Confidential & Proprietary Copyright © 2008 The Nielsen Company Consumer Confidence and Attitudes towards Recession IAA Conference 15 December 2008

Confidential & Proprietary • Copyright © 2008 The Nielsen Company

Consumer Confidence and Attitudes towards Recession

IAA Conference

15 December 2008

Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Executive Summary

• 38 out of 52 countries are pessimistic about the economic situation in their country in the 2nd half 2008– A major drop in the Consumer Confidence Index for the 2nd time in 12

months

• Economy now the major concern for consumers globally

• 63% of respondents believe they are in economic recession– Only 1 in 5 believe the recession will be over in the next 12 months

• Consumers likely to cut back on spending on clothes, entertainment, brown goods– Globally, 1 in 3 would switch to cheaper groceries to cope with tight money


114109

10410410299 98 98 97 97 96 96 96 96 95 94 94 93 92 92

89 88 88 8885 85 84 83 82 82 81

77 76 76 75 75 74 73 73 73 71

6562 61 60

50

44

36

112 110110 109

0

20

40

60

80

100

120

140

160

IN DK ID AE NO BR AU RU PH NL PL NZ VN CHCA CO CN VE IL AR PK FI

SG RO TH HK SEM

Y CZ AT ZA BEM

X US CL IE LT ES DEEG G

B EEG

R IT HU LV TR FRTW PT JP KO

Global average 84

Changes 2H08 vs.1H08

Changes 1H08 vs.2H07

Most of the countries are losing confidence in their economy for the 2nd time in 12 months

2H 2008 Nielsen Consumer Confidence Index

Source: Nielsen Global Online Consumer Survey / Oct-08Source: Nielsen Global Online Consumer Survey / Oct-08


9992 89

8388

9789 85 83

778485

LA EM AP NA EU GlobalAverage

1H 2008 2H 2008

Europe and North America are even under the global average



3% 2%

30%28%

50%

45%44%

36%

17%21%

10%

5%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global EU RO

Excellent Good Not so good Bad

Perceptions of Local Job Prospects over the NEXT 12 Months – Romanians quite optimistic



2% 4%

44%39%

53%

37%43%

34%

11% 13%5%

4%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global EU RO


Perceptions of State of Personal Finances over the NEXT 12 Months – Romanians quite optimistic



1%

27%25% 30%

50%50%

53%

18% 23%17%

3%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global EU RO


Perceptions of Good or Bad Time for people to buy the things they want and need over the NEXT 12 MonthsRomanians’ good perception towards jobs and finances will not necessarily translate into spending



14%

17%

4%

13%

10%

7%

2%

10%

7%

9%

13%

9%

14%

3%

1%

2%

8%

1%

3%

5%

3%

1%

1%

3%

8%

3%

7%

8%

10%

8%

9%

8%

6%

9%

3%

6%

12%

8%

9%

13%

9%

5%

2%

3%

20%

1%

2%

8%

3%

2%

2%

4%

4%

4%

6%

8%

The economy

Work/life balance

Increasing utility bills

Increasing food prices

Health

Children's education and welfare

Job security

Political stability

Debt

Parent's happiness and welfare

Terrorism

War

Increasing fuel prices

Crime

Major concern Second concern

Consumers’ major concernsRomanians’ top concerns more personal in nature

Global Consumer Romanian ConsumerSource: Nielsen Global Online Consumer Survey / Oct-08Source: Nielsen Global Online Consumer Survey / Oct-08


82%72%

40%

37%

18%28%

60%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global Average NA EU RO

Yes No

Do you think your country is in an economic recession at the moment?



18% 15%9%

53% 54% 55%55%

29% 28% 30%36%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global Average NA EU RO

Yes No Don't Know

Do you think your country will be out of an economic recession in the next 12 months?



What are consumers willing to do in a recession?- Staying home is the new way of going out!- Romanians quite attached to their brands and unwilling to downtrade

22

16

20

19

22

25

43

20

16

38

55

41

43

56

12

16

18

22

23

33

33

34

36

39

40

47

49

49

Cut down on smoking

Cut down on or buy cheaper brands of alcohol

Cut down on at-home entertainment

Look for better deals on home loans, insurance,credit cards

Cut out annual vacation

Cut down on holidays / breaks

Delay replacement of major household items

Use my car less often

Switch to cheaper grocery brands

Cut down on take-away meals

Delay upgrading technology

Cut down on out-of-home entertainment

Try to save on gas and electricity

Spend less on new clothes

Global

Romanian


Documents

Confidential & Proprietary Copyright © 2008 The Nielsen Company Consumer Confidence and Attitudes towards Recession IAA Conference 15 December 2008