Mexico is one of the most anxious countries in the world due to economic instability and violence. The primary drivers of anxiety are the economic situation, escalating violence and crime, and a stagnant job market. Most Mexicans feel they have been cutting back on spending and spending more time at home. Fear for the future, especially concerning employment and education for children, is more prevalent than present anxiety.
2. AGENDA
Background ..............................................................................................................3
Methodology ............................................................................................................5
Executive Summary ..............................................................................................6
What’s making people anxious today? ......................................................11
A closer look at Mexico....................................................................................22
The recession’s impact on Mexico vs. other countries ..................................23
The recession’s impact on lifestyle ................................................................26
Media and the recession ................................................................................35
Shopping behavior and the recession ............................................................41
Looking to the future: The next generation ....................................................44
Brand Opportunities ..........................................................................................47
2
3. BACKGROUND
The JWT AnxietyIndex was launched in February 2003 during the run-up
to the war in Iraq.
It tracks the level and intensity of consumer anxiety and the drivers of
that anxiety. It examines safety and security concerns—the threat of
terrorism, potential and current military hostilities, crime—as well as
economic worries, such as the cost of health care, the cost of living and
job security.
The AnxietyIndex is also designed to discover consumer insights that will
help marketers formulate strategies during times of high or low anxiety.
3
4. BACKGROUND (cont’d.)
Mexico - GDP Percent Change
10.0
4.8
5.0 4.1 3.0 3.2
1.0 1.3 1.3
0.0
-5.0
% Change -6.5
-10.0
2003 2004 2005 2006 2007 2008 2009 2010
(est.)
JWT launched the baseline study for AnxietyIndex in Mexico in 2010.
Following the global economic downturn, forecasts predict a recession for Mexico in 2010.
Source: CIA World Fact Book
4
5. METHODOLOGY
Quantitative survey conducted by JWT SONARTM, our proprietary online
research tool
Data collected January 2010
296 adults aged 18-59, living in Mexico
Data weighted by age and gender
5
7. EXECUTIVE
SUMMARY
Mexico is one of the most anxious countries in the world.
Instability is part of the cultural code. This is primarily due to two factors:
Anthropologically, Mexico has faced violent change: the disappearance of
indigenous Aztec and Mayan culture, three invasions and numerous
revolutions.
Economically, there is a long history of frequent crisis. In the last 40 years,
Mexicans have struggled through at least four major economic crises and
various smaller recessions.
7
8. EXECUTIVE
SUMMARY (cont’d.)
The primary drivers of anxiety are the economic situation, the escalation
of violence and crime, and the stagnant job market. Feeling that they live
in permanent instability, people are pessimistic about the future.
Mexicans’ frustration and pessimism are exacerbated by the beliefs that
the political class is detached from the country’s reality, that the current
government is one of the most corrupt and that people are being treated
unjustly.
8
9. EXECUTIVE
SUMMARY (cont’d.)
A majority say they have been cutting back on spending—specifically,
doing less shopping, eating out and going to bars/clubs.
For Mexicans, home is a safe haven:
59 percent say they are spending more time at home.
People are both cautious about spending money and anxious about their
personal security.
For almost half of respondents, the crisis has led to greater closeness
with friends and family.
9
10. EXECUTIVE
SUMMARY (cont’d.)
Fear for the future is more prevalent than anxiety about the present. The
prevalent anxieties about the future are:
The employment situation my children will face when grown up
Affording a good education for my children
Having enough money for a comfortable old age
10
12. Overall anxiety levels in Mexico
are high—among the highest in the world ...
100
10 16 18
90 21 22 22
26 28
30
80 34 35
41 42
45
70 58
60 65
50 90
84 82
40 79 78 78
74 72 70
30 66 65
59 58
55
20 42
35
10
0
Japan Russia Saudi ArgentinaMexico UAE India U.S. Spain Brazil U.K. AustraliaColombiaCanada France China
Arabia
Brazil: January 2009
% Nervous/Anxious % Not Nervous/Anxious India, China: April-May 2009
Russia, Spain, Japan: March 2009
U.S., U.K., Canada, Australia, France: September 2009
Saudi Arabia, UAE: October 2009
Argentina, Colombia, Mexico: January 2010
Overall, given everything that is going on in the world, the country, and your family’s life,
12 how nervous or anxious would you say you currently are?
