4th Quarter, 2009

Global Consumer
Confidence, Concerns
and Spending
a global Nielsen
consumer report
January 2010
Consumer sentiment in Asia and Brazil point to
boost in global economic recovery according to
latest Nielsen Global Consumer Confidence Survey
• Confident Asians increase investments in stock market and funds; Spending on out-of-
home entertainment, holidays and new clothes also rebounding
• Indonesia, India and Brazil are most confident nations heading into 2010; South Korea
and Japan least confident
• Overall Global Consumer Confidence remains cautiously optimistic

An increase in consumer confidence in Asian markets, as well as
Brazil, continues to reflect signs that the economy is emerging
from a global recession and, in some markets, the recovery is
accelerating, according to the latest Nielsen Global Consumer
Confidence Index released today. Results of the Nielsen survey
showed that confidence gains in markets recovering fastest
from recession – including Hong Kong, China, Singapore, India
and Brazil – have fueled renewed willingness to spend by
many consumers as they head into 2010. More consumers are
increasing savings and stock market investments, as well as
spending more on “luxuries” such as entertainment, clothes,
and vacations. The Nielsen survey, which tracks consumer
confidence, major concerns and spending habits, was conducted
among more than 17,5001 Internet users in 29 markets between
December 4 -18, 2009.

Nielsen Global Consumer Confidence Index

4th Quarter, 2009 Changes Q4 09 vs. Q3 09
4 -4 3 1 -3 2 7 4 -2 4 2 -1 -11 5 1 -1 6 -1 2 2 1 5 3 1 -4 -4 -2

119
120 117

110
107
103 103
100 100 99 98
100 95 95
92
89
86 86 Global Average 87
84 83 82
79 79
80 77 77 76
74

67
64

% 60
48 47

40

20

0 ID IN BR AU PH CN HK SG NZ CA TH MY AE AR RU ZA PL MX US IT DE GB TW ES UA FR TR KO JP
4th Quarter 2009 Changes 4th Quarter 2009 vs. 3rd Quarter 2009

Base : All respondents n=500 1

For a full list of countries surveyed please see last page.

Copyright © 2009 The Nielsen Company. ii

 While eight of the top 10 most confident markets in the fourth
Consumer Confidence Index quarter of 2009 came from Asia Pacific, including emerging
Top 10 most confident countries 4th Quarter 2009 markets Indonesia (ranked 1st) and India (ranked 2nd),
consumers in two of Asia’s most developed markets, South
119
120 117
Korea and Japan, were the least confident. Brazil (ranked 3rd)
110
107
103 103 and Canada (ranked 10th) were the only countries outside
100 100 99
100
98
of Asia to make the top 10. Hong Kong recorded the highest
consumer confidence increase for the second consecutive
80 quarter in Q4 – up seven index points from 93 in Q3 2009 to
100 (on a scale of 0 to 200 Index points) in Q4. Confidence in
% 60
Hong Kong rose a total of 21 points since June 2009.
Globally, between June and December last year, the Nielsen
40 Global Consumer Confidence Index rose five points from 82 to 87.
“The Nielsen survey shows that in the past six months,
20
consumers have become more optimistic about their countries
emerging from recession with better job prospects and
0
ID IN BR AU PH CN HK SG NZ CA
personal finances. This is another sign that global recovery
is heading in the right direction,” said James Russo, Vice
Base : All respondents n=17574 President, Global Consumer Insights, The Nielsen Company.
“However, while purse strings may be loosening in some
markets, there is clearly a big difference in the pace of expected
recovery between the emerging and developed markets, and
consumers’ increased confidence is not yet translating into a
widespread readiness to start spending.”

iii Copyright © 2009 The Nielsen Company.

