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Standard Chartered

Standard Chartered Consumer Aspirations Study Study of 5,000 emerging affluent and affluent consumers across

Indonesia, India, Nigeria, Ghana and Kenya

2

Home improvement and

education are priority spending

areas for Nigerians

Seven in ten Kenyans aspire to

move to a better neighbourhood

Eight in ten Indians expect to

become wealthier in the next five

years

Savings are key to feeling wealthy

among Indonesians

Nine in ten middle-income Ghanaians

expect their economic situation to

improve in the next five years

The rise of the Asian and African consumer

3

Education

1

1

2

22

9

9

51

56

47

5

12

7

6

6

1

7

18

23

31

45

73

1

1

3

32

5

3

1

17

1

1

1

1

2

Kenya

Ghana

Nigeria

India

Indonesia

No

schooling

Some/completed

primary school

Some/completed

high school

Vocational

training

University/college

degree completed

Post-graduate

degree completed

Professional

qualifications

Other

Employment status

46

42

39

14

16

3

5

3

2

4

15

8

5

25

42

2

2

1

26

13

6

14

8

12

11

7

14

19

6

6

11

10

15

3

1

3

4

2

3

1

6

1

6

8

3

1

1

1

2

2

Kenya

Ghana

Nigeria

India

Indonesia

Self-employed Work for a family member's company

Work for a local company

Work for an international company

Work for the public sector

Student Unemployed Retired Stay-at-home mother/father

NA/ Other

Base: All respondents n=1,000 per country

Demographic snapshot (1) – Indonesians and Indians tend to

work for a local company, while more Africans are self-employed

4

25

15

18

36

31

22

20

22

20

25

12

17

16

2

7

5

10

10

1

2

4

10

7

1

1

31

28

27

40

34

Kenya

Ghana

Nigeria

India

Indonesia

One Two Three Four Five or more children No children under the age of 18

35

36

36

39

40

45

44

46

47

56

20

21

18

14

4

Kenya

Ghana

Nigeria

India

Indonesia

16-29 yrs 30-49 yrs 50+ yrs

Number of children in household under 18 years old

Demographic snapshot (2) – although not the largest age group,

more than one in three are under the age of 29


Age groups

5

The typical emerging market middle-income consumer

Meet Grace, the typical middle-income Ghanaian

Grace is 32 years old. She has been self-employed since leaving school at 16. Grace is generally

optimistic about the future and she expects her personal financial position to improve for at least the next

five years. A keen traveller, she hopes to spend more on holidays abroad, to America and Europe.

Meet Lina, the typical middle-income Indian

Lina is a 33-year-old Indian; her university education has led to a well paying local job. For Lina, becoming

wealthier means both saving and spending more, and she hopes to afford a luxury brand car and home

appliances in the near future.

Meet Ahmad, the typical middle-income Indonesian

Ahmad, a university-educated Indonesian, is 29 and lives in Jakarta with his wife and children. Ahmad

feels increasingly affluent and is confident that his family’s wealth will grow over the next five years.

Though savings are highly important to Ahmad, when he does spend, he hopes to buy more tech goods.

Meet John, the typical middle-income Kenyan

John is a 32-year-old self-employed worker; he lives in Nairobi with his wife and young son. John is

confident about his future economic situation. The things he expects to spend more on are not the

luxuries in life such as holidays, but essential items, such as housing and schooling.

Meet Joy, the typical middle-income Nigerian

Joy is a 37-year-old Nigerian; she has two children and is self-employed, running a small business.

Regarding her own personal finances, Joy is confident that they are set to improve in the next five years.

Luxury brands appeal to Joy and she expects to be able to purchase such high-end brands in the future.

The above people are fictional characters who represent the current and future

perspectives of each middle-income population.

6

There is optimism among middle-income groups that their

personal economic situations will improve in the next five

years

Technology. Technology is perceived by middle-incomers in each country as important for both their personal

prosperity and that of their country.

