JWT AnxietyIndex: Mexico (January 2010)
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Mexico is one of the most anxious countries in the world due to economic instability and violence. The primary drivers of anxiety are the economic situation, escalating violence and crime, and a stagnant job market. Most Mexicans feel they have been cutting back on spending and spending more time at home. Fear for the future, especially concerning employment and education for children, is more prevalent than present anxiety.
JWT AnxietyIndex: Mexico (January 2010)
- 1. ANXIETYINDEX MEXICO JANUARY 2010
- 2. AGENDA Background ..............................................................................................................3 Methodology ............................................................................................................5 Executive Summary ..............................................................................................6 What’s making people anxious today? ......................................................11 A closer look at Mexico....................................................................................22 The recession’s impact on Mexico vs. other countries ..................................23 The recession’s impact on lifestyle ................................................................26 Media and the recession ................................................................................35 Shopping behavior and the recession ............................................................41 Looking to the future: The next generation ....................................................44 Brand Opportunities ..........................................................................................47 2
- 3. BACKGROUND The JWT AnxietyIndex was launched in February 2003 during the run-up to the war in Iraq. It tracks the level and intensity of consumer anxiety and the drivers of that anxiety. It examines safety and security concerns—the threat of terrorism, potential and current military hostilities, crime—as well as economic worries, such as the cost of health care, the cost of living and job security. The AnxietyIndex is also designed to discover consumer insights that will help marketers formulate strategies during times of high or low anxiety. 3
- 4. BACKGROUND (cont’d.) Mexico - GDP Percent Change 10.0 4.8 5.0 4.1 3.0 3.2 1.0 1.3 1.3 0.0 -5.0 % Change -6.5 -10.0 2003 2004 2005 2006 2007 2008 2009 2010 (est.) JWT launched the baseline study for AnxietyIndex in Mexico in 2010. Following the global economic downturn, forecasts predict a recession for Mexico in 2010. Source: CIA World Fact Book 4
- 5. METHODOLOGY Quantitative survey conducted by JWT SONARTM, our proprietary online research tool Data collected January 2010 296 adults aged 18-59, living in Mexico Data weighted by age and gender 5
- 6. EXECUTIVE SUMMARY 6
- 7. EXECUTIVE SUMMARY Mexico is one of the most anxious countries in the world. Instability is part of the cultural code. This is primarily due to two factors: Anthropologically, Mexico has faced violent change: the disappearance of indigenous Aztec and Mayan culture, three invasions and numerous revolutions. Economically, there is a long history of frequent crisis. In the last 40 years, Mexicans have struggled through at least four major economic crises and various smaller recessions. 7
- 8. EXECUTIVE SUMMARY (cont’d.) The primary drivers of anxiety are the economic situation, the escalation of violence and crime, and the stagnant job market. Feeling that they live in permanent instability, people are pessimistic about the future. Mexicans’ frustration and pessimism are exacerbated by the beliefs that the political class is detached from the country’s reality, that the current government is one of the most corrupt and that people are being treated unjustly. 8
- 9. EXECUTIVE SUMMARY (cont’d.) A majority say they have been cutting back on spending—specifically, doing less shopping, eating out and going to bars/clubs. For Mexicans, home is a safe haven: 59 percent say they are spending more time at home. People are both cautious about spending money and anxious about their personal security. For almost half of respondents, the crisis has led to greater closeness with friends and family. 9
- 10. EXECUTIVE SUMMARY (cont’d.) Fear for the future is more prevalent than anxiety about the present. The prevalent anxieties about the future are: The employment situation my children will face when grown up Affording a good education for my children Having enough money for a comfortable old age 10
- 11. WHAT’S MAKING PEOPLE ANXIOUS TODAY? 11
- 12. Overall anxiety levels in Mexico are high—among the highest in the world ... 100 10 16 18 90 21 22 22 26 28 30 80 34 35 41 42 45 70 58 60 65 50 90 84 82 40 79 78 78 74 72 70 30 66 65 59 58 55 20 42 35 10 0 Japan Russia Saudi ArgentinaMexico UAE India U.S. Spain Brazil U.K. AustraliaColombiaCanada France China Arabia Brazil: January 2009 % Nervous/Anxious % Not Nervous/Anxious India, China: April-May 2009 Russia, Spain, Japan: March 2009 U.S., U.K., Canada, Australia, France: September 2009 Saudi Arabia, UAE: October 2009 Argentina, Colombia, Mexico: January 2010 Overall, given everything that is going on in the world, the country, and your family’s life, 12 how nervous or anxious would you say you currently are?
