A Global Nielsen Consumer Report

June 2008 Consumer Confidence, Concerns, Spending and Attitudes to Recession a global Nielsen consumer report

INSIDE: Consumer Confidence takes a tumble Taiwanese consumers on a roll Norway and India ride the wave of economic slowdown Hard times ahead for New Zealand, the US and Japan The pessimistic majority Looking for the silver lining – personal finances and job prospects No spare cash once all the basics covered In recession now, or heading that way Work/life balance just as important as economic factors Consumer Confidence takes a tumble

After months of speculation and uncertainty around the global sentiment around economic and social concerns across 511 economy, it appears the penny has finally dropped for the world’s countries. The latest Nielsen Consumer Confidence Index has consumers. Consumer confidence worldwide has fallen to its plunged to 88 - down six points in the last six months – the largest lowest level in several years, according to the Nielsen Global single drop the Index has recorded in the last three years. Consumer Confidence Index, the definitive gauge of consumer

Nielsen Global Consumer Confidence Index 1st half, 2008

160 -6 -11 0 -4 -2 5 -9 -11 -11 3 3 2 -9 -12 -3 -8 -9 -13 -1 -5 -4 -18 -12 -3 -10 -5 3 1 -5 -5 -5 -7 -16 14 -17 -14 -15 -3 0 -2 -17 -4 -10 -2 -9 -5 -4 -10 140 129 120 122120 120 109 111 110 109 106 105 106 105 102 104102 102 101 99 99 99 99 98 97 97 96 95 95 94 100 94 93 92 89 Global average: 88 87 87 86 84 83 83 82 79 79 80 78 77 77 76 70 67 67 60 51 50 49 40 20 0

IL IT JP IN BE SP FR DK NL HK RU BZ CA SG PH VE TH US SA UK EG TK PG OZ VN PO SW CO FIN MY NZ IRE MX TW NW PAK CHI CZE EST LAT UAE ARG LITH AUT GRE GER KOR SWZ CHN HUN INDO

1st half 2008 Changes 1st half 2008 vs. 2nd half 2007

Base: All respondents

151 Markets Covered: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia,Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, United Kingdom, US, Venezuela and Vietnam.

1 Consumer confidence fell in 39 out of 48 countries in the past six months, with New Zealand, USA and Latvia suffering the deepest Consumer Confidence Index declines. Among the 39 markets2 recording a decline in consumer confidence, 15 fell by double-digits. 2H 2007 1H 2008 “The last six months have been the most turbulent period for the 101 global economy in several decades. When the USA sneezed at the 99 101 95 92 92 94 outset of the sub prime disaster nearly a year ago, the rest of the 89 89 88 85 world quickly caught a cold. No region or country has been spared 83 the domino effect of the US sub-prime and credit crisis”, observed David Parma, global head of Customized Research, The Nielsen Company.

“Consumers around the world are struggling with the same global issues that are impacting their daily lives. It’s an unfortunate pendulum. On the one hand we are seeing soaring global oil prices, rising commodity prices which are impacting grocery prices, rising interest rates and increasing inflation. This is happening in tandem with falling property prices, weakening labour markets, decreasing industrial output levels and growing Latam EEMEA Asia North Europe Global Paciﬁc America Average unemployment rates which have all resulted in less spending power for the average person. Overall, it’s not a good picture,” Base: All respondents commented Parma.

Taiwanese consumers on a roll

When the USA sneezed at the outset of the Only Taiwan bucked the global trend of economic gloom, posting sub-prime disaster, the rest of the world quickly a buoyant 14 point increase in Nielsen’s Consumer Confidence caught a cold. Index in the past six months – up to 83 from 69 points, in the face of a landslide election win for Ma Ying-jeou in March on a David Parma, global head of Customized platform heavily focused around economic growth. Research, The Nielsen Company This new-found atmosphere of buoyancy and stability has clearly had a positive effect on consumer sentiment. “Taiwan’s new- found optimism is driven by a belief that the new government can Across the regions, the US suffered the biggest fall in confidence, inspire confidence and deliver a better future for the country,” dropping a hefty 17 points, while in Europe, the Nielsen Consumer said Mitch Barns, President, Nielsen Greater China. In past Nielsen Confidence Index dropped six points to 83. The Index fell three Consumer Confidence surveys, Taiwanese consumers cited points in Asia Pacific and EEMEA, and two points in Latin America. political stability as their major area of concern. In the most recent survey, Taiwanese concern for political stability has slipped to sixth place, behind the economy (54%) and personal issues such as work/ life balance (38%) and job security (20%). Nowadays, only one in 10 Taiwanese consumers cite political stability as a major concern.