Saving. If they become

wealthier, Indonesians are

more likely to save than other middle-incomers

while Indians would both save and spend more. However, more Kenyans feel

wealthier when the amount they save increases.

Spending. Nigerians and Ghanaians expect their

spending to strongly increase, and are particularly

desirous to make improvement to their

household or to move house.

Travel. Except for Kenyans, there is a strong desire to travel, whether domestically or abroad. Nigerians are particularly hopeful in their future ability to travel.

Travel. Except for Kenyans, there is a strong desire to travel, whether domestically or abroad.

Nigerians are particularly hopeful in their future

ability to travel.

7

Societal and personal optimism

Spending priorities

Technology

Travel

Country snapshot by age

Methodology

8

Middle-income Indians are the most confident about the

growth prospects of their country


Level of confidence in the growth prospects of their country

12

16

30

45

18

28

32

36

37

46

16

21

18

12

22

23

14

10

4

12

20

17

5

1

1

1

Kenya

Ghana

Nigeria

India

Indonesia

Complete confidence

Some confidence

Hard to say

Not much confidence

No confidence at all

Don’t know

9

4

15

6

50

20

37

21

35

10

25

37

39

47

41

48

49

55

53

62

60

22

17

21

6

23

11

16

10

20

12

30

18

23

2

8

3

7

1

8

2

6

11

4

1

1

1

1

1

1

Last 5 years

Next 5 years

Last 5 years

Next 5 years

Last 5 years

Next 5 years

Last 5 years

Next 5 years

Last 5 years

Next 5 years

Significantly improved/improve

Improved/ improve

Stayed the same/ stay the same

Deteriorated/ Deteriorate

Significantly deteriorated/ deteriorate

Kenya

Ghana

Nigeria

India

Indonesia

Despite their recent personal economic situation improving

only moderately, Ghanaians’ future outlook is the most

optimistic


Personal economic situation, last five years and next five years

Expected change in personal

economic situation, last 5 years

versus 5 next years

10


Spending priorities

Technology

Travel


Methodology

11

48

50

44

38

78

5

6

9

8

2

44

41

45

52

16

2

1

1

2

1

1

1

1

1

2

1

3

Kenya

Ghana

Nigeria

India

Indonesia

Save more

Spend more

Both spend and save more

Save less

Feel more comfortable borrowing money

None of the above

Savings take precedence over spending in Indonesia, while in

other countries people are keen to both save and spend more

Base: All respondents, n=1,000 per country

Ways of managing finances if individuals become wealthier

12

17

19

16

14

15

63

55

52

54

60

12

19

28

28

20

9

6

4

4

5

Kenya

Ghana

Nigeria

India

Indonesia

Living in the neighbourhood I want

Increasing the amount I save

Having the car/accessories/ clothes/household technology goods etc. that I want to own

None of the above

Increasing the amount they save is the key to feeling more

wealthy across all five countries


Most likely to make individuals feel wealthier

13

Last

5

Next

5

Net

Change

Last

5

Next

5

Net

Change

Last

5

Next

5

Net

change

Last

5

Next

5

Net

change

Last

5

Next

5

Net

change

Kenya Ghana Nigeria India Indonesia

Making improvements to the housing

condition 51 77 26 62 93 31 67 95 28 62 77 15 56 79 23

Moving to a better neighbourhood 41 68 27 33 74 41 49 84 35 34 52 18 32 61 29

Spending more on holidays in my country 29 42 13 49 68 19 56 78 22 46 69 23 58 69 11

Taking international trips for business 5 22 17 8 54 46 22 67 45 25 49 24 19 45 26

