2008 was a year of highs and lows for China – the Summer Olympic Games in Beijing were a monumental achievement while the Sichuan earthquake in May was tragedy.   The economy recorded 9 percent growth – the first year of single-digit growth since 2003 and below the average rate of 9.8 percent in the past 30 years.  Contrary to experiences in other countries, metrics actually rose in the last quarter of 2008: industrial output, private consumption, retail sales and bank lending all increased.  For the whole year, ad spending posted …

When the economy is buzzing, most companies can afford to overlook inefficiencies or take a broader view of what their customers want. But when times are tough, as they are now, companies have little choice but to re-evaluate how they do business if they hope to continue to grow and prosper. Managers are faced with essentially two choices: cut costs or understand precisely where the most profitable market demand is and align more effectively with it. Both options are difficult, but only one can achieve both short- and long-term objectives.

Australia and New Zealand withstood the shockwaves of the global financial crisis as long as possible, but by the end of 2008, ad spending took a hit.
In Australia, estimated ad spend in main media for the year was up 2 percent over 2007.  Year on year comparisons saw the first two quarters of the year posted growth of 14 percent and 5.5 percent, but by the third quarter, spending declined 0.5 percent while the fourth quarter saw a decline of 3.5 percent.

Media Outlet
2008 (US$000’s)
2007 (US$000’s)
% Change

TV
3,157,160
3,184,216
-1%

Newspapers
2,773,024
2,640,745
5%

Magazines
928,759
901,670
3%

Radio
515,324
508,041
1%

Cinema
63,786
61,966
3%

Outdoor
392,705
383,791
2%

Other
227,671
231,145
-2%

TOTAL …

New Zealanders are increasingly concerned about their job security and prospects, according to a new survey from Nielsen.  Job confidence has slumped, with 71 percent of respondents characterizing local job prospects as “not so good” or “bad,” compared to just 38 percent who had that view six months ago.
Consumer confidence has also taken a hit, showing a nine-point drop to 90 since the survey was last conducted in October 2008.  Despite that drop, Kiwis’ confidence is strong compared to other Asia Pacific countries – 12 points higher – and 13 …

Todd Hale, Senior Vice President, Shopper and Consumer Insight
The beginning of the year brought some surprising good news for retailers: retail sales (excluding automotive) rebounded in January and February.  While the figures were not earth-shattering – sales grew 1 percent and January and 0.7 percent in February – they were significant improvements on the last four months of 2008, where declines ranged from 1.2 percent to 3.1 percent.

Using data collected by the Nielsen Homescan Consumer Panel, we saw improved trip performance in the first two months of the year in …

Organic products – which are often priced at a premium over non-organic products – have taken a sales hit over the last 12 months as consumers have cut back discretionary spending, according to new analysis by Nielsen’s Director of Industry Insights, Tom Pirovano.  In March 2008, monthly sales of organic products grew 24 percent; a year later, growth almost came to a standstill of 1 percent, marking a dramatic shift from previous monthly growth rates of more than 30 percent seen in 2005 and 2006.
[click to enlarge graph]

“The recession and …

Indians tend to be optimistic by default: there is a popular adage that “whatever is happening, that is for the good!”  But Indians have cause to be optimistic in the current economic environment as the global recession seems to only have just brushed India thus far.  According to Nielsen’s consumer confidence index for the second half of 2008, India had one of the highest rankings among the 52 markets the company conducted its survey.
The survey found that 77 percent of Indian respondents considered the state of their personal finances to …

Each new day seems to bring more bad news about the economy.  With uncertainty and fear looming, American consumers have cut back on their shopping trips and changed the way they spend their hard-earned money.  For food retailers and consumer packaged goods manufacturers, these new trends do not necessarily spell doom.  If they know how to address consumers’ changing needs and can successfully engage them by appealing to their desire for value, significant opportunities remain.
Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously …

Even though the economy is mired in recession, a strong majority of Japanese business people describe themselves as “happy” according to a new survey from Nielsen Japan in collaboration with Aera Style Magazine.  In an online survey of 1,000 men, aged 25 to 49, 71 percent said they were happy.  Of those who said they felt “needed in their company,” 76 percent were happy, while only 48 percent of those who did not feel needed at work were similarly joyful.
Job security did not, somewhat surprisingly, affect an individual’s happiness as …

Few Americans have been untouched by the economic downturn gripping the country. But how we respond varies widely by demographics, according to a Nielsen study. Understanding how we differ in the ways we cut back can create opportunities for manufacturers and advertisers.
Nielsen created eight segments that divided households into groups based on their behavior and reaction to the decline.  Despite conventional thinking that these segments are based primarily on income, characteristics such as age, household size and location were important factors in determining groups based on how they cut back …