01 March 2021 18:22

MediAvataar's News Desk

MediAvataar's News Desk

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Wednesday, 04 November 2015 00:00

Global consumer confidence increases in Q3

Global consumer confidence increased three index points in the third quarter to 99, the highest level since 2006. Optimistic sentiment for job prospects, personal finances and spending intentions increased in nearly half (48%) of all measured markets, but uneven growth continues around the world as confidence stabilizes or grows in many advanced economies and declines in many emerging markets.

Regionally, confidence increased significantly in North America (U.S. and Canada) with a 16-point index surge, reaching a score of 117—the region’s highest level in Nielsen’s 10-year consumer confidence history. Confidence in Europe continued on an upward trajectory for the third consecutive quarter, as 21 of 32 countries posted index increases, resulting in a regional score of 81—the highest level since 2008. Conversely, confidence in the Asia-Pacific region declined one index point to 106, and fell two points in Latin America (81), the lowest score on record for the region. Consumer confidence held steady in the Middle East/Africa region1 with a score of 94.

Among the world’s largest economies, confidence increased 18 points in the U.S. (119)—the highest score for the country in Nielsen’s 10-year consumer confidence history. Confidence also increased four points in the U.K. (103) and three points in Germany (100) from the second quarter. Conversely, confidence declined one point in China (106) and three points in Japan (80).

CONFIDENCE INCREASED IN 27 OF 60 GLOBAL MARKETS

In the latest online survey, conducted May 11-29, 2015, consumer confidence increased in 27 of 60 markets measured by Nielsen (45%). India’s score of 131 was the highest level among 60 markets, followed by the Philippines (122), Indonesia (120) and Denmark (112). The Philippines showed the biggest quarterly improvement, as confidence there rose seven points, and Greece showed the biggest quarterly decline of 12 points from the first quarter. South Korea reported the lowest score of 45.

• Clothes, Sweets & Dry Fruits, Chocolates, Footwear and Mobiles are the Top Five Planned Purchases Items this Diwali

• Flipkart, Amazon and SnapDeal stands out as preferred online shopping market place

• Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Toyota, Hyundai are most preferred 4 wheelers

More than third (77%) Indians have withheld purchase decision till Diwali / Festival Season in anticipation of heavy discounts, according to the Festival Shopping Trends survey conducted by global research firm Ipsos.

“This festive season bargain-hunting may become the preferred choice for majority of Indians with the current increase in prices of vegetables and staples impacting the festival shopping budget. Higher discounts will help people save money and is an added incentive for spending on long desired items,” said Biswarup Banerjee, Head of Marketing Communication, Ipsos India.

Majority (56%) of people in India plan to shop this Diwali and remaining 44% said they won’t go shopping this Diwali.

The top 10 planned purchases items are Clothes (68%), Sweets & Dry Fruits (35%), Chocolates (24%), Footwear (24%), Mobiles (20%), Watch (17%), Bags, Belts & Wallet (14%), Perfumes/ Deodorants (12%), Sunglasses (10%) and Jewelry / Gold (8%).

Rs. 7232 is the estimated average planned shopping budget this Diwali according to the Ipsos survey. However, a large majority (70%) said that there planned shopping expenditure during this Diwali is less than Rs. 5000.

Just 6 percent Indian citizen said that their shopping budget during this Diwali is between Rs. 20,000 to Rs. 50,000. In this group, rich and higher middle class income families were significantly higher than middle and lower middle income families. Only 1 percent of rich Indians claimed that their planned expenditure during this Diwali is between Rs. 50,000 to Rs. 100,000.

Eight in Ten (81%) people plan to shop at a Retail Store in their city, and remaining 19 percent plan to shop through online marketplace.

Flipkart (70%) has emerged as the preferred online shopping destination of those people who plan to shop online, followed by Amazon (47%), SnapDeal (36%), Home Shop 18 (11%), Jabong (9%), eBay (7%), Myntra (6%), Shopclues (4%) and Naaptol (4%).