Taking more holidays abroad 2 16 14 7 51 44 21 64 43 20 52 32 21 51 30

Socialising / eating out more often than

before 49 57 8 46 58 12 53 73 20 59 64 5 58 64 6

Buying the latest technology goods 66 75 9 81 89 8 69 91 22 72 80 8 73 81 8

Buying new household products/

appliances 38 57 19 65 86 21 64 88 24 63 77 14 57 74 17

Purchasing more insurance 22 48 26 33 75 42 34 70 36 53 65 12 48 64 16

Making more personal finance costs 20 39 19 25 50 25 32 67 35 43 50 7 33 36 3

Donating more to charities 52 74 22 46 89 43 58 83 25 41 62 21 71 87 16

Making more investments 25 52 27 36 75 39 43 79 36 42 65 23 35 68 33

Spending more on clothing/footwear/

accessories 64 71 7 72 80 8 63 83 20 59 68 9 35 42 7

Buying a new car or motorcycle 9 32 23 19 72 53 41 85 44 45 70 25 44 70 26

Using a spa/pamper treatments more often

than before 4 12 8 10 41 31 33 66 33 19 39 20 19 39 20

Spending on cars, travel, insurance and making more

investments are expected to grow across most countries

Top 5 anticipated net growth areas

for spending in the next five years Activities, last five years and next five years

‘Net change’ refers to the percentage point difference. ‘Last 5’ refers to ‘Last 5 years’ and ‘Next 5’ refers to ‘Next 5 years’. Base: All respondents, n=1,000 per country.

14

Luxury brand purchasing of clothing, footwear, accessories,

and cars or motorcycles is anticipated to grow over the next

five years

‘Net change’ refers to the percentage point difference. Base: All respondents, n=1,000 per country.

Spending on premium/luxury brands, recent and most likely

purchase in next five years


Clothing/footwear/accessories

Recent 8 19 13 22 5

Next 5 years 22 51 39 37 15

Net change 14 32 26 15 10

Household appliances

Recent 12 23 17 37 14

Next 5 years 27 49 41 49 22

Net change 15 26 24 12 8

Technology goods

Recent 20 31 22 58 46

Next 5 years 36 58 45 64 53

Net change 16 27 23 6 7

Food/groceries

Recent 8 11 17 30 9

Next 5 years 18 31 40 40 15

Net change 10 20 23 10 6

Car/motorcycle

Recent 21 23 24 35 28

Next 5 years 32 57 51 49 38

Net change 11 34 27 14 10

Top 2 anticipated net growth

areas for luxury brand spending

in the next five years per country

15

Middle-income Indonesians are the most optimistic that

they can afford the best education for their children

in the next five years

Base: Respondents with children under 18 in household; Indonesia n=656, India n=595, Nigeria n=729, Ghana n=716,

Kenya n=688

Current and future affordability of education of choice for children, among households with

children under 18

25

24

34

58

48

60

47

50

45

65

34

38

36

33

33

32

43

39

35

29

25

24

18

4

15

8

6

6

12

2

14

13

8

2

3

0

2

2

2

1

2

1

4

3

1

1

3

2

5

3

Current

In 5 yrs

Current

In 5 yrs

Current

In 5 yrs

Current

In 5 yrs

Current

In 5 yrs

Definitely Probably Unlikely No, not at all likely Don’t know/Not applicable

Kenya

Ghana

Nigeria

India

Indonesia

16


Spending priorities

Technology

Travel


Methodology

17

85

92

67

84 84

90

55

74 73

82

70

79

90 94

80

91 87

95

73

83

Access to the latest technology is most important for the growth /

development of my country

My life has been made easier with the use of new technologies (e.g. mobile phones, internet etc.)

I have increasingly used technology to organise my

finances over the past 5 yrs

I will increasingly use technology to organise my finances over the

next 5 yrs


Technology will play a pivotal role in both personal and

national economic prospects as it continues to make lives

easier

Base: All respondents, n=1,000 per country.