2 Three markets – Colombia, Venezuela & Israel – added in April 2008; no trend data available from previous survey.

2 One market’s trash is another’s treasure – Norway Hard times ahead for New Zealand, the United and India ride the wave of economic slowdown States and Japan

Norway, India, Indonesia and Denmark topped global rankings as Consumers in three of the world’s most developed economies – the most optimistic nations in Nielsen’s Consumer Confidence the United States, Japan and New Zealand, have taken a serious Index. Aside from consistently high consumer confidence, the two turn in the last few months. Not surprisingly, consumer confidence most optimistic nations in the world, Norway and India, share has fared badly In the United States, the world’s largest economy, something in common: Their economies are benefiting from the epicentre of the sub-prime housing and credit crises. Consumer by-products of economic slowdown. Norwegian consumers once confidence in the US plummeted 17 points in the last six months, again claimed top honours as the world’s most confident, with a a drop second only in magnitude to New Zealand’s. score of 129, seven points ahead of booming India. Confidence in “With high gas prices, falling property values, food inflation and Norway did take a six-point dive in the six months to April, but other economic pressures, it’s not a surprise that the economy is a this pessimism may not last long. For oil-rich Norway, rising fuel top concern for many Americans,” said Parma. “Manufacturers prices, the bane of many consumers across the globe, are a golden and retailers take note – because clearly, value for money is more ticket: A recent estimate released by the Norwegian government important than ever.” reveals that for every NOK 10 increase in the price for oil, Norway will earn an extra NOK 6.1 billion. This means Norway stands to The majority of United States consumers have a bleak view of the gain an extra NOK 100 billion (approximately US$19.3 billion) economy. Sixty-six percent of U.S. respondents have a pessimistic from oil exports alone3. view of their local job prospects over next 12 months, with 50 percent saying they’re not so good, and 16 percent calling them In India, home to the world’s second-most confident consumers, downright bad. Only three percent of United States consumers employment rates will rise in inverse proportion to the developed consider their job prospects excellent. world, thanks to India’s enthusiastic adoption of workforce optimisation - the “outsourcing bug”. In recent years, India has In the last 12 months, consumer confidence in Japan, the world’s established itself as a hub for outsourcing technical and support second-largest economy, has plunged 19 points and Japanese staff; as belts in the world’s leading economies tighten, we may consumers are not expecting things to improve anytime soon. In well see India’s economy – and the confidence of its consumers – April, as the survey was being conducted, Japan’s unemployment soar. rate hit a seven-month high, following a spate of layoffs in the construction sector , and the effect of the US sub-prime crisis on Other countries posting an increase in consumer confidence were Japanese exports were beginning to trickle down to consumers’ the Netherlands (+5%), Russia, Poland, Czech Republic (+3%), hip pockets4. In modern-day Japan, there also exists a general Brazil (+2%) and Belgium (+1%). Consumer confidence remained concern about the sustainability of the economy in the face of unchanged in Germany and Indonesia. social factors. “Japan’s rapidly ageing population is matched by a massive pension crisis and Japanese consumers have lost confidence in their government’s ability to resolve this growing problem,” Parma said.

3 “Norway oils the economy”, The Norway Post, May 15 2008. 100 billion NOK is approximately US$19.3 billion. 4 “ Japan Economy Under Pressure” – The Financial Express, May 30 2008.

