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Young People’s Consumer Confidence -
   Developed and Growth markets
            October 2012
Summary
•   Overall young consumers in growth markets are at least twice as confident, compared to
    those in developed markets. Confidence is being driven in growth markets by a very
    positive outlook for the economy and future job prospects.
•   Young consumers in growth markets haven’t been jaded by a hard hitting recession that
    those in developed markets have, and there is a serious risk of young people in developing
    nations becoming the ‘lost generation’.
•   Growth markets optimisms towards their economy, transfers into views on buying large
    purchases and provides a fantastic opportunity for UK and US companies looking to export
    into these markets.
•   However when exporting to growth markets, companies must understand the different
    business practices, regulations, infrastructure, cultural differences and population makeup -
    in Nigeria 60% of the population is under 25, which impacts product demand.
•   What is clear, is that the mobile device is very important in the lives of young consumers all
    over the world, which will be reflected in not only how we research these consumers, but
    also how marketers communicate and transact with them.
    Contact us at info@ondeviceresearch.com to add in your own survey questions
Young Consumer Confidence Index (YPCC)

By collecting data from key markets we help businesses understand what young
people think about their current and future economic prospects.

By using a select group of growth and developed markets, it allows for a
comparison of youth confidence in different economies. It also gives
businesses looking to develop in growth markets, a good indication of the
current and future health of the economy.

The YPPC will be repeated regularly so trends can be tracked over time.
Sign up to our newsletter on our website to receive future updates.
Methodology
            • 5,600 mobile users completed a survey
              via the mobile internet
            • Study covers China, India, Nigeria, Brazil
              and the UK and US
            • Not nationally representative, but
              representative of young consumers 18-34
            • Age, gender and regional quotas




The discrepancy between mobile and desktop internet penetration means
           mobile is the only way to research a growth market
Index Questions

The index score is calculated using the mean results of six key questions,
asking consumers:

1. How do you expect your employment situation/prospects to change
   over the next 12 months?
2. How do you expect the general economic situation in this country to
   change over the next 12 months?
3. How are you feeling about your current employment
   situation/prospects?
4. In view of the economy, is now the right time to buy big purchases?
5. How are you feeling about your current personal/household
   financial situation?
6. Overall how are you feeling about the economy?
Index

•   Overview
•   Developed vs Growth Markets comparison
•   Highlight on US vs China
•   Demographics
•   Importance of mobile
Developed vs Growth Markets
Overall young consumers in growth markets are at least twice as
confident, compared to those in developed markets. Young Chinese
consumers have the overall highest confidence level
                                                YPCC Index

           45
                      39                38       37
           40
           35                                                32
           30
           25
   Index




           20                                                        16
           15
                                                                          10
           10
            5
            0
                    China              Brazil   Nigeria      India   US   UK

Source: On Device Research YCCI
Brazil, China, India, Nigeria, US,UK
n = 5600
August 2012
A reason for China’s youth confidence? They’re experiencing stable
 GDP growth, compared to the UK and US where growth is minimal

                                    GDP growth (annual %)
   14
                                 2007      2008   2009      2010        2011

    9



    4



   -1        China       India          Nigeria   Brazil           US          UK


   -6


Source: The World Bank
Increased GDP also contributes to wealth and a mass of humanity
the size of the population of Europe, will be stepping up to the
middle classes in China in just two decades




                                          74%
                    12%               China’s middle class
               China’s middle class
                        2012                 2030


Source: Hargreaves Lansdown
So what’s driving this confidence?
Young people in the UK and US are fairly positive about their
current financial situation, but they are not so positive when it
comes to their current employment prospects

                       Brazil           Nigeria   UK        India        China        US


  How are you feeling about your
   current personal/household
       financial situation?



  How are you feeling about your
      current employment
      situation/prospects?


                                              0        20           40           60
Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
In July 2012, 1.02 million young people in the UK aged 16-24 were
unemployed, +37,000 on the same quarter in 2011. There is a
danger that the UK’s youth will become a ‘lost generation’




Source: UK Government Statistics
July 2012
Britons are 15x less confident than growth markets (4 vs. 57) about how
the general economic situation will change in their own country in next
year, and 3x less confident about their future employment prospects

                            UK          US   India        China        Nigeria        Brazil



How do you expect the general economic
 situation in this country to change over
           the next 12 months?