Attitude to technology – percentage of people who agree with the statements

18

37

2

26

2

16

6

43

3

29

3

31

11

51

6

34

8

28

0

84

72 70

72

52

23

87

64

85

61 64

24

Social networking Online banking Keeping up-to-date / news / current affairs

Shopping Studying / education Other


The internet is used for a variety of purposes in India and

Indonesia, while in Africa online commerce has yet to take off


How people use the internet

19


Spending priorities

Technology

Travel


Methodology

20

India

For all countries with the exception of Nigeria, domestic

travel is among the top two expected holiday destinations

Indonesia

India

Kenya

Nigeria

Ghana Ghana 68%

Americas 28%

Europe 26%

ASEAN 60%

Indonesia 56%

Europe 51%

Europe 37%

Americas 34%

South Africa 17%

India 47%

Europe 41%

ASEAN 39%

Kenya 28%

Americas 17%

East Africa 15%


Anticipated personal travel in the next five years, top three destinations

21

India

Europe is an anticipated destination for business travel in

Indonesia, India, Nigeria and Ghana

Indonesia

India

Kenya

Nigeria

Ghana

Americas 26%

Europe 24%

Ghana 20%

ASEAN 40%

Indonesia 39%

Europe 26%

Europe 30%

Americas 29%

Greater China 24%

India 27%

Americas 27%

Europe 24%

Kenya 26%

East Africa 14%

Greater China 11%


Anticipated business travel in the next five years, top three destinations

22


Spending priorities

Technology

Travel


Methodology

23

Indonesia age snapshot: younger consumers intend to undertake

more travel and other activities, while their older peers are more

cautious

All age groups in Indonesia

consider savings the most

important element to making

them feel wealthier than they do

today. However, younger

consumers (1629) are more

likely to consider material items

(23%) the key to being wealthy,

compared to the over 50s

(just 9%).

Anticipated personal travel destinations in

next five years 16-29 30-49 50+

Indonesia 61 52 44

ASEAN 64 58 63

Europe 61 45 37

Americas 41 30 24

75

59 65

73

83 81

46

64 66

80 74

35

60

44

63

16-29

30-49

50+

Activities*, next five years, total sample by age

Base: 16-29 n=403, 30-49 n=560, 50+ n=37

* Only the activities that demonstrate the biggest difference between age groups are included in this chart.

24

59 59 58

71

45 51

45 48

68

39 37 36 38

59

24

16-29

30-49

50+

India age snapshot: young Indians feel wealthier today than five

years ago and expect to prosper in the near future, leading to

increased savings and spending

Among the older

generation (50+ years old),

24% say that they would

save more if they became

wealthier while 68% would

both save and spend more.

Younger Indians (16-29

years old) are more

inclined to save, with 42%

claiming that they would

save more if they became

wealthier.

All age groups in India, but the older generation in particular, expect to spend more on travelling in

India in the next five years compared to traveling abroad (67% vs 46% respectively).


Base: 16-29 n=389, 30-49 n=468, 50+ n=143


25

Nigeria age snapshot: older people consider saving to be more

important for personal wealth than their young Nigerian

counterparts

Savings make older people in

Nigeria feel wealthier; among the

younger group, having the goods

they want is more likely to be the

key to wealth.

Expectations of spending in the

next five years are broadly similar

by age group. The biggest

difference is that older Nigerians expect to spend less on housing.

Anticipated personal

travel destinations in the

next five years

16-29 30-49 50+

Nigeria 8 12 13

East Africa 1 5 5

Europe 40 34 38

Americas 35 33 31

Slightly more older Nigerians

hope to travel close to home, in

Nigeria or Eastern Africa.

Things that make people feel wealthier than today

Base: 16-29 n=361, 30-49 n=457, 50+ n=182

4

16

23

57

4

16

28

52

4

17

30

49

None of the above

Living in the neighbourhood I want

Having the goods that I want to own (car/clothes/technology etc.)