3 The most remarkable drop in confidence came from New Zealand, products, indicating that consumers are switching into belt- which plunged a staggering 18 points in the last six months. tightening mode,” commented Ooi Pin Pin, Associate Director, Despite a reasonably buoyant economy, a strong labour market Retailer Services, Singapore. and low levels of unemployment, consumer confidence has For many emerging countries in Eastern Europe and Asia that have dropped to its lowest level in a decade mainly due to interest enjoyed the fruits of economic growth and boom in recent years, rates, which have skyrocketed to 8.25 percent - one of the highest the last six months have been a stark wake-up call as consumers in the developed world. Over half (53%) of New Zealanders find themselves struggling with double-digit inflation, rising indicate that a rise in interest rates would be their major concern unemployment rates and stagflation for the first time in a decade. in the event of a downturn in their local economy. Inflation, too, is a factor: food prices in New Zealand have risen 1.8 percent since In Western Europe, consumer confidence took the biggest tumble December 2007, and transport costs for the same period have in Spain (down 16 points) and the UK (down 15 points). In the last risen 0.8 percent5. According to Nielsen, 13% of Kiwis say they twelve months, Spain has suffered the biggest fall in consumer have no spare cash after they have covered living expenses, confidence globally, with a drop of 24 points. Consumer confidence topping the Asia Pacific region. And as if they didn’t have enough in Italy, which suffered the biggest drop in consumer confidence in troubles, consumers in New Zealand are also plagued by the the previous survey, fell a further four points from 80 to 76 points. threat of a global economic downturn – a very real threat in the Nine in 10 Italians believe their nation is currently in recession. eyes of 34 percent of Kiwis – as the country’s reliance on trade “Consumers have many reasons to feel pessimistic right now and with currently plummeting economies such as the United States the stark reality is that there’s not much out there to feel optimistic and Japan makes them particularly vulnerable to a domino effect. about. It’s not surprising that three in five (56%) global consumers think their country is currently in a recession. Even if their country The pessimistic majority is not officially in recession and has not recorded two quarters of Meanwhile, right across the globe, things aren’t looking much negative growth – the snowball effect of the credit crunch and brighter. Latvians are struggling to cope with runaway inflation rising inflation has taken its toll and officially or otherwise, they which increased to 17.5 percent in April – the highest inflation rate certainly feel like they’re in recession,” said Parma. among the 27 EU nations. “Electricity costs have risen nearly In addition to escalating global issues that have impacted forty percent in Latvia in the past year and food prices are up everyday lives, many countries are grappling with serious twenty percent. Things aren’t looking good for many already cash- domestic troubles of their own – increasing immigration concerns strapped Latvians, and stagflation is a real threat”, remarked Parma. in UK and Italy, power shortages and rising crime in South Africa, Across Asia Pacific, consumer confidence in Australia (-11), Hong loss of confidence in political stability and strikes in Europe, and Kong (-9), Vietnam (-11), Singapore (-12), and the Philippines (-9) the devastating effects of natural disasters in Asia. also sank significantly. In Australia, continually rising interest rates and an impending budget announcement from a newly elected government left consumers unsteady in this usually bullish market. In other markets across Asia, particularly Vietnam, China and Singapore, escalating inflation continues to be a concern. 67 percent of consumers across Asia Pacific cited inflation as their biggest concern in the event of an economic downturn. In Singapore, trends in consumer purchasing behaviour, as revealed in Nielsen’s recent ShopperTrends study, are suggestive of a downturn in confidence. “In Singapore, we are seeing significant tell-tale trends of substantial growth in Private Label

5 Statistics New Zealand Consumers Price Index, March 2008

4 Looking for the silver lining – personal finances and job prospects Perceptions of State of Personal Finances over the NEXT 12 Months: Top 10 Optimistic So far, consumers’ negative view of the global economy does not seem to be affecting their perceptions of their own finances in many countries. Over half (52%) of consumers take an optimistic 100% Excellent Good view of their personal finances, with consumers in Latin America 90% by far the most optimistic. A whopping 67 percent of consumers 80% 79% 79% 79% 75% in this region, and 72 percent of Brazilians and Colombians, consider 72% 72% 71% 71% 70% 69% the state of their personal finances to be either good or excellent. 70%