13. ... with one in five saying they are
“very anxious.”
50
% Very Nervous/Anxious
40
30
20
38
30
28 26
10 25 25 21
18 16
12 10
9 8 8 7 6
0 Russia India Saudi UAE Argentina Japan Mexico Brazil U.S. Spain France U.K. Australia CanadaColombia China
Arabia
Brazil: January 2009
India, China: April-May 2009
Russia, Spain, Japan: March 2009
U.S., U.K., Canada, Australia, France: September 2009
Saudi Arabia, UAE: October 2009
Argentina, Colombia, Mexico: January 2010
Overall, given everything that is going on in the world, the country, and your family’s life,
13 how nervous or anxious would you say you currently are?
14. ANXIETYINDEX MAP
SAFETY/SECURITY ECONOMIC
Political Leadership
900
Threat of
State of Economy
Terrorism
FURTHER 600
FURTHER
FROM FROM
“HOME” “HOME”
300
Potential Military Cost of Health
Hostilities Care
0
CLOSER CLOSER
TO TO
“HOME” Current Military Cost of Living “HOME”
Hostilities
Crime Job Security
SAFETY/SECURITY ECONOMIC
14
15. Mexicans are most concerned about the overall
economy, crime, the cost of living and job security.
Political Leadership
Mexico
1000
Global average
900
Threat of
800 State of Economy
Terrorism
700 819
600
500
400
300
153
200
Potential Military 72 Cost of
Hostilities 100
Health Care
76 0 253
79
475
349
Current Military Cost of Living
Hostilities 496
Crime Job Security
AnxietyIndex: % who are nervous or anxious/% who are not
15
16. Anxiety over the economy and jobs is
pronounced even compared with the other
LATAM markets we studied.
Political Leadership
Mexico
1000
LATAM* average
900
Threat of
800 State of Economy
Terrorism
700
819
600
500
400
300
200
Potential Military 153 Cost of
Hostilities 72100
Health Care
76 0 253
79
475
349
Current Military Cost of Living
Hostilities 496
Crime Job Security
AnxietyIndex: % who are nervous or anxious/% who are not
*Brazil, Argentina, Colombia, Mexico
16
17. On specific drivers of anxiety, Mexicans stand out for their
concern over the basics: food and jobs. But they also
demonstrate a conscience, worrying about global warming.
The War in Iraq
Impact of Global 800 The War in
Warming Afghanistan Mexico
Global average
600
Natural Disasters The Housing
Market
417 400
Safety of the 200
219 55 Gasoline Prices
Food Supply 54 92
198 312
0
138 783
Quality of
Products Imported 224 85 Food Prices
from China 215 143
657
The Government’s
Unemployment Rates
Budget Deficit
The State
of the Bank Failures
National Infrastructure The Stock Market
AnxietyIndex: % who are nervous or anxious/% who are not
17
18. Even compared to their LATAM neighbors,
Mexicans are much more worried about food
prices and unemployment.
The War in Iraq
The War in
Corruption 800
Afghanistan Mexico
LATAM* average
Impact of Global 600 The Housing
Warming Market
478
400
417
Natural Disasters 200
Gasoline Prices
34
33 56 139
219
0
783
Safety of the
198
Food Prices
Food Supply 138
85 143
224
215
Quality of
Products Imported
657
Unemployment Rates
from China
The Government’s
Budget Deficit Bank Failures
The State of the
The Stock Market
National Infrastructure
AnxietyIndex: % who are nervous or anxious/% who are not
*Brazil, Argentina, Colombia, Mexico
18
19. In general, Mexicans are very pessimistic
about the prospect of positive near-term change ...