Shubhranshu Das, Executive Director – Ipsos Marketing, India said, “with 19% intending to make their purchases online, retail platforms such as Flipkart, Amazon and SnapDeal stand out as their preferred brands. The growth in online shopping is likely to continue and the focus on mobile shopping apps, an increase in mobile advertising, geo triggering options and special promotions will possibly add further impetus.”

Out of the people who said they will purchase from brick & motor retail stores, one in two (55%) people still prefer to shop from Local Retail Stores. BigBazaar (41%) stands out as a preferred destination for festival shopping in comparison to other organized retail chains.

Shoppers Stop (9%), Reliance Trends (8%), Life Style (6%), Pantaloons (6%), D Mart (6%), Croma (4%), and Star Bazaar (3%) are the other preferred big players in organized retail business.

“There is a dominating perception among consumer that purchase from local outlets can deliver better discounts through bargaining. This is likely to remain consistent as far as festival shopping is concerned,” added Shubhranshu.

Only 12 percent people intend to buy a vehicle, out of which one in ten (10%) plan to buy 2 wheelers and 2 percent plan to buy cars.

Out of the people who said they intend to purchase 2 wheelers, a whopping 51 percent plan to buy Honda 2 wheelers, followed by Bajaj (11%), Hero MotoCorp Ltd (9%), Yamaha (8%), TVS (6%), Suzuki (6%), Royal Enfield (4%) and Mahindra (3%).

Maruti Suzuki (36%) is the leading choice of people who plan to buy 4 wheelers, followed by Tata Motors (18%), Mahindra & Mahindra (14%), Toyota (14%), Hyundai (9%), Audi (5%), and Volkswagen (5%).

Ipsos Festival Shopping Trends survey was conducted through Ipsos Omnibus service (IpsosBus) in October among 1035 men and women in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad and Lucknow.

Many elite buyers are drawn to products commonly associated with the hoi polloi.

A famous paper on culture and status argues that people with high social or economic status have broader cultural tastes than those with low status (See DiMaggio 1987). In other words, the respected and rich do not actually hide in the opera house and modern art gallery; they also listen to popular music and look at art that the rest of society finds understandable. The cultural lines are actually drawn in the opposite direction: it is the poor who stay away from many forms of culture, staying instead with a limited range of mass offerings.

But what if we look outside the cultural sphere? Surely we would be right to assume that elites deliberately set themselves apart when it comes to the most status-indicative commodities, such as cars? Not so fast! Suppose we define a luxury vehicle as one that costs US$50,000 in the USA and is mainly intended for moving people around (so we exclude commercial vehicles). What is the best-selling luxury vehicle in the United States? According to a report in The Wall Street Journal, the Ford F150 pickup truck. To be specific, the F150 comes in a wide range of prices, but is projected to sell about 190,000 vehicles in the luxury range this year. That’s more than twice the Mercedes-Benz E-Class, which is projected to sell 67,000. And by the way, the E-Class holds third place in the ranking, behind the Ram pickup which will sell about 76,000.

Trucks sell better than cars even in the luxury range. In fact, they sell much better than sports utility vehicles, which you might have thought of as the elite version of large luxury vehicles. Seventh through ninth place in the ranking are SUVs, behind yet more trucks and the BMW 5 series. So what is going on? Many wealthy individuals are not escaping into vehicles that no poor people can afford; they are driving upgraded versions of the same vehicles. And in fact, these vehicles are actually passenger versions of trucks that one can see gardeners and construction workers drive for commercial use.

This will be interesting to some readers simply because it is unexpected. It should be even more interesting because it is not well-known even in the auto industry, where much strategic and marketing effort goes into trying to win the U.S. market back from the foreign brands. But U.S. brands, and Ford especially, are already dominating the luxury vehicle segment. They just don’t know it because the winning vehicle is classified as a truck, not a car, and because elite buyers are classified as narrow in their taste rather than broad. The first classification is a misreading of the market. The second completely contradicts how status and tastes are linked in reality.