Bullish Denmark, India and Indonesia lead the charge, with four in 60% five (79%) of consumers optimistic about the size of their wallets. 58% 50% 67% 59% 62% 40% 73% 63% 61% 64% 67% 64% Perceptions of State of Personal Finances over the 30% NEXT 12 Months 20% Excellent Good Not so good Bad 10% 21% 12% 16% 100% 6% 9% 11% 7% 10% 3% 6% 8% 12% 12% 10% 0% 3% 5% 90% India UAE Brazil Russia 80% 26% Norway Denmark Indonesia Colombia 30% Hong Kong 35% 35% Netherlands 70% 35% 40% Base: All respondents 60% 50% 40% 58% Perceptions of State of Personal Finances over 30% 53% 47% the NEXT 12 Months: Top 10 Pessimistic 47% 43% 43% 20%

10% 100% Not so good Bad 9% 6% 6% 0% 4% 3% 5% Latam EEMEA North Asia Europe Global 90% 87% America Paciﬁc Average 79% 80% 76% Base: All respondents 71% 70% 16% 63% 43% 28% 16% 60% 57% 57% 56% 56% 56% 16% 50% 13% 12% 10% 9% 18% 40%

30% 60% 55% 48% 51% 46% 47% 44% 44% 45% 20% 38% 10%

UK Japan Italy France Turkey Taiwan Portugal Hungary Germany South Korea Base: All respondents

5 Global perceptions of job prospects took an eight percent nosedive in the last six months, with a mere six percent of global consumers Perceptions of Local Job Prospects over the NEXT claiming to have excellent job prospects over the next 12 months. 12 Months: Top 10 Optimistic A staggering 93 percent of Portuguese and 89 percent of Japanese believe their job prospects are either not so good or downright bad, Excellent Good mirroring their bottom league ranking in global consumer confidence. 100% 94%

In contrast, 94 percent of Norwegians and 86 percent of Indians, 90% 86% 83% the two top-ranking countries in the Consumer Confidence Index, 80% 78% 77% 75% 74% 72% 70% 70% are optimistic about their job prospects over the next year. 70% 55% 60% 60% Perceptions of Local Job Prospects over the NEXT 50% 68% 54% 50% 50% 63% 12 Months 40% 72% 64% 63% 30% Excellent Good Not so good Bad 20% 39%

100% 23% 10% 26% 23% 23% 8% 11% 12% 18% 15% 14% 15% 15% 7% 90% 0% 3% 6%

80% India UAE Norway Vietnam Denmark Australia Indonesia Singapore 44% 41% Hong Kong 70% 39% 42% Switzerland 40% 60% 48% Base: All respondents 50% 40% Perceptions of Local Job Prospects over the NEXT 30% 41% 36% 40% 36% 12 Months: Top 10 Pessimistic 37% 20% 28% 10% Not so good Bad 4% 9% 4% 6% 0% 5% 4% 100% Latam EEMEA North Asia Europe Global 93% 90% 89% 88% 88% America Paciﬁc Average 85%

80% 75% 72% 70% Base: All respondents 39% 36% 34% 30% 68% 70% 6% 66% 66% 52% 66% 23% 15% 60% 19% 14% 16% 19% 50% 40% 66% 30% 55% 53% 52% 52% 54% 52% 51% 50% 50% 48% 20% 41%

10% 0%

US Italy Japan Latvia Turkey France Greece Portugal Hungary Thailand South Korea South Africa Base: All respondents

6 No spare cash once all the basics covered How Utilise Spare Cash After Covering Essential Meanwhile for nations where the ‘credit crunch’ has become an Living Expenses: Top 10 Putting into Savings unwelcome household term in the last year, consumers’ wages and pay packets have been stretched to the maximum like never 100% before. In the latest Nielsen survey, one in five (26%) Portuguese 90% and one in four United States consumers said they have no spare 80% cash after monthly essentials have been paid. One in five Belgians, 69% Germans and French also said they have no spare cash along with 70% 65% 65% 63% 63% 63% 63% 61% 61% 61% 22 percent of UK consumers. 60%

