China and India unfazed by recession: JWT

Only 35 per cent of respondents in China say they are anxious about the current situation, compared to 90 per cent in Japan, 74 per cent in India and 79 per cent in the United States, where the study was first launched. 

The one sector in China that has seen significant impact is the export market, with up to 20 million layoffs. Coupled with China’s weak social security system, low-income respondents exhibited the most anxiety in the Chinese section of the survey. China's economy grew by 9 per cent in 2008, slipping into single digits for the first time in six years, with expansion in the final quarter just 6.8 per cent.

Another notable area where Chinese consumers showed a dramatic level of anxiety was over food safety issues, due to the 2008 milk scandal, which affected 300,000 people. 

Despite China’s low anxiety index, the survey found that consumers are taking measures to cut back spending and are buying less frequently or cancelling and postponing purchases. 

Indian consumers are also optimistic about near-term prospects for the economy following the country’s general election. 

Consumers are more concerned by security and terrorism issues, due to recent attacks in Mumbai, than by the recession.

Consumer behaviour is largely unchanged in the purchase of everyday items such as rice and shampoo. Consumers in India, however, admitted that they have been cutting back or waiting for promotions on branded apparel and shoes, while families are trimming their entertainment and dining-out budgets as well. One consistent area of spending was on mobile phones. Almost one-fifth of the respondents have recently upgraded their phone to a more expensive model. Thirty per cent of respondents admitted that they are trying to decrease their phone bill by talking less.