Consumer electronics is set to be one of the strongest retail sectors running into Xmas say research Companies GFK and Gartner. At the same time MasterCard has said that retail sales around Australia are predicted to grow 4.5 per cent, compared to the same time last year.
Using the MasterCard Worldwide Index of Consumer Confidence the credit card Company has said that despite consumer confidence dropping, 22.1 points to 42.8 in their latest survey retail sales are expected to top $104 Billion over the next six months with one GFK executive in Australia claiming that “consumers are turning to consumer electronic goods as a form of therapy and a pick me up” as a result ales are expected to stay high with the sector achieving between 9 & 11% growth.
According to the MasterCard survey the outlook on quality of life saw the biggest drop for Australia, down 28.1 points to 32.7.
Australians have become increasingly pessimistic about the future, with confidence dropping “The economic slowdown has become a major concern for many Australians, yet despite rising petrol prices and the risk of further interest rate rises by the big four banks, retail spending remains strong,” says Eddie Grobler, executive vice president, Australasia, MasterCard Worldwide.
“This is indicative of the strong period of economic growth Australia has experienced over the last decade. Australians may be feeling less confident as they hear about a possible slowdown in the economy, but they continue to manage their retail spending appropriately,” he says.
Across Asia/Pacific, retail sales are predicted to continue their strong showing for the second half of 2008 despite growing concerns surrounding the international financial market unrest. Across Asia/Pacific, retail sales are predicted to continue their strong showing for the second half of 2008 despite growing concerns surrounding the international financial market unrest.
All 12 Asia/Pacific markets are expected to continue seeing positive growth in retail sales, with China taking the lead once again as it did in the same reporting period last year. Retail sales in China are estimated to reach 5566 billion Yuan, representing a sturdy 18.0% year-on-year growth. The outlook for Hong Kong continues to be bullish, with year-on-year growth predicted at 12.7%. Other markets with strong growth set against the backdrop of subdued economic outlook include Indonesia, Malaysia and Philippines, with year-on-year growth expected to reach 12.0%, 9.3% and 8.6% respectively.