     How do you expect your employment
    situation/prospects to change over the
               next 12 months?


                                                0    10    20     30   40   50   60    70      80
Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
Young people in Brazil are very optimistic about their future – in
fact they’re 6x more confident about their future than young
people in the UK and US
                                  Why?
                       Two potential reasons




     These events are going to have a major long term impact on improved
      infrastructure, tourism, creating jobs and bringing business to Brazil
Differences in confidence is reflected in purchasing intent - growth markets
index 32 points higher vs UK in believing now is the right time to make big
purchases, a positive for companies looking to move into these markets.


                             UK          US         Nigeria       Brazil        China        India



       Overall how are you feeling about the
                    economy?



      In view of the general economic
 situation, is now the right time for people
 to buy big purchases e.g electrical goods?


                                         -10   -5      0      5    10      15   20      25   30      35
 Source: On Device Research YCCI
 Brazil, China, India, Nigeria, US, UK
 n = 5600
 August 2012
Summary of the major driver of confidence


    39                   38             37        32           16            10




            Optimism for the future both for the       Most confident about their current
                economy and job prospects                     financial situation

               Propensity to purchase big items

         In comparison these are areas developed
             nations are least confident about

Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
US vs China
Young Chinese consumers are 2.5x more confident than young
American consumers

                                        YPCC Index




                    39                               16
Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
The Chinese are over five times more confident than young Americans
about the future economic situation of their country, and three times
more confident about their employment prospects


                                                China         US

            70
            60
            50
            40
            30
            20
            10
              0
                      Employment situation to change in   Economic situation to change in next
                                next year                                 year

Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
The difference in economic confidence between young American
consumers and China is reflected in purchase intent - China index 24 points
higher than US in believing now is the time to be making big purchases


                                                China     US
        30
        25
        20
        15
        10
          5
          0
                        Feeling about the economy       Right time to buy big purchases
         -5

Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
Differences in gender and age
Generally young females tend to have a lower level of overall
confidence

                                              Male     Female

45
40
35
30
25
20
15
10
 5
 0
            Nigeria               Brazil   China     India      US   UK

Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
Apart from in Brazil and India the over 25s tend to have a lower
level of overall confidence

                                             Under 25      Over 25

 45
 40
 35
 30
 25
 20
 15
 10
   5
   0
              China              Nigeria   Brazil       India        US   UK
Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
Importance of mobile
One similarity between all markets however is the importance of
their mobile, and this device is certain to have a big impact on
young consumers lives across the developing and developed nations

                      Mobile phone is very important/important to them




     96%                  92%           89%   80%          80%           73%



Source: On Device Research YCCI
Brazil, China, India, Nigeria, US, UK
n = 5600
August 2012
Summary
•   Overall young consumers in growth markets are at least twice as confident, compared to
    those in developed markets. Confidence is being driven in growth markets by a very
    positive outlook for the economy and future job prospects.
•   Young consumers in growth markets haven’t been jaded by a hard hitting recession that
    those in developed markets have, and there is a serious risk of young people in developing
    nations becoming the ‘lost generation’.
•   Growth markets optimisms towards their economy, transfers into views on buying large
    purchases and provides a fantastic opportunity for UK and US companies looking to export
    into these markets.
•   However when exporting to growth markets, companies must understand the different
    business practices, regulations, infrastructure, cultural differences and population makeup -
    in Nigeria 60% of the population is under 25, which impacts product demand.
•   What is clear, is that the mobile device is very important in the lives of young consumers all
    over the world, which will be reflected in not only how we research these consumers, but
    also how marketers communicate and transact with them.
    Contact us at info@ondeviceresearch.com to add in your own survey questions
Sarah Quinn
sarah@ondeviceresearch.com
+44 (0)207 278 6627
www.ondeviceresearch.com

    @ondevice
    Follow us on Slideshare
Sign up to our newsletter to receive the next wave of YPCC data & analysis
On Device Research Services
On Device Omnibus
•   Contact hard to reach people in emerging markets quickly and cost effectively
•   Survey up to 1,000 respondents per month in Brazil, India, China and Nigeria, UK and US
•   Robust, sample of 16-34 year old consumers
•   Online interface for data analysis

                         1-3 Countries                       4-6 Countries
                  Per Complete   Total Cost for              Per Complete    Total Cost for 5
                                                  Discount
                       (£)         1 Country                      (£)           Countries

