Emerging market consumers confident their wealth will grow: StanChart

8 out of 10 Indians expect to become wealthier in next five years

Standard Chartered Bank on Monday said consumers in emerging market economies appear confident about economic growth in their respective countries, are highly optimistic about their personal prosperity and had clear aspirations for spending their newly-created wealth.

The bank had commissioned an independent study that surveyed 5,000 affluent and emerging affluent consumers across five of Standard Chartered's key markets — India, Indonesia, Nigeria, Ghana and Kenya. Standard Chartered said the study offered a new insight into the aspirations of these consumers, including their appetite to travel, invest in a new car, grow their wealth and buy luxury goods.

For instance, the study revealed that eight in 10 Indians expected to become wealthier in the next five years. Also, the study showed Indians and Indonesians tend to work for a local company, while the vast majority of the African middle classes prefer self-employment.

“Emerging market consumers have a confident outlook, with a majority of Indians, Indonesians and Nigerians expecting economic growth in their markets to continue, and a majority of consumers in all five countries expecting their personal financial position to improve in the next five years. As their wealth grows, they expect their spending priorities to change considerably,” Standard Chartered said.

Across all the five countries, more people plan to buy a new car or a motorcycle — at least seven in 10 Indians plan to splash out. Indians, Nigerians and Ghanaians also plan to buy at the luxury end of the market. Almost 50 per cent of consumers surveyed in India, Indonesia, Nigeria and Ghana plan to take more holidays abroad and consider Europe in their top three travel destinations.

“The rapidly growing middle class is a key driver of economic growth across emerging markets, and this research underscores the strong confidence of these increasingly powerful consumers. They expect their wealth to grow and have clear aspirations to build a better life for themselves and their families. Based on the findings of this research, we should expect to see a very considerable shift in spending patterns across emerging markets in the next five years, as economic power continues to shift eastwards,” Peter Sands, group chief executive officer of Standard Chartered, said in a statement.

The study showed that across all five countries, education is seen as a gateway to providing a better future and a majority of consumers intend to spend their increased savings on the best possible education for their children.

At least 50 per cent of Indians, Indonesians, Nigerians and Ghanaians feel certain that they can afford their choice of school or university in the next five years.
MONEY MATTERS...

• 8 in 10 Indians expect to become wealthier in the next five years
• 7 in 10 Indians plan to splash out
• Almost 50% of consumers surveyed in India, Indonesia, Nigeria and Ghana plan to take more holidays abroad
• At least 50% of Indians, Indonesians, Nigerians and Ghanaians feel certain that they can afford their choice of school or university in the next five years