goods. Since Nielsen tracked the recession in January 2009, there is a buzz that it is currently at its lowest levels.
Asia Pacific spending has always been a key indicator of confidence in business and has made a rebound faster than analysts have expected. Across many Asian Pacific markets, sales of FMCG has made a significant increase as Asian consumers are starting to purchase items which are discretionary after a long period of spending within the parameters of a budget. In October of 2009, sixty-six percent of worldwide consumers claimed that their economy was in Singapore Phone Number List recession compared to seventy-seven percent in April of 2009. For many consumers in Asia Pacific, however, the recession has become a thing of the past. 87% of Chinese say that their country is out of the recession while 60% of Hong Kong and Australian citizens say the same. Half of Indians believe that recession has ended in their country as well.
According to another survey conducted by the MasterCard Worldwide Index of Consumer Purchasing Priorities, the top spending priorities of Asia Pacific consumers are 49% on fashion and accessories 36% on wellness and fitness, 34% on their children's private tuition, 34% on extra curricular activities and 34% as well on consumer electronics. In Hong Kong, thirty percent less consumers say that their country is in a recession. In the most recent survey, thirty two percent of Honk Kong consumers said that they are in a recession compared to sixty percent in June of 2009. After holding back on spending for many quarters, with the Hang Seng property index on the increase, Hong Kong consumers are currently beginning to open their wallets once more.
Increased spending on discretionary items such as home entertainment, technology, holidays and new clothes is on the rise, which is a stark contrast to their cutting back on spending on these items a year before. Consequently, many other sectors of the Singapore Phone Number List economy are seeing a fresh recovery, including finance, property and high ticket retailing. A recovery on the FMCG remains to be seen, however as the sales of these goods have remained somewhat unchanging. Last quarter's 6-point increase in China was propelled by significant improvements in the personal income and local job possibilities in the country. Six out of ten Chinese describe their job prospects excellent when asked to rate the way they foresee the next 12 months, which is a fourteen percent increase compared to the 2nd quarter. China's two tier-cities posted up to 22 percent increased consumer confidence compared to the quarter before.
Nielsen witnessed in July that Chinese consumers felt the economy was on its lowest level and was on the way to recovery. In the 3rd quarter, there is an extension of this optimism. Chinese consumers are still hesitating to spend money but there is a willingness to try new products. Thus, the companies which will focus on introducing innovative new products may be the ones to drive consumers to purchase more items throughout the country. The survey further says that in the last quarter of 2009, Asia Pacific markets emerged to become eight of ten consumer markets that are most confident compared to South Korea, Japan, Indonesia and India, which were the least confident.