1-2 Questions        £0.50          £500           20%         £0.40            £2000

3-5 Questions        £1.00          £1000          20%         £0.80            £4000

6-10 Questions       £1.50          £1500          20%         £1.20            £6000

10-15 Questions      £2.00          £2000          20%         £1.60            £8000
On Device Research
On Device Research
                       uses the mobile
                  Internet to gain access
                   to consumer opinions
                    at any time, place or
                           country


So far we’ve surveyed over 1.4 million consumers across 53 countries
We make mobile research work…
Some of our clients

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Young People's Consumer Confidence Index - Developed and Growth Markets

  • 1. Young People’s Consumer Confidence - Developed and Growth markets October 2012
  • 2. Summary • Overall young consumers in growth markets are at least twice as confident, compared to those in developed markets. Confidence is being driven in growth markets by a very positive outlook for the economy and future job prospects. • Young consumers in growth markets haven’t been jaded by a hard hitting recession that those in developed markets have, and there is a serious risk of young people in developing nations becoming the ‘lost generation’. • Growth markets optimisms towards their economy, transfers into views on buying large purchases and provides a fantastic opportunity for UK and US companies looking to export into these markets. • However when exporting to growth markets, companies must understand the different business practices, regulations, infrastructure, cultural differences and population makeup - in Nigeria 60% of the population is under 25, which impacts product demand. • What is clear, is that the mobile device is very important in the lives of young consumers all over the world, which will be reflected in not only how we research these consumers, but also how marketers communicate and transact with them. Contact us at info@ondeviceresearch.com to add in your own survey questions
  • 3. Young Consumer Confidence Index (YPCC) By collecting data from key markets we help businesses understand what young people think about their current and future economic prospects. By using a select group of growth and developed markets, it allows for a comparison of youth confidence in different economies. It also gives businesses looking to develop in growth markets, a good indication of the current and future health of the economy. The YPPC will be repeated regularly so trends can be tracked over time. Sign up to our newsletter on our website to receive future updates.
  • 4. Methodology • 5,600 mobile users completed a survey via the mobile internet • Study covers China, India, Nigeria, Brazil and the UK and US • Not nationally representative, but representative of young consumers 18-34 • Age, gender and regional quotas The discrepancy between mobile and desktop internet penetration means mobile is the only way to research a growth market
  • 5. Index Questions The index score is calculated using the mean results of six key questions, asking consumers: 1. How do you expect your employment situation/prospects to change over the next 12 months? 2. How do you expect the general economic situation in this country to change over the next 12 months? 3. How are you feeling about your current employment situation/prospects? 4. In view of the economy, is now the right time to buy big purchases? 5. How are you feeling about your current personal/household financial situation? 6. Overall how are you feeling about the economy?
  • 6. Index • Overview • Developed vs Growth Markets comparison • Highlight on US vs China • Demographics • Importance of mobile
  • 8. Overall young consumers in growth markets are at least twice as confident, compared to those in developed markets. Young Chinese consumers have the overall highest confidence level YPCC Index 45 39 38 37 40 35 32 30 25 Index 20 16 15 10 10 5 0 China Brazil Nigeria India US UK Source: On Device Research YCCI Brazil, China, India, Nigeria, US,UK n = 5600 August 2012
  • 9. A reason for China’s youth confidence? They’re experiencing stable GDP growth, compared to the UK and US where growth is minimal GDP growth (annual %) 14 2007 2008 2009 2010 2011 9 4 -1 China India Nigeria Brazil US UK -6 Source: The World Bank
  • 10. Increased GDP also contributes to wealth and a mass of humanity the size of the population of Europe, will be stepping up to the middle classes in China in just two decades 74% 12% China’s middle class China’s middle class 2012 2030 Source: Hargreaves Lansdown
  • 11. So what’s driving this confidence?
  • 12. Young people in the UK and US are fairly positive about their current financial situation, but they are not so positive when it comes to their current employment prospects Brazil Nigeria UK India China US How are you feeling about your current personal/household financial situation? How are you feeling about your current employment situation/prospects? 0 20 40 60 Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 13. In July 2012, 1.02 million young people in the UK aged 16-24 were unemployed, +37,000 on the same quarter in 2011. There is a danger that the UK’s youth will become a ‘lost generation’ Source: UK Government Statistics July 2012