 Recession Perception
Do you think your country is in an economic
recession at the moment? Eighty-three percent of Chinese, 73 percent of Hong Kong
Regional Average consumers and 60 percent of Singaporeans surveyed said they
Yes No
came out of recession in Q4 2009 – in sharp contrast to more
100
12
than 90 percent of consumers in Mexico, the U.S., UK, Ukraine,
17 20 Spain and Turkey, who felt their economies were still deep in
80 40 36 recession in the last quarter of the year.
55
Although Spain has one of the highest percentages of
60 consumers who still believe they are in a deep recession,
Spanish consumers are hopeful of recovery by the end of the
%
88
83
year – 28 percent think they will be out of recession by this
40
80 time next year, along with 23 percent of the UK’s consumers.
64
60 Europe recorded the steadiest growth rates towards recovery
20
45
– no major European market recorded a consumer confidence
decline in Q4. The percentage of Germans who said they’re
in recession dropped from 85 percent in June to 71 percent
0
NA EU MEAP LA AP Global in December, and one in four consumers expects to be out of
Average recession by the end of 2010. “Slow but steady is Europe’s
Base : All respondents n=14481 mantra towards recovery in 2010,” said Russo.
In December 2009, the U.S. topped global rankings as the
country most concerned about the economy – 47 percent
Major concerns: The economy of U.S. consumers cited the economy as their first or second
Top 10 concern. Consumers in Canada are becoming more optimistic
about emerging from recession. While 70 percent of Canadians
50
Biggest concern Second biggest concern
believed their country was still in recession in Q4, this was
down from 85 percent in June.
40 “It’s going to take a lot for the U.S. consumer to come fully off
19 the sideline as skepticism remains high regarding a recovery,”
17 17 18 said Russo. “With a weak, but improving labor market, record
18
30 18
19 foreclosures, and tight credit, the consumer has a lot to work
17 13
% 17 through before a sustained recovery is seen.”
20 In Taiwan, which followed Hong Kong with the second biggest
28
confidence gain of six index points (from 71 to 77 points),
26
25 24
21 20
the stock market and property market show positive signs
10 19 20
18 17 of rebounding. Most of the optimism is driven by expected
wage increases in 2010, which will in turn drive domestic
0 consumption. “In Q4, Taiwanese consumers finally felt that
US TW HK UA TH ID JP ES SG CN
they are coming out of recession. Salary levels have been
stagnant for the past few years so news of wage increases led
Base : All respondents n=14481 by the electronics and financial sectors is generating newfound
optimism for the Taiwanese,” said Russo.

Copyright © 2009 The Nielsen Company. iv

This is in sharp contrast to the United Arab Emirates which
posted the biggest fall in consumer confidence (from 102 Perceptions of State of Personal Finances over the
points in Q3 to 92 in Q4) – a result of the Dubai financial NEXT 12 Months
meltdown last year. “The Dubai economy and its consumers
have been riding a volatile roller coaster ride in the past Top 5
18 months,” said Russo. “Despite the 10 index point fall in 100
Excellent Good
Q4 2009, however, consumers remain optimistic that the
80
downturn will be over by the end of 2010.”
Consumers in Japan and Korea also became more pessimistic 70

about their economies in Q4. More consumers in Japan 60

believed they were in recession in Q4 than in Q3 (88 percent
53
in Q4 compared to 80 percent in Q3) as the Japanese economy % 50
grew at a slower rate than expected and consumers remain
concerned about rising unemployment rates and deflation. 40 66 66 60

Among South Koreans, 86 percent said their country was in 30 56

recession in Q4 compared to 82 percent in Q3, and 47 percent

of Koreans do not expect to be out of recession within a year 20

compared to 41 percent in Q3. 27

10
12
“While Asian economies continued to pull the rest of the 10 10
6
world out of recession, confidence in two of the world’s largest 0
ID IN BR PH AU
markets reversed slightly in Q4, and Japanese and South
Base : All respondents n=17574
Korean consumers have extended their expectations of full
economic recovery beyond 2010,” said Russo.

Perceptions of State of Personal Finances over the

Global Consumers More Optimistic About Personal
NEXT 12 Months
Finances
Top 5
Nearly one in two (48 percent) of all global consumers 100 Not so good Bad

surveyed said their personal financial outlook for 2010 will be

excellent or good compared to 43 percent last June. Indonesians
are the most optimistic consumers about their personal finances 80
with 27 percent describing their 2010 financial outlook as 42
excellent. India and Brazil follow with 12 percent and 10 percent 32
respectively saying their financial outlook is excellent. 60 14 12

Asia is also leading the way in increased discretionary spending. %

15
Chinese consumers topped global rankings (in discretionary
spending) for investing in stocks and mutual funds (57 percent) 40

and new technology products (44 percent), and are ranked second 52
globally for spending on new clothes (53 percent) and holidays 48 50 51
43
(50 percent). Hong Kong consumers are also opening their wallets 20
more and continuing to spend on out-of-home entertainment,
new clothes, new technology and holidays. Between June and
December last year, Hong Kong consumers increased their 0
spending on out-of-home entertainment and new clothes by 12 JP KO FR TW TR
percent, and are also increasing their savings and investments in Base : All respondents n=17574
the stock market as they pull out of recession.

v Copyright © 2009 The Nielsen Company.

 How to utilise spare cash after covering essential How to utilise spare cash after covering essential
living expenses living expenses
Top 10 Putting into savings Top 10 Spend on holidays/vacations
100
100

80 80
71
68
66 65 65 64 63 63
59 59
60 60
52
50
% % 47
43 42
40 39 39
40 37 36
40