WORSE BETTER
Safety of the food supply -22
1
The housing market Mexico -17
Global average -3
The stock market -24
More optimistic 2
Bank failures More pessimistic
-23
1
Unemployment rates -50
-27
Gasoline prices -72
-34
Food prices -70
-35
The government’s budget deficit -50
-29
% who expect it will get “better” minus % who expect it will get “worse” in the next six months
And over the next six months, do you expect that each of the following will get better, stay the same or get worse?
19
20. ... with most clearly feeling the effects of
the economic downturn.
Intensity of Personal Impact from Tough Economic Times
68
23
9
1 2 3 4 5 6 7 8 9 10
Haven’t Have
impacted impacted
me at all me a great
deal
No Impact Great Impact
%
On a scale of 1-10, where 1 means tough economic times haven’t impacted me personally at all and 10 means tough economic
20 times have impacted me personally a great deal, how would you rate yourself?
21. Though many feel they escaped the worst of it,
faring better than the country as a whole.
Intensity of Impact from Tough Economic Times
Impact on me = 68
Impact on Mexico
Impact on Mexico = 87
Impact on Me
1 2 3 4 5 6 7 8 9 10
Haven’t Have
impacted impacted
me at all me a great
deal
No Impact Great Impact
%
How would you rate the impact of the recession on your country?
21
24. Many think Mexico has suffered more from the
recession than other countries in the region ...
Impact of Recession on Mexico vs. Other Latin American Countries
70
60
50
50 45
40
30
20
10 5
0
My country has been My country has been My country has been LESS
MORE affected than other affected ABOUT THE SAME affected than other Latin
Latin American countries as other Latin American countries American countries
%
Thinking about the effect of the global economic downturn on your country, do you think your country has been affected more,
less, or about the same compared to other Latin American countries?
24
25. ... and most feel Mexico has suffered
more compared with wealthier countries.
Impact of Recession on Mexico vs. Richer Countries
80
73
70
60
50
40
30
23
20
10 4
0
My country has been My country has been My country has been LESS
MORE affected than affected ABOUT THE SAME affected than
richer countries as richer countries richer countries
%
Thinking about the effect of the global economic downturn on your country, do you think your country has been affected
25 more, less, or about the same compared to richer countries?
27. Mexicans consider ivory-tower politicians,
corruption, class inequalities and crime
as the primary social impacts of the recession.
% who agree
Politicians in my country are out of touch with
how the average person is being affected by the 91
global economic downturn
Government corruption in my country is as bad
as it has ever been 88
My social class is being dealt an unfair blow
because of this global economic downturn 88
I worry that the global economic downturn is
widening the economic gap between the rich 85
and the poor in my country
I’m worried that crime in my neighborhood will
increase as people fall on hard times 83
I have started to notice that the values in my
country have changed a bit as a result of the 75
global economic downturn
The economic crisis has brought me closer to
my friends and family
45
The economic crisis has distanced me from my
friends and family 39
%
How much do you agree or disagree with each of the following statements?
27
28. Behavior-wise, people are going out less and
are retrenching to their homes ...
Changes in Social Behavior as a Result of the Economic Downturn
2
Going to concerts/theatre 15
83
4
Going out to the movies 25
71
2
Going out to clubs, bars 18
80
2
Going out to eat 30
68
3
Going out shopping 26
71
3
Going out to parties/events 37 More
60 Same
59 Less
Spending time at home 26
14
%
Some people have told us that recently they have made some changes in how they are spending their time.
Looking at the list of activities below, are you doing each more often, less often, or
about the same amount as you did before the global economic downturn?
28
29. ... especially women.
% Doing Activity LESS by Gender
88
Going to concerts/theatre 79
76
Going out to the movies
65
87
Going out to clubs, bars
72
75
Going out to eat
60
81
Going out shopping
60
66
Going out to parties/events Women
53
Men
%
Some people have told us that recently they have made some changes in how they are spending their time.
Looking at the list of activities below, are you doing each more often, less often, or
about the same amount as you did before the global economic downturn?
29
30. As one might expect, people are spending
more time at home primarily to cut back on spending.