For those who are lucky enough to have a little left in the kitty, 50% almost half are content to keep it there. 46 percent of global 40% consumers claim they put their spare cash into savings, up 4 30% percent in the last six months. The world’s most avid savers have 20% always hailed from Asia Pacific, where an average of 57 percent of 10% consumers choose to build their nest eggs. The top 10 saving countries are all from this region, with Singapore (69%), the 0% Japan Philippines (65%) and Thailand (65%) leading the charge. Taiwan Thailand Malaysia Vietnam SingaporePhilippines Indonesia Holidays and vacations continue to be a popular choice, with 34 Hong Kong South Korea percent of consumers across the globe planning to spend on a Base: All respondents well-earned vacation. One in three (32%) consumers choose to buy new clothes, up 2 percent from six months ago. The luxury and fashion-obsessed Russians are the world’s biggest clothes How Utilise Spare Cash After Covering Essential shoppers – a massive 68 percent of Russian consumers choose to Living Expenses: Top 10 Have No Spare Cash hang their money in their closet, with the Vietnamese lagging behind at 51 percent. 100% 90%

80% How Utilise Spare Cash After Covering Essential 70% Living Expenses: Global Average 60%

50% Putting into 42% savings 46% 40% Holidays/ 32% vacations 34% 30% 31% 26% New clothes 24% 22% 32% 21% 19% 19% 20% 17% 17% Paying off debts/ 30% 16% 16% 16% credit cards/loans 32% Out of home 28% 10% entertainment 29% Home improvements/ 25% 0% decorating 26% US UK 24% New technology France Turkey Finland 26% Portugal Germany Belgium Hungary Pakistan 23% South Africa Investing in shares 2H 2007 of stock/mutual funds 22% Base: All respondents I have no 13% 1H 2008 spare cash 12% 11% Retirement fund 10% Don’t know/ 2% undecided 2%

Base: All respondents

7 In recession now, or heading that way Do you think your country is in an economic Two in five (56%) consumers across the globe believe they are recession at the moment? currently in the midst of a recession. Of the remaining three-fifths Ye s No of consumers surveyed, one in four (26%) percent believe the situation 100% will escalate into a full-blown global recession in the next year. 8% 11% 12% 15% 90% 17% 18% 19% 19% 19% 20% 20% Topping global rankings for least expecting a global recession are 80% Russians, South Koreans and Vietnamese – about 60 percent said they do not expect a global recession in the next year. 70% 60% Interestingly, the Nordic nations of Denmark (50%), Norway 50% 92% 89% (46%) and Finland (45%) – countries that have always topped the 88% 85% 83% 82% Nielsen Consumer Confidence Index for their optimism – are most 40% 81% 81% 81% 80% 80% expectant that the world will be plunged into a global recession in 30% the coming year. In Singapore, while 18 percent of consumers 20% believe they are currently in a recession now, 47% believe a global 10% recession will hit in the next 12 months, indicating a high level of 0% future concern for global issues hitting their shores. It is interesting Italy Latvia Korea Spain Turkey Estonia France to note that South Korea topped regional rankings for believing Base: All respondents HungaryPortugal Thailand their own market is currently in a recession, with a staggering 81 United States percent of South Koreans laying claim to economic gloom in their local market. The remaining 19 percent are overwhelmingly Do you think we will have a global recession in the positive – of these South Koreans who do not perceive their next 12 months? market to be in the doldrums, 63 percent said they do not expect a global recession in the next year. Ye s No Don't know 100% 90% 28% 30% 37% 31% 32% Do you think your country is in an economic 80% 44% recession at the moment? Global Average 70%

Ye s No 60% 41% 100% 50% 44% 42% 39% 50% 90% 20% 40% 36%

80% 41% 30% 39% 47% 44% 70% 58% 20% 29% 28% 26% 24% 60% 10% 20% 19% 0% 50% Latam Asia Europe North EEMEA Global 40% 80% Paciﬁc America Average 30% 61% 59% 56% 53% All respondents who think their country is NOT currently in recession 20% 42% 10% 0% North Europe EEMEA Latam Asia Global America Paciﬁc Average

Base: All respondents

8 74 percent of Singaporeans and 70 percent of Filipinos cite Do you think we will have a global recession in the unemployment as their major concern should the economy take a next 12 months? Top 10 Yes dive. Recently, Singapore’s unemployment rate has crept to two 100% percent, a relatively low figure in regional terms, but an issue of concern in this predominantly manufacturing and service-driven 90% economy, where inflation hit a 25-year high in January of this year. 80% Not surprisingly, North Americans topped global rankings for 70% concern about falling property prices (24%) while one in 10 (11%) 60% Europeans said they would also be concerned about strikes. 50% 50% 47% 46% 45% 39% 39% 39% 40% 38% 38% 37% 37% What would concern you most, in the event of a 30% downturn in your local economy? Global Average 20%

