Consumers in the world's fastest developing economies - including China - believe the global recession will be over within a year, according to a Nielson survey.
While the world remains in the grips of a global credit crunch, around one in three Chinese and Russians, 51 percent of Indians, and 45 percent of Vietnamese are expecting the global recession to end within the next 12 months, said a Nielsen Global Consumer Confidence survey. The survey polled 26,202 consumers in 52 countries during early October in the midst of the global financial crisis.
For global consumers, the last 12 months have been challenging and turbulent, but Chinese consumers' confidence has remained relatively stable since the second half of 2006 and even experienced a slight increase according to this round of the Nielsen survey.
Over half of Chinese consumers are optimistic about the state of their personal finances in the coming 12 months, it was noted.
"While other countries' consumers may be struggling to keep their heads above water, more than two thirds (72 percent) of Chinese consumers -living in one of the fastest growing economies in the world - are optimistic that their country is not currently in a recession, nearly twice that of the global average (37 percent)," said Chris Morley, Managing Director of the Nielsen Company (China).
Corporations and consumers in China remain confident that, despite what is happening in the rest of the world, their medium to long-term prospects remain bright, Morley added.
According to the survey, only 3 percent of Chinese consumers claim not to have any spare cash after paying for living essentials, compared to 6 percent in the Asia Pacific region experiencing the same, and the global average of 12 percent.
Chinese consumers, as well, still put a premium on savings, with 57 percent claiming to squirrel away money and 42 percent claiming to invest in stocks and mutual funds if they have the cash to spare.
When it comes to spending, Chinese consumers' willingness to make purchases over the next 12 months increased by 2 percent compared to a May 2008 survey.
The survey found that among potential purchases, spending on holiday travel is the first choice for Chinese consumers after essential living expenses have been covered. More than half of Chinese consumers (53 percent) choose to go on holiday excursions, which puts them above the global average of 34 percent.
"China is a huge outbound travel market with vast potential. During the economic slowdown, Chinese consumers will cut their travel budgets accordingly, but with the right market strategy and targeted travel package, Chinese consumers will seize their opportunity to see the world," said Morley. "And their willingness to spend on luxury goods when they travel overseas will also be an opportunity for global premium brands to consider in their target marketing."
While consumers outside China are ready to tighten their belts, China's consumers won't be holding back.
More than half of Chinese consumers (51 percent) additionally claim they will spend their spare cash on new clothes, the world's second most fashion-conscious behind Russia. Forty-one percent of Chinese consumers (ranked second globally) also desire to spend on out-of-home entertainment at a time when their global counterparts are cutting back on dining out and buying the latest technology.
"Though consumption will drop globally, China still offers huge market potential for those wanting to emerge unscathed from the global credit crunch, " explained Morley.
