What Africa’s emerging affluent consumers want: Razia Khan, Head of Economics, Africa at Standard Chartered
Nigerians and Kenyans are confident about growth in their markets and expect their incomes to grow next year. This is according to a Standard Chartered Bank
, targeting 7,000 emerging affluent consumers across seven of the bank’s markets.
Read the full report below.
“The majority of the people surveyed saw growth next year being good and when we looked at some of the African numbers, nine out of ten Nigerians, seven out of ten Kenyans expected to see their incomes grow next year,” said Razia Khan, Chief Economist Africa at Standard Chartered Bank.
Khan says what she found interesting, especially considering where we are today with China’s growth outlook and the correction in commodity prices, was how confident emerging markets are.
Read more: Affluent consumers in Kenya and Nigeria are confident about growth – CNBC Africa
Watch more videos from African Business Central.
“News of slowing emerging market economies, weaker currencies and falling commodity prices, prompting withdrawals of foreign investment, has obscured a longer-term story – one of great optimism.” – Standard Chartered Bank
This independent study of emerging affluent consumers across seven of Standard Chartered’s key markets offers new insights into the confidence, spending plans and long-term aspirations of people with fast-rising disposable incomes, living in large cities. As economic power continues to shift eastwards, these increasingly affluent, urban consumers in Africa and Asia are a key source of future demand for companies around the world.
The individuals in this study live in very different markets. Their backgrounds and circumstances vary greatly, from the more developed markets of Singapore and Hong Kong to the still developing economies of China, India, Nigeria, Kenya and Indonesia. Despite their huge differences, however, the emerging affluent have strikingly similar long-term aspirations. More importantly, they share a high degree of confidence in achieving their financial goals, making them a potentially crucial driver of global growth in the coming decades.
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Emerging affluent Nigerians are confident about Nigeria’s growth prospects, opportunities for young people, and their own long-term wealth goals, which include buying property. A high proportion are already self-employed, and those who are not self-employed feel optimistic about their chances of launching a successful business.
While emerging affluent Kenyans have a cautious outlook for growth in Kenya, they are confident in their personal finances. Funding children’s education is the key spending priority in the next year. In the next five years, they plan to buy property, mainly for investment purposes. Launching a business is a top priority longer-term, and almost all have a high degree of confidence in achieving their goals.
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Most consumers are confident
• The majority of the emerging affluent are optimistic about growth prospects for the next year.
Disposable incomes are rising
• Nearly two in three of the emerging affluent have seen their incomes rise in the past year, and almost three in four expect a rise in the next.
• The emerging affluent plan to save around 30 per cent of their income in the next year, up from 26 per cent in the past 12 months. The most common intended use for savings is emergencies, followed by retirement.
Spending plans will shift
• Short-term spending priorities vary: in the more developed economies, the emerging affluent are prioritising luxuries such as overseas travel and technology, while in the developing markets children’s education is a top priority.
• Longer-term spending plans are similar, with a focus on buying property and travelling abroad.
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Property tops the list
• Buying property is a top priority for the emerging affluent in the next five years, and tops the list of 10-year wealth goals.
Entrepreneurship is the key to success
• Over a quarter of the emerging affluent are business owners. This group is significantly more confident about their country’s growth prospects, their personal wealth and the chances of achieving their long-term goals.
• In developing markets, starting a successful business is a key long-term aspiration for the emerging affluent.
High confidence in 10-year wealth goals
• Whether it is to buy property or launch a business, the emerging affluent believe they will achieve their 10-year aspiration.
Unable to view the “The Emerging Affluence Report 2015: Standard Chartered Bank” report below? Download it here
The Emerging Affluence Report 2015: Standard Chartered Bank
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