Consumers remain resilient Mckinsey Survey of 5 Asian Countries
Published on : Tuesday 14-04-2020
Even as they expect an impending hit to their personal finances, consumers across 5 Asian countries remain resilient according to a Mckinsey Survey.
McKinsey & Company, the trusted advisor and counsellor to many of the world's most influential businesses and institutions, conducted pulse surveys during the months of February and March 2020. At that point of time, Asian countries were absorbing the COVID-19 pandemic at markedly different rates, with the impact just beginning to bite in India and Indonesia even as China saw new cases stabilise and local transmission contained. The first survey was on February 21–24 and again on March 23–30, when the team also conducted initial surveys in India, Indonesia, Japan, and South Korea. Sample sizes varied from 582 people in India to more than 1,000 in China.
Consumers across these markets demonstrated varying degrees of confidence in the prospects for economic recovery, with those in earlier or later stages of the outbreak significantly more optimistic. These sentiments are likely influenced both by their awareness of the disease, recently announced government contingency measures such as movement restrictions and business rescue plans, and other news events. In China, consumer confidence had stabilised, with optimism that the economy will rebound in two–three months rising to 47 percent of respondents in late March from 43 percent the previous month. For the remaining four countries, the company will seek fresh responses on a regular basis to track how consumer sentiment evolves.
Interestingly, when asked how they expect to manage their household finances over the next two weeks, consumers in all surveyed markets said they expect both their income and savings to decrease, regardless of their expectations for economic recovery. Korean consumers were most pessimistic about the prospects for their income, while Indonesian consumers led in terms of expectations for decreased savings.
According to the research, most consumers expect their routines and personal/household finances to be impacted over the next two–six months. The exception is Japan, where a significant proportion expect the impact to last for more than seven months. The safety of family and overall public health are primary concerns, especially in India and Indonesia, while fears over economic stability and not knowing how long the crisis will last feature more prominently in Japan, South Korea, and China.
The COVID-19 pandemic is evolving rapidly, deepening the uncertainty for consumers and the economies they sustain. Consumer mind-sets will continue to shift as governments and central banks introduce unprecedented countermeasures and stimulus packages to mitigate potential impacts.
The survey and its findings are featured on the website of McKinsey & Company:
https://www.mckinsey.com/featured-insights/asia-pacific/survey-asian-consumer-sentiment-during-the-covid-19-crisis#
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