- 13. ... with one in five saying they are “very anxious.” 50 % Very Nervous/Anxious 40 30 20 38 30 28 26 10 25 25 21 18 16 12 10 9 8 8 7 6 0 Russia India Saudi UAE Argentina Japan Mexico Brazil U.S. Spain France U.K. Australia CanadaColombia China Arabia Brazil: January 2009 India, China: April-May 2009 Russia, Spain, Japan: March 2009 U.S., U.K., Canada, Australia, France: September 2009 Saudi Arabia, UAE: October 2009 Argentina, Colombia, Mexico: January 2010 Overall, given everything that is going on in the world, the country, and your family’s life, 13 how nervous or anxious would you say you currently are?
- 14. ANXIETYINDEX MAP SAFETY/SECURITY ECONOMIC Political Leadership 900 Threat of State of Economy Terrorism FURTHER 600 FURTHER FROM FROM “HOME” “HOME” 300 Potential Military Cost of Health Hostilities Care 0 CLOSER CLOSER TO TO “HOME” Current Military Cost of Living “HOME” Hostilities Crime Job Security SAFETY/SECURITY ECONOMIC 14
- 15. Mexicans are most concerned about the overall economy, crime, the cost of living and job security. Political Leadership Mexico 1000 Global average 900 Threat of 800 State of Economy Terrorism 700 819 600 500 400 300 153 200 Potential Military 72 Cost of Hostilities 100 Health Care 76 0 253 79 475 349 Current Military Cost of Living Hostilities 496 Crime Job Security AnxietyIndex: % who are nervous or anxious/% who are not 15
- 16. Anxiety over the economy and jobs is pronounced even compared with the other LATAM markets we studied. Political Leadership Mexico 1000 LATAM* average 900 Threat of 800 State of Economy Terrorism 700 819 600 500 400 300 200 Potential Military 153 Cost of Hostilities 72100 Health Care 76 0 253 79 475 349 Current Military Cost of Living Hostilities 496 Crime Job Security AnxietyIndex: % who are nervous or anxious/% who are not *Brazil, Argentina, Colombia, Mexico 16
- 17. On specific drivers of anxiety, Mexicans stand out for their concern over the basics: food and jobs. But they also demonstrate a conscience, worrying about global warming. The War in Iraq Impact of Global 800 The War in Warming Afghanistan Mexico Global average 600 Natural Disasters The Housing Market 417 400 Safety of the 200 219 55 Gasoline Prices Food Supply 54 92 198 312 0 138 783 Quality of Products Imported 224 85 Food Prices from China 215 143 657 The Government’s Unemployment Rates Budget Deficit The State of the Bank Failures National Infrastructure The Stock Market AnxietyIndex: % who are nervous or anxious/% who are not 17
- 18. Even compared to their LATAM neighbors, Mexicans are much more worried about food prices and unemployment. The War in Iraq The War in Corruption 800 Afghanistan Mexico LATAM* average Impact of Global 600 The Housing Warming Market 478 400 417 Natural Disasters 200 Gasoline Prices 34 33 56 139 219 0 783 Safety of the 198 Food Prices Food Supply 138 85 143 224 215 Quality of Products Imported 657 Unemployment Rates from China The Government’s Budget Deficit Bank Failures The State of the The Stock Market National Infrastructure AnxietyIndex: % who are nervous or anxious/% who are not *Brazil, Argentina, Colombia, Mexico 18
- 19. In general, Mexicans are very pessimistic about the prospect of positive near-term change ... WORSE BETTER Safety of the food supply -22 1 The housing market Mexico -17 Global average -3 The stock market -24 More optimistic 2 Bank failures More pessimistic -23 1 Unemployment rates -50 -27 Gasoline prices -72 -34 Food prices -70 -35 The government’s budget deficit -50 -29 % who expect it will get “better” minus % who expect it will get “worse” in the next six months And over the next six months, do you expect that each of the following will get better, stay the same or get worse? 19
- 20. ... with most clearly feeling the effects of the economic downturn. Intensity of Personal Impact from Tough Economic Times 68 23 9 1 2 3 4 5 6 7 8 9 10 Haven’t Have impacted impacted me at all me a great deal No Impact Great Impact % On a scale of 1-10, where 1 means tough economic times haven’t impacted me personally at all and 10 means tough economic 20 times have impacted me personally a great deal, how would you rate yourself?
