CONSUMER BEHAVIOUR: Canadian Consumer Confidence in 2010 - Nielsen

According to a recent survey by Nielsen Canada, Canadian consumer confidence is improving, with Canada as one of the countries showing the highest levels of confidence. In the report, Carman Allison, Marketing & Communications Director, Nielsen Canada, says, "Over the past six months Canadian consumers have stopped talking about 'recession' and changed the conversation to 'recovery'."
Retailers should keep this in mind - optimistic shoppers want to feel supported in their attitudes; most may have increased confidence but will still be cautious in their spending during this recovery period - according to the survey, 70% of Canadians feel Canada remains in a recession, despite the recession officially ending in Canada in the summer of 2009 (according to the Bank of Canada).

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Report Excerpt:

The Bottom Line
Consumer confidence is on the upswing, however there is a “but.” “While purse strings may be loosening in some markets, there is clearly a big difference in the pace ofexpected recovery between the emerging and developed markets,” said James Russo, Vice President, Global Consumer Insights, The Nielsen Company. “Consumers’ increased confidence is not yet translating into a widespread readiness to start spending.” On the plus side, Canada is among the countries showing the highest levels of confidence, and increases in the Nielsen index in Asian markets, as well as Brazil, continue to reflect signs that the economy is emerging from the global recession. Overall, more consumers are increasing savings and stock market investments, as well as spending more on “luxuries” such as entertainment, clothes, and vacations. Nearly one in two (48%) of global consumers surveyed said their personal financial outlook for 2010 will be excellent or good, up from 43% last June – and at 59%, Canadians are even more optimistic than that about their personal finances. In December 2009, 37% of global consumers described job prospects for 2010 as good or excellent compared with 30% in June 2009. Again, Canadians are especially optimistic, with 58% now calling job prospects for 2010 as good or excellent. The economy and job security remain the top two global concerns; however concern for job security continued to decline in the 4th quarter of 2009. In June 2009, 20% of global consumers cited job security as a main life concern, but this decreased to 13% in the last month of 2009 (and to 11% in
Canada).
On the whole, the economic picture – for Canada and globally – looks a whole lot brighter entering 2010 than it did in 2009. “A year ago, the world was in free-fall and consumer confidence hit an all-time low in Nielsen’s index,” said Russo. “As
governments acted quickly to install massive stimulus programs, we started to see the first green shoots of recovery at the end of Q1 2009. Global consumers crossed an important psychological milestone in Q3 2009, and began to believe the worst was over.
While consumers are beginning 2010 feeling even more certain that the worst is over, their next burning question is ‘When are things really going to get better?’.” “Even while showing faith that we are in recovery mode, Canadians are planning to retain some frugalities,” agrees Allison. “Economists expect this to be a slow recovery, so consumers will to continue to seek value and look for ways to stretch their shopping dollars in the near term, and maybe even for a longer period.”

Source: Nielsen Canada - Report: "Canada breaks into the top 10: A Canadian Perspective"