Increasing the amount I save

16-29

30-49

50+

26

Ghana age snapshot: young Ghanaians aspire to spend and

travel more in the near future compared with their older peers

94

61 59 64

90

55 51

58

79

40 40 46

16-29 30-49 50+


Base: 16-29 n=356, 30-49 n=436, 50+ n=208


Purchasing goods is the second

most important activity in

making the young feel wealthier

(after saving money), while their

elders would rather move to a

better neighbourhood. This may

explain why young

middle-income Ghanaians are a

little more prone to buying tech

goods than the older generation.

The younger generation are more optimistic about the future: 56% of 1629 year olds expect their

personal economic situation to significantly improve, compared to 44% of the over 50s.

27

Kenya age snapshot: younger consumers are more interested

than their older counterparts in travelling abroad and in technology

Younger middle-income

Kenyans are the most likely to

spend more on all activities

compared to their older

counterparts. This could be

due to a greater sense of

optimism or having grown up

in a generally wealthier

society.

Anticipated personal travel

destinations in next five

years

16-29 30-49 50+

Kenya 19 31 36

China 9 4 4

Europe 19 11 8

Americas 24 15 7

Domestic trips within Kenya

are likely to remain the main

travel destination among all

age groups, especially older

middle-income Kenyans.

Younger respondents are

more likely to want to travel

further afield.

81

25

68 61

89

75

12

55 49

71 76

11

44 41

61

16-29 30-49 50+


Base: 16-29 n=350, 30-49 n=450, 50+ n=200


28


Spending priorities

Technology

Travel


Methodology

29

Methodology and Notes for the Reader

Country

Total sample size

Indonesia 1000

India 1000

Nigeria 1000

Ghana 1000

Kenya 1000

• Standard Chartered partnered with GlobeScan, an

independent global research consultancy, to

conduct this study.

• Fieldwork took place between 30 January and

25 February 2014 via face-to-face interviews

(in Nigeria, Ghana and Kenya) and online surveys

(in Indonesia and India).

• The sample for this study comprises both affluent

and emerging affluent respondents, according to

the definitions on the next page.

• The terms, “middle-income,” “Ghanaians,”

“Kenyans,” “Nigerians,” “Indians,” and

“Indonesians” are used to describe the full

sample, incorporating both affluents and

emerging-affluents sub-groups.

• All figures given in this report are percentages

unless otherwise stated.

http://www.globescan.com/

30

Definition of Affluent and Emerging Affluent

Indonesia definitions

Affluent A and B socio-economic groups; those who spend upwards of 2 million Rupiah ($172/£104/€188) a month on

household expenditures (e.g. food, bills, drink, petrol); the affluent group make up approximately 26 per cent of

all Indonesians.

Emerging

affluent

C1 socio-economic group; those who spend between 1 million and 1.5 million Rupiah

($86/£52/€63$130/£78/€94) a month on household expenditures; emerging affluents comprise approximately

23 per cent of all Indonesians.

India definitions

Affluent A1 socio-economic group; those whose household income is upwards of 60 thousand Rupees

($986+/£598+/€715+) a month; the affluent group make up approximately 4 per cent of all Indians.

Emerging

affluent

A2, B1 and B2 socio-economic groups; those whose household income is between 25 thousand and 59,999

Rupees ($411/£249/€298$98/£598/€715) a month; emerging affluents comprise approximately 25 per cent of

all Indians.

Nigeria, Ghana and Kenya definitions

Affluent

A, B socio-economic groups; determined by assessing household belongings, such as cars, refrigerators and

TVs, and activities, such as access to the internet. Each belonging/activity received a score, those with over a

defined total score are classed as affluent. The affluent group make up approximately 5 per cent of all

Nigerians, 10 per cent of all Ghanaians, and 7 per cent of all Kenyans.

Emerging

affluent

C1, C2 socio-economic groups; determined by assessing household belongings, such as cars, refrigerators

and TVs, and activities, such as access to the internet. Each belonging/activity received a score, those within a

defined score bracket are classed as emerging affluent. Emerging affluent comprise approximately 25 per cent

of all Nigerians, 35 per cent of all Ghanaians, and 16 - 20 per cent of all Kenyans.

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