  • 14. Britons are 15x less confident than growth markets (4 vs. 57) about how the general economic situation will change in their own country in next year, and 3x less confident about their future employment prospects UK US India China Nigeria Brazil How do you expect the general economic situation in this country to change over the next 12 months? How do you expect your employment situation/prospects to change over the next 12 months? 0 10 20 30 40 50 60 70 80 Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 15. Young people in Brazil are very optimistic about their future – in fact they’re 6x more confident about their future than young people in the UK and US Why? Two potential reasons These events are going to have a major long term impact on improved infrastructure, tourism, creating jobs and bringing business to Brazil
  • 16. Differences in confidence is reflected in purchasing intent - growth markets index 32 points higher vs UK in believing now is the right time to make big purchases, a positive for companies looking to move into these markets. UK US Nigeria Brazil China India Overall how are you feeling about the economy? In view of the general economic situation, is now the right time for people to buy big purchases e.g electrical goods? -10 -5 0 5 10 15 20 25 30 35 Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 17. Summary of the major driver of confidence 39 38 37 32 16 10 Optimism for the future both for the Most confident about their current economy and job prospects financial situation Propensity to purchase big items In comparison these are areas developed nations are least confident about Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 19. Young Chinese consumers are 2.5x more confident than young American consumers YPCC Index 39 16 Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 20. The Chinese are over five times more confident than young Americans about the future economic situation of their country, and three times more confident about their employment prospects China US 70 60 50 40 30 20 10 0 Employment situation to change in Economic situation to change in next next year year Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 21. The difference in economic confidence between young American consumers and China is reflected in purchase intent - China index 24 points higher than US in believing now is the time to be making big purchases China US 30 25 20 15 10 5 0 Feeling about the economy Right time to buy big purchases -5 Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 23. Generally young females tend to have a lower level of overall confidence Male Female 45 40 35 30 25 20 15 10 5 0 Nigeria Brazil China India US UK Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 24. Apart from in Brazil and India the over 25s tend to have a lower level of overall confidence Under 25 Over 25 45 40 35 30 25 20 15 10 5 0 China Nigeria Brazil India US UK Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 26. One similarity between all markets however is the importance of their mobile, and this device is certain to have a big impact on young consumers lives across the developing and developed nations Mobile phone is very important/important to them 96% 92% 89% 80% 80% 73% Source: On Device Research YCCI Brazil, China, India, Nigeria, US, UK n = 5600 August 2012
  • 27. Summary • Overall young consumers in growth markets are at least twice as confident, compared to those in developed markets. Confidence is being driven in growth markets by a very positive outlook for the economy and future job prospects. • Young consumers in growth markets haven’t been jaded by a hard hitting recession that those in developed markets have, and there is a serious risk of young people in developing nations becoming the ‘lost generation’. • Growth markets optimisms towards their economy, transfers into views on buying large purchases and provides a fantastic opportunity for UK and US companies looking to export into these markets. • However when exporting to growth markets, companies must understand the different business practices, regulations, infrastructure, cultural differences and population makeup - in Nigeria 60% of the population is under 25, which impacts product demand. • What is clear, is that the mobile device is very important in the lives of young consumers all over the world, which will be reflected in not only how we research these consumers, but also how marketers communicate and transact with them. Contact us at info@ondeviceresearch.com to add in your own survey questions
  • 28. Sarah Quinn sarah@ondeviceresearch.com +44 (0)207 278 6627 www.ondeviceresearch.com @ondevice Follow us on Slideshare
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  • 30. On Device Research Services
  • 31. On Device Omnibus • Contact hard to reach people in emerging markets quickly and cost effectively • Survey up to 1,000 respondents per month in Brazil, India, China and Nigeria, UK and US • Robust, sample of 16-34 year old consumers • Online interface for data analysis 1-3 Countries 4-6 Countries Per Complete Total Cost for Per Complete Total Cost for 5 Discount (£) 1 Country (£) Countries 1-2 Questions £0.50 £500 20% £0.40 £2000 3-5 Questions £1.00 £1000 20% £0.80 £4000 6-10 Questions £1.50 £1500 20% £1.20 £6000 10-15 Questions £2.00 £2000 20% £1.60 £8000
  • 33. On Device Research uses the mobile Internet to gain access to consumer opinions at any time, place or country So far we’ve surveyed over 1.4 million consumers across 53 countries
  • 34. We make mobile research work…
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