Pakistani consumers are displaying a heightened sense of confidence about their financial wellbeing with 60% believing that they are financially better off than they were five years ago, according to a new study by global measurement company, Nielsen. This trend is particularly prevalent in developing markets throughout the Asia Pacific, Africa, Middle East and Latin America.
Nielsen’s Changing Consumer Prosperity study, which tracks consumers’ sentiment toward their financial position and willingness to spend, found that only 23% of consumers in Pakistan believe they are financially at the same level they were five years ago. It further highlights that 64% consumers account improved technology and 51% account better education as those products/services which are accessible to them today but were not accessible five years ago.
The Nielsen report reveals that 45% of consumers are spending more on groceries over the last five years. Other categories that are attracting increased consumer spending in Pakistan include education (54%), technology/communication (43%), utilities (39%), healthcare (37%), and clothing (35%).
Despite the positivity in consumers’ sentiment around their finances, many are feeling the pressure of rising living costs. Only 17% of consumers feel they are able to spend freely, while 38% say they are only able to cover their basic living costs.
“While many consumers are feeling more financially stable than they did in the past, this isn’t necessarily translating to willingness or confidence to spend freely,” observes Quratulain Ibrahim, Managing Director for Nielsen Pakistan.
Factors such as living costs, market volatility and consumers’ perceived circumstances could be playing a role in their cautious approach to managing their finances and spending across categories. The retail landscape is undergoing a shift in many markets especially in developing countries as consumers are making spending decisions on the basis of personal priorities, and price points.
About Nielsen Survey
The Global Survey is an Internet survey that takes about 30 minutes to complete. The sample is sourced from external sample providers. The sample includes internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of Internet consumers by country.
These quotas are reviewed at a country level by Data Science. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or 10 million online population for survey inclusion.