 

Written by Henrich Greve, INSEAD Professor of Entrepreneurship

Source INSEAD

Although some may perceive B2B brands as lacking the appeal of consumer goods brands, it’s interesting to consider how some have managed to infiltrate the consumer psyche.

Intel is a stand-out example of a brand that is primarily sold to other companies. But, with a catchy mnemonic and a distinctive identity, how many of us could say that we’re not aware of it?

To a lesser extent, Brembo brakes is another example of a successful B2B ingredient brand. Most consumers are not overly concerned with the type of brake system installed in their car. As long as the brakes work, the average Toyota, Chevrolet, or Renault driver is not too fussed. But, what about the owner of a Ferrari or Porche? One only has to look at the Brembo branding boldly printed on a red brake caliper to know that when you own a car capable of reaching 0-100 kmh in less than four seconds, stopping the car in an even shorter period of time is high on the priority list.

The last ten or so years have been particularly interesting for B2B brands within the aviation sector. While consumers can’t afford to buy a plane from Airbus or Boeing, that doesn’t mean it’s not on their minds when considering which airline to fly. Japan’s ANA (All Nipon Airlines) made a big deal of being one of the first airlines to fly so many Boeing Dreamliners­, also known as the 787. Likewise, Singapore Airlines bought heavily into the Superjumbo (Airbus A380) when it started flying in 2005. It is not uncommon for passengers to choose a particular route or time based on the type of aircraft that their preferred airline is deploying.

Ingredient branding is not just for cleaning supplies and foodstuffs. By creating a bond with consumers, B2B brands can sell themselves as creating a pull strategy for the corporations who purchase their goods and services. The agile brand doesn’t just make its clients happy; it makes its clients’ clients happy.

 

Written by Nick Foley at Landor

Everyone knows that mobile is the next frontier, but many brands are struggling to find the best way to engage their mobile consumers. With this in mind a new study from Millward Brown Digital in the U.S. provides useful information on how people use the browser and apps on their mobile phones.

The study titled The New Mobile Mantra combines two sources of information in order to understand the differing use of browser and apps. The first uses behavioral data from U.S. mobile consumers who have opted in to Millward Brown Digital’s proprietary Compete mobile clickstream panel; which tracks every app and site our panelists visit. The second source is a survey of 2,011 respondents over the age of 18 in the U.S. who own a smartphone. Combined, the two sources offer a unique view of smartphone behavior and the reasons behind that behavior.

The research finds that overall usage of the browser or an app is very similar:  59 percent of total unique visitors to the top 30 mobile brands visited via browser, versus 60 percent in app. However, once we drill down into usage related to specific categories, distinct patterns emerge. When it comes to infrequent contact or purchase categories like cars, hotels and consumer electronics, people tend to use their browser most, but if it is a frequently used service then apps are used more.

I only have to look at my own phone to see that the results make sense. Apart from entertainment and information apps, the most frequently used apps on my phone are for airlines. However, my phone also demonstrates that there are no hard and fast rules when it comes to browser versus app use. I do have one hotel app, even though, like the majority of our respondents, I typically use the browser to access hotel sites. Hilton’s app allows me to check in and choose a room ahead of time, and I use the Hilton at Logan airport a lot.

Apps that fail to offer any real utility or fail to deliver a good user experience are at risk of deletion. Most people only use between four and six apps a day, and phone memory and power are precious resources. I use Avis rental cars quite a lot, but deleted the Avis app because it kept getting stuck in a loop whenever I tried to rent a car from a specific location – “I know it is only open certain hours but I want to rent a car anyway!”

There is a lot more useful information in the Millward Brown Digital report, but my overall takeaway is that brands must understand exactly what information consumers are likely to need and when if they are to create a positive experience for their users. Potential users are likely to first find the brand through the browser. Returning users or customers may use an app, but only if it justifies the real estate on the person’s phone. Just replicating what is on the brand’s website is not likely to do that.

 

Authored by Nigel Hollis,Executive Vice President and Chief Global Analyst at Millward Brown.

Powered By MAXIMESS

We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…