- 21. Though many feel they escaped the worst of it, faring better than the country as a whole. Intensity of Impact from Tough Economic Times Impact on me = 68 Impact on Mexico Impact on Mexico = 87 Impact on Me 1 2 3 4 5 6 7 8 9 10 Haven’t Have impacted impacted me at all me a great deal No Impact Great Impact % How would you rate the impact of the recession on your country? 21
- 22. A CLOSER LOOK AT MEXICO 22
- 23. THE RECESSION’S IMPACT ON MEXICO VS. OTHER COUNTRIES 23
- 24. Many think Mexico has suffered more from the recession than other countries in the region ... Impact of Recession on Mexico vs. Other Latin American Countries 70 60 50 50 45 40 30 20 10 5 0 My country has been My country has been My country has been LESS MORE affected than other affected ABOUT THE SAME affected than other Latin Latin American countries as other Latin American countries American countries % Thinking about the effect of the global economic downturn on your country, do you think your country has been affected more, less, or about the same compared to other Latin American countries? 24
- 25. ... and most feel Mexico has suffered more compared with wealthier countries. Impact of Recession on Mexico vs. Richer Countries 80 73 70 60 50 40 30 23 20 10 4 0 My country has been My country has been My country has been LESS MORE affected than affected ABOUT THE SAME affected than richer countries as richer countries richer countries % Thinking about the effect of the global economic downturn on your country, do you think your country has been affected 25 more, less, or about the same compared to richer countries?
- 26. THE RECESSION’S IMPACT ON LIFESTYLE 26
- 27. Mexicans consider ivory-tower politicians, corruption, class inequalities and crime as the primary social impacts of the recession. % who agree Politicians in my country are out of touch with how the average person is being affected by the 91 global economic downturn Government corruption in my country is as bad as it has ever been 88 My social class is being dealt an unfair blow because of this global economic downturn 88 I worry that the global economic downturn is widening the economic gap between the rich 85 and the poor in my country I’m worried that crime in my neighborhood will increase as people fall on hard times 83 I have started to notice that the values in my country have changed a bit as a result of the 75 global economic downturn The economic crisis has brought me closer to my friends and family 45 The economic crisis has distanced me from my friends and family 39 % How much do you agree or disagree with each of the following statements? 27
- 28. Behavior-wise, people are going out less and are retrenching to their homes ... Changes in Social Behavior as a Result of the Economic Downturn 2 Going to concerts/theatre 15 83 4 Going out to the movies 25 71 2 Going out to clubs, bars 18 80 2 Going out to eat 30 68 3 Going out shopping 26 71 3 Going out to parties/events 37 More 60 Same 59 Less Spending time at home 26 14 % Some people have told us that recently they have made some changes in how they are spending their time. Looking at the list of activities below, are you doing each more often, less often, or about the same amount as you did before the global economic downturn? 28
- 29. ... especially women. % Doing Activity LESS by Gender 88 Going to concerts/theatre 79 76 Going out to the movies 65 87 Going out to clubs, bars 72 75 Going out to eat 60 81 Going out shopping 60 66 Going out to parties/events Women 53 Men % Some people have told us that recently they have made some changes in how they are spending their time. Looking at the list of activities below, are you doing each more often, less often, or about the same amount as you did before the global economic downturn? 29