10% Inﬂation 61%

0% Unemployment 53%

Chile India Norway Finland Ireland Turkey Sweden 25% DenmarkSingapore Malaysia Australia Interest rate rises Base: All respondents who think their country is NOT currently in recession Political instability 23%

14% During times of economic slowdown, global consumers rank inflation Falling property prices as their biggest concern (61%) followed by unemployment (53%), Civil conﬂicts 14% with interest rate rises lagging behind at 25 percent. Consumers in Strikes 6% Eastern Europe, the Middle East and North Africa (69%) are most Other 5% concerned about inflation, followed by Asia Pacific. In these regions, where economies are growing on an unprecedented scale, concerns None 2% about inflation are understandable. Four in five Latvians, Russians and Base: All respondents Lithuanians (84%) are most concerned about inflation. The inflation rate in Russia is on the up-and-up: Latest figures indicate Russia’s inflation rate is somewhere between 12 and 14 percent6 and the What would concern you most, in the event of a economy is ‘overheating’. Inflation in Lithuania shot to 11.7 percent in downturn in your local economy? Top 10 Inflation April, the highest rate since January 19977. 100%

90% 84% 84% 84% In Taiwan, 80 percent of newly empowered consumers cite inflation 80% 77% 80% 74% as their biggest concern in the event of a global recession. 77 percent 72% 71% 71% 69% 69% of Chinese consumers cited inflation as their biggest economic 70% concern – at the time the study was conducted, the inflation rate in 60% China had soared to its highest level in over a decade, with food 50% prices rising a staggering 23.3 percent. Since the survey was taken, 40% the Chinese government has released the latest inflation figures, 30% confirming consumers’ fears were well-founded – In the twelve 20% months to April 2008, inflation rose 8.5% to reach a 12-year high8. 10%

6 “ World Bank sees Russia FY inflation 12 to 14 pct, GDP seen up 8 pct”, Thomson 0% Financial News, 2 June 2008 China India Latvia Russia Taiwan 7 Lithuania VietnamArgentinaMalaysia “Lithuanian inflation shoots up in April”, New Europe, 19 May 2008 Hong KongSingapore 8 “China’s inflation jumps to nearly 12-year high” – MSNBC, March 11, 2008 Base: All respondents

9 Work/life balance just as important as economic factors The Economy

In these times of economic doubt and recession, the discrepancy Consumers in Taiwan, the US and Hong Kong showed the highest between working demands and quality of life is growing ever level of concern about the economy – over half (54%) of Taiwanese greater. Consumers in the developed world are striving harder to consumers rate it as either their biggest or second-biggest maintain their economic position in a rapidly opening marketplace concern. Not surprisingly, half (53%) of United States consumers and consumers in developing markets are poising themselves to are worried about the state of the economy over the next 12 cope with demand. A globalised marketplace and the rise of months. information technology have given rise to a landscape in which the boundaries between working and living have blurred to the extent that for some consumers, the two have become inseparable. Major Concerns over the next 6 months: “Demanding work schedules and careers have dominated the lives The Economy of many consumers in the past two decades. For many, such 100% Biggest concern Second biggest concern demanding lifestyles are starting to take their toll and there’s a 90% whole generation of consumers who are seeking to find and sustain a healthy work/life balance,” said Parma. Globally, one in 80% three (28%) consumers voted work/life balance as either their 70% biggest or second biggest concern over the next 12 months. This 60% figure is only seven percent behind the economy (35%), an 50% 50% especially low margin given the flagging consumer confidence 17% levels. 40% 36% 35% 35% 28% 30% 16% 15% 15% 22% 20% 13% Major Concerns over the next 6 months: 33% 11% 10% 20% 20% 20% 15% Global Average 11% 0% The economy 20% 15% 35% North Asia EEMEA Europe Latam Global America Paciﬁc Average Work/life balance 15% 13% 28% Health 9% 13% 22% Base: All respondents Job security 10% 8% 18% Children's education and/or welfare 9% 8% 17% Debt 8% 7% 15% Parents' welfare and happiness 4% 7% 11% Political stability 4% 6% 10% Major Concerns: The Economy Global warming 4% 4% 8% Top 10 Crime 3% 4% 7% Biggest concern Terrorism 2% 3% 5% 100% Biggest concern Second biggest concern Second biggest concern 2% 3% 5% Ability to afford retirement 90% Immigration 2% 2% 4% War 1% 2% 3% 80% Other concern 4% 4% 8% 70% No concerns 2% 1% 3% 60% 54% 53% 52% 52% 52% 51% Base: All respondents 50% 47% 42% 42% 41% 22% 18% 17% 18% 40% 24% 22% 13% 16% 16% 30% 19%

