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CCI gain not showing up at local cash registers
Bangkok Post – 19 November 2008
POST REPORTERS
Thai consumers' confidence has improved slightly from the first six months of this year but not enough to lift shopping sentiment, according to a twice-yearly global research by The Nielsen Company.
The local consumer confidence index (CCI) as tallied by Nielsen has increased from 87 to 89.
However, Nielsen's global confidence index has hit an all-time low of 84, down from the peak of 99 in 2006. The sentiment of American consumers living at the centre of the financial meltdown hit a new low of 82, down from 100 during the same period last year.
Consumers in the fast-growing BRIC - Brazil, Russia, India and China - economies were still optimistic as products and services spending continued to post double digit-growth.
The company's online study polled more than 26,000 consumers in 52 markets from Sept 22 to Oct 6.
Five hundred Thais were asked about their confidence levels and economic outlook.
The survey found 72% of Thai people were sceptical about local job prospects and 68% considered it a "not so good/bad time" to buy things they want over the next 12 months.
More than a half of the respondents plan to save cash after covering basic living expenses. Fifty one percent want to save cash for vacations and 36% for retirement fund.
"On a positive note, more than half of Thais remain quite optimistic about the sate of their personal finance in the next 12 months. Only 5% of them said they had no spare cash," said Chantira Luesakul, managing director of The Nielsen Company (Thailand).
Ms Chantira said that due to economic uncertainty, people prefer staying at home. The stay-in trend provides new marketing opportunities for innovative at-home entertainment and options as well as at home food and beverage products, along with premium and prepared food ranges specifically aimed at home entertaining.
"During economic slowdowns, it's important to remember that there are gaps and opportunities for savvy marketers," she said.
She suggested that companies continue to invest in their brands and products and stay constantly engaged with their target markets.
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