20 20

0
0 SG CN TH MY HK RU ID BR AR IT
HK PH SG ID IN TW CN MY JP TH

Base : All respondents n=14481 Base : All respondents n=14481

Chinese consumers and Singaporeans are most likely to spend
on holidays in the first half of 2010. “Spending on holidays and
vacations in Hong Kong and Singapore rose almost 10 percent
between June and December last year,” said Russo. “Asian
consumers cut their travel and holiday budget quite drastically
during the downturn, so this year they’re planning on taking that
delayed, well-earned vacation.”
However, in India, where food accounts for 58 percent of
household expenditure compared with only 10-15 percent in the
wealthiest Western countries, rising food prices are becoming a
major concern and affecting Indian consumers’ spending power.
“Although the Indian economy is expected to grow in 2010, India
has experienced a bad monsoon season resulting in increased
food prices and higher grocery bills for consumers. This has had an
immediate impact on consumer confidence and the availability of
discretionary income,” said Russo.
In Latin America, while Mexico’s consumers still believe they
are in a recession, they are cautiously beginning to loosen their
purse strings as Mexico saw a consumer confidence increase of six
points in the fourth quarter of 2009. Brazil also quickly bounced
back from recession making Brazilian consumers among the most
likely to go on a spending spree in 2010.
Canadians are also becoming more optimistic about their personal
finances with 39 percent saying now is a good time to spend.
Other countries most willing to spend in 2010 include Australia
and Indonesia – economies that have bounced back from the
global recession fastest.

Copyright © 2009 The Nielsen Company. vi

Job Prospects Looking Up
Perceptions of Local Job Prospects over the next 12
In December 2009, 37 percent of global consumers described months
job prospects for 2010 as excellent or good compared with 30
percent in June 2009.
Top 10 Optimistic
100
The economy and job security remain top global concerns, Excellent Good

however the concern for job security continued to decline in

Q4 2009. In June 2009, one in four (20 percent) of consumers 80
cited job security as a main life concern but this decreased to
13 percent in the last month of 2009.
60
Seven out of the top 10 most optimistic markets about job
prospects in 2010 come from Asia, spearheaded by India where %
66
83 percent of consumers said job prospects will be excellent or 40 57
good, followed by 70 percent of Indonesians. 59 57
59 55
55 47 49 46
Spain, which currently has the highest unemployment rate in 20
Europe at 19 percent topped global rankings for most con-
cerned about job security. 17
13
8
7 5 1 8 4 5
3
0
IN ID BR AU SG CA HK CN MY PH

Base: all respondents 30, 624

Major Concerns over the next 6 months Keep Moving Forward

“A year ago the world was in free-fall and
The economy 18 14
Job security 13 10
consumer confidence hit an all-time low
Work/life balance 11 9 in Nielsen’s global index. As govern-
Health 9 11 ments acted quickly to bail out banks
Increasing utility bills
(electricity, gas, heating, etc)
7 8
and install massive stimulus programs,
Debt 7 6
Childrens' education and/or welfare 6 6
we started to see the first green shoots
Increasing food prices 5 8 of recovery at the end of Q1 2009, driven
Parents' welfare and happiness 3 6 % primarily by the emerging markets, said
Global warming 3 3
Russo. “Global consumers crossed an
Crime 3 3
Political stability 3 3 Biggest concern
important psychological milestone in Q3
Increasing fuel prices 2 4
Second biggest concern
2009 and began to believe the worst was
Terrorism 2 2
over. While global consumers are
War 1 2
Immigration 1 1
beginning 2010 feeling even more certain
Lack of understanding of other cultures 1 1 that the worst is over, their next burning
Tolerance towards different religions question is ‘when are things really going
Tolerance towards other countries’ values
to get better?’. Until consumers have
Other concern 3 2
No concerns 2 1
stronger reassurances that recovery is
going to accelerate, they are going to err
Base : All respondents n=4504 on the side of caution.”

vii Copyright © 2009 The Nielsen Company.

Participating Countries and their Abbreviations Region Abbreviations
AE United Arab Emirates JP Japan AP Asia Pacific
AR Argentina KO South Korea LA Latin America
AU Australia MY Malaysia MEAP Middle East, Africa, Pakistan
BR Brazil NZ New Zealand NA North America
CA Canada PH Philippines EU Europe
CN China PL Poland
DE Germany RU Russia
ES Spain SG Singapore
FR France TH Thailand
GB United Kingdom TR Turkey
HK Hong Kong TW Taiwan
ID Indonesia UA Ukraine
IN India US United States
IT Italy ZA South Africa

About the Nielsen Global About The Nielsen Company

Consumer Confidence Survey
The Nielsen Global Consumer
Confidence Survey was conducted
between December 4 -18, 2009 and
polled over 17,500 consumers in Asia
Pacific, Europe, Latin America, the Middle
East and North America about their
confidence levels and economic outlook.
The Nielsen Consumer Confidence
Index is developed based on consumers’
confidence in the job market, status of
their personal finances and readiness to
spend. The sample has quotas based on
age and sex for each country based on
their Internet users, and is weighted to
be representative of Internet consumers
and has a maximum margin of error of
±0.6%.
The Nielsen Company is a global
information and media company with
leading market positions in marketing
and consumer information, television
and other media measurement, online
intelligence, mobile measurement,
trade shows and business publications.
The privately held company is active
in approximately 100 countries, with
headquarters in New York, USA.
For more information, please visit
www.nielsen.com

For more information visit www.nielsen.com

Copyright © 2009 The Nielsen Company. viii