February 27, 2019: The consumers in Pakistan were showing enhanced sense of confidence about their fiscal strength as 64 per cent account improved technology and 51 per cent account better education as products/services accessible today were not possible five years ago.
A new study by global measurement company, Nielsen, has revealed that 60 per cent of them believe they are financially better off than they were five years ago.
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 per cent of consumers in Pakistan believe they are financially at same level they were five years ago.
The report revealed that 45 per cent of consumers are spending more on groceries over last five years. Other categories that are attracting increased consumer spending in Pakistan include education (54 per cent), technology/communication (43 per cent), utilities (39 per cent), healthcare (37 per cent), and clothing (35 per cent).
Despite positivity in consumers sentiment around their finances, many are feeling pressure of rising living costs. Only 17 per cent of consumers feel they are able to spend freely while 38 per cent say they are only able to cover their basic living costs.
Managing Director Nielsen Pakistan, Quratulain Ibrahim on Wednesday observed while many consumers are feeling more financially stable than they did in the past, this is not necessarily translating to willingness or confidence to spend freely.
The 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 basis of personal priorities, and price points.
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. 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 behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 per cent Internet penetration or 10 million online population for survey inclusion.