How Global Consumers Feel About Their Finances
Given the allocation of global wealth, we ask: are most consumers satisfied or dissatisfied with their finance? We turn to McKinsey & Co. for answers to this question.
Earlier in 2018, McKinsey’s Max Magni, Anne Martinez, Rukhshana Motiwala, and Alex Rodriguez wrote about this. Consider some excerpts:
“In many countries, consumer sentiment has improved since 2015. And consumers feel more bullish about their ability to spend. More consumers around the world enjoy a sense of financial stability. In our third annual Global Consumer Sentiment Survey, conducted in September 2017 in 29 countries, respondents seemed more upbeat about their finances. Fewer consumers delayed purchases, cut back on spending, and felt uncertain about the economy. Across the globe, more consumers traded up to more expensive brands. At the same time, fewer consumers reported trading down to cheaper options.”
“The latest survey highlights three trends with implications for how firms pursue growth. More than half of consumers said they changed their buying behavior within the past year. Consumers continue to abandon mid-market brands. Thrift manifests itself in different ways in different parts of the world. And health-conscious consumers may not buy natural or organic products.”
“The global trade-up trend is slightly stronger than the trade-down trend. Yet, the survey shows vast differences at the country level. Last year, we saw a marked increase in trade-up behavior among Indian consumers. Then, we predicted a continuation of that trend. And it is driven largely by rapid urbanization, expansion of modern retail outlets, and premiumization in several product categories. These include beauty products, beverages, and packaged food. Indeed, the latest survey shows that India had the highest trade-up rate.”