Why People Are Spending MORE Time at Home
To cut back on spending 86
I want to spend more time with my family 29
There seems to be less going on (parties,
concerts, etc.) 22
Because most of my friends are 16
I improved my home entertainment/bought new
items for home entertainment
3
Because of crime in my neighborhood 20
%
You mentioned that you have been spending more time at home recently.
What are the reasons you have been spending more time at home?
30
31. Crime is a significant driver of anxiety ...
How concerned are you about crime in your neighborhood?
60
81
50
40 41
40
30 19
20
16
10
3
0
Very Somewhat Not very Not at all
concerned concerned concerned concerned
%
Now, we’d like to talk to you about crime in your neighborhood.
How concerned are you about crime in your neighborhood?
31
32. ... and it appears to be tied to the downturn, as
anxiety related to crime has risen for many ...
How has your concern about crime changed over the past year?
80
70
60
52
50
43
40
30
20
10
5
0
Increased Stayed the Same Decreased
%
Thinking about the past year, has your concern about crime in your neighborhood increased, decreased, or stayed the same?
32
33. ... impacting the daily lives of
about half of Mexicans, especially women.
Has your routine changed due to concerns about crime?
80
70 Women
Men
60 56 54
50
46 44
40
30
20
10
0
Yes No
%
Have you changed your routine at all due to your concern about crime in your neighborhood?
33
34. Those who have changed their routine have
adopted coping mechanisms impacting various areas
of their lives, from showing less bling to going out
less to shopping in different places.
Has your routine changed due to concerns about crime?
Not wearing certain pieces of clothing or 72
accessories so I don’t attract attention 73
74
Going out less often than I used to 54
Not going out at night 66
56
Choosing to shop in different areas/stores 51
64
Buying fewer luxury items 53
53
Making sure that when I am out, I am not alone 57
39
Choosing different methods of transportation 33
57
Women
Entertaining myself and friends at home so I 18 Men
don’t have to go out as much 13
% Among those who have changed their routine due to concerns about crime
And how or what have you changed?
34
36. As in most markets, people understand the
downturn as much as it affects them but don’t
possess an in-depth understanding.
Knowledge of the Global Economic Downturn
60
50
50
43
40
30
20
10
6
1
0
I know a lot I know a fair I’ve heard of it, I’ve never
about it amount about it but that’s about it heard of it
%
How much would you say you know about the global economic downturn?
36
37. Mexicans get their news through
several sources, primarily TV and the Web ...
% of people who use source for news at least once a day
100
90 83
80 76
70
60 57
50 47
40
30
20
10
0
TV Online Radio Newspaper
%
About how often, if at all, do you get your current news and information from each of the following?
37
38. ... which have been a source
of information about the downturn.
% of people who saw news about the downturn through their usual
news and information sources
100
90 90 Women
80
82 Men
70
60
50
40
30
20 18
10
10
0
Yes No
%
Have you watched/read/heard reports about the global economic downturn from your usual
news and information sources?
38
39. Most Mexicans feel the media has covered the
downturn in the right proportion ...
Has the media coverage of the downturn been ...?
80
70
60
54
50
40
30
20
13 15
10
0
Too Little Right Amount Too Much
%
And do you think the media has been giving reports about the global economic downturn too much, too little,
or just enough coverage?
39
40. ... although a majority are unaware that
LATAM is expected to enter a recession this year.
Awareness of reports that Latin America will enter a recession in 2010
80
70
60
60
50
40
40
30
20
10
0
Yes No
%
Are you aware of the recent reports that Latin America will enter a recession in 2010?
40
42. In the past year, most people have changed their
behavior in response to the global downturn—though
these steps are more passive than active ...
Actions taken as a result of the global downturn
Paying closer attention to prices while I’m shopping 78
More actively looking for items on sale 77
Buying only when I am close to running
out of something 72
Doing more comparison shopping to make 71
sure I get the best price
Shopping more at discount or less expensive stores 62
Switching to lower priced brands 51
Buying more store brands/private label brands 44
Buying smaller amounts of items, more often 22
Using more coupons 19
Buying more in bulk 6
I haven’t changed my spending habits
as a result of the recession 5
%
Now, we would like to talk to you about your shopping over the past year. Please take a moment and think about how your
spending habits have or have not changed over the past year when it comes to what you buy for your household (i.e., groceries,
supplies, etc.). Which of the following, if any, have you begun to do as a result of the global economic downturn?