20% 35% 35% 34% 32% 34% 29% 28% 10% 26% 23% 25% 0%

US China Taiwan Latvia Turkey Thailand Lithuania Vietnam Hong Kong South Africa Base: All respondents

10 Work/life balance Health

Unsurprisingly, consumers in the burgeoning markets of China Health is a major issue of concern for almost a quarter (22%) of (42%), Vietnam (41%), Indonesia (38%) and the Philippines global consumers, with the highest average level of concern (38%) top the charts for concern about getting their professional recorded in Asia Pacific (26%). The most-health conscious and social lives in equilibrium. Nine of the top ten countries that consumers in the world hail from Poland (40%), Finland (39%) registered a high level of concern for work-life balance are and the Czech Republic (39%). emerging markets – with the exception of Portugal, where consumers are increasingly trading off their deeply ingrained lifestyle habits to cope with a sagging economy. Major Concerns: Health Top 10 100% Major Concerns over the next 6 months: Biggest concern Second biggest concern 90% Work/Life Balance 80% 100% 70% Biggest concern Second biggest concern 90% 60% 80% 50% 40% 70% 40% 39% 39% 37% 33% 32% 60% 30% 29% 29% 28% 30% 18% 20% 18% 22% 50% 21% 17% 14% 20% 19% 18% 16% 40% 36% 10% 22% 19% 21% 30% 15% 12% 15% 11% 15% 11% 12% 30% 28% 28% 17% 0% 13% 20% 20% 13% 16% 13% China Russia Latvia 9% Poland Finland Norway 10% 7% Hungary Vietnam 19% 17% 15% 15% Hong Kong 11% 9% 0% Czech Republic Asia Latam EEMEA Europe North Global Base: All respondents Paciﬁc America Average Base: All respondents Other Concerns

Political, environmental and social stability continue to be issues Major Concerns: Work/Life Balance of concern for consumers, but the highest levels of concern are Top 10 generally isolated to markets that are directly affected. In 100% Biggest concern Second biggest concern environmentally-unstable Thailand, 23 percent of consumers are 90% concerned about global warming. In political hotbeds Turkey and 80% Venezuela, 34 percent and 29 percent of consumers respectively 70% cite concern for political stability.

60% In Israel, where war and terrorism are a grim reality, 20 percent of 50% 42% 41% consumers think war will be a major concern in the next 12 38% 38% 38% 38% 37% 40% 37% 36% 36% months, and 19 percent feel similarly about terrorism. 32 percent 20% 20% 14% 16% 18% 30% 20% 16% 16% 14% 16% of South Africans and 28 percent of Venezuelans are concerned 20% about crime, whilst 22 percent of Dutch and 16 percent of Danish 22% 21% 24% 22% 21% 22% 10% 20% 18% 21% 20% consumers claim not to have a worry in the world. 0%

UAE China Brazil Taiwan Vietnam Malaysia Portugal IndonesiaPhilippines Singapore Base: All respondents

11 About The Nielsen Global Online Consumer Survey

The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, was conducted in April 2008 among 28,153 internet users in 51 markets from Europe, Asia Pacific, the Americas and the Middle East. The largest half-yearly survey of its kind, the Nielsen Global Online Consumer Confidence and Opinion Survey provides insight into current confidence levels, spending habits/intentions and the major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend. About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measure- ment, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com