- 30. As one might expect, people are spending more time at home primarily to cut back on spending. Why People Are Spending MORE Time at Home To cut back on spending 86 I want to spend more time with my family 29 There seems to be less going on (parties, concerts, etc.) 22 Because most of my friends are 16 I improved my home entertainment/bought new items for home entertainment 3 Because of crime in my neighborhood 20 % You mentioned that you have been spending more time at home recently. What are the reasons you have been spending more time at home? 30
- 31. Crime is a significant driver of anxiety ... How concerned are you about crime in your neighborhood? 60 81 50 40 41 40 30 19 20 16 10 3 0 Very Somewhat Not very Not at all concerned concerned concerned concerned % Now, we’d like to talk to you about crime in your neighborhood. How concerned are you about crime in your neighborhood? 31
- 32. ... and it appears to be tied to the downturn, as anxiety related to crime has risen for many ... How has your concern about crime changed over the past year? 80 70 60 52 50 43 40 30 20 10 5 0 Increased Stayed the Same Decreased % Thinking about the past year, has your concern about crime in your neighborhood increased, decreased, or stayed the same? 32
- 33. ... impacting the daily lives of about half of Mexicans, especially women. Has your routine changed due to concerns about crime? 80 70 Women Men 60 56 54 50 46 44 40 30 20 10 0 Yes No % Have you changed your routine at all due to your concern about crime in your neighborhood? 33
- 34. Those who have changed their routine have adopted coping mechanisms impacting various areas of their lives, from showing less bling to going out less to shopping in different places. Has your routine changed due to concerns about crime? Not wearing certain pieces of clothing or 72 accessories so I don’t attract attention 73 74 Going out less often than I used to 54 Not going out at night 66 56 Choosing to shop in different areas/stores 51 64 Buying fewer luxury items 53 53 Making sure that when I am out, I am not alone 57 39 Choosing different methods of transportation 33 57 Women Entertaining myself and friends at home so I 18 Men don’t have to go out as much 13 % Among those who have changed their routine due to concerns about crime And how or what have you changed? 34
- 35. MEDIA AND THE RECESSION 35
- 36. As in most markets, people understand the downturn as much as it affects them but don’t possess an in-depth understanding. Knowledge of the Global Economic Downturn 60 50 50 43 40 30 20 10 6 1 0 I know a lot I know a fair I’ve heard of it, I’ve never about it amount about it but that’s about it heard of it % How much would you say you know about the global economic downturn? 36
- 37. Mexicans get their news through several sources, primarily TV and the Web ... % of people who use source for news at least once a day 100 90 83 80 76 70 60 57 50 47 40 30 20 10 0 TV Online Radio Newspaper % About how often, if at all, do you get your current news and information from each of the following? 37
- 38. ... which have been a source of information about the downturn. % of people who saw news about the downturn through their usual news and information sources 100 90 90 Women 80 82 Men 70 60 50 40 30 20 18 10 10 0 Yes No % Have you watched/read/heard reports about the global economic downturn from your usual news and information sources? 38
- 39. Most Mexicans feel the media has covered the downturn in the right proportion ... Has the media coverage of the downturn been ...? 80 70 60 54 50 40 30 20 13 15 10 0 Too Little Right Amount Too Much % And do you think the media has been giving reports about the global economic downturn too much, too little, or just enough coverage? 39
- 40. ... although a majority are unaware that LATAM is expected to enter a recession this year. Awareness of reports that Latin America will enter a recession in 2010 80 70 60 60 50 40 40 30 20 10 0 Yes No % Are you aware of the