42
43. ... and defensive recessionary behavior
seems yet to have gripped many Mexicans.
% who agree strongly
I have started to cut back on things I don’t need 55
I worry that because of the global economic downturn
I won’t be able to keep up the lifestyle I am used to 43
I worry that because of the global economic downturn
I won’t be able to attain the lifestyle I want 37
I haven’t personally felt the effects of the recession
but have modified my spending habits just in case
16
I have noticed my friends have cut back in
their spending habits
12
The recession hasn’t really changed
what I do in my everyday life
11
%
How much do you agree or disagree with each of the following statements?
43
45. And while many Mexicans are anxious today, even
more are anxious about the world their children and
their children’s children will inherit ...
% of people anxious about themselves vs. anxious
about the future for their children/grandchildren
100
90 88
80 78
70
60
50
48
40
30 21
20
10
0
Anxious about Anxious about Very Anxious Very Anxious about
themselves their children/ about themselves their children/
grandchildren grandchildren
% Among those who have children
Given everything that is going on in the world, the country, and your family’s life, how nervous or anxious would you say you are
about the world your child(ren) or grandchildren will inherit?
45
46. ... which tends to manifest in financial concerns.
% agreeing strongly or somewhat
I worry about the effect this economy will have on the
ability of my child(ren) to find a good job
90
I worry about my ability to afford the type of education 86
I’d like for my child(ren)
I worry about my retirement funds and that I may 79
someday have to rely on my child(ren) for help
This is a good lesson for my child(ren) about living 64
within your means
I’ve lived through recessions before, and so did my
parents—my child(ren) will be just fine
45
The schools are doing a good job of teaching my 31
child(ren) about the recession
% Among those who have children
How much do you agree or disagree with each of the following statements?
46
48. BRAND
OPPORTUNITIES
Mexican brands have several opportunities to connect with anxious
consumers:
Speaking in a value voice. This can comfort people, with the brand acting
as a singular source of fairness and empathy.
Linking with symbols of stability and permanence. This can help brands
connect with consumers who are struggling with instability, disappointment
and confusion.
Example: An HSBC Mexico spot was developed to increase a perception of solidity,
exploring the simple idea that union and solidarity are the best way to confront
uncertainty and threat.
48
49. BRAND
OPPORTUNITIES (cont’d.)
Mexican brands have several opportunities to connect with anxious
consumers (cont’d.):
Helping to restore a sense of control for the consumer.
Example: A Ford Focus commercial dramatizes a test drive as a getaway chase. With
consumers anxious about their helplessness in an increasingly violent and hostile
environment, this spot empowers them by suspending the perception that they’re at
the mercy of an “oppressive” world. With the Focus they can escape it and take
control.
49
50. BRAND
OPPORTUNITIES (cont’d.)
Family togetherness is still high valued, as it’s one of the most important
symbols of stability. Dramatize the house as a haven from a hostile and
threatening world:
A Telmex “triple play” campaign shows a modern middle-class family with a
democratic dynamic among its members and a dog who symbolizes
stability.
La Lechera’s strategy focuses on strengthening family bonds and
sweetening relationships between household members.
A promotion from the chocolate brand Abuelita empathized with the need
to connect, giving people a chance to win tickets that would allow
expatriated family members to be reunited with their families in Mexico.
50
51. THANK YOU
Mark Truss Alexandra Suarez Ann M. Mack
Director of Brand Intelligence Market Research Director Director of Trendspotting
JWT Worldwide JWT Latin America JWT Worldwide
mark.truss@jwt.com alexandra.suarez@jwt.com ann.mack@jwt.com
www.AnxietyIndex.com
(c) 2010 J. Walter Thompson Company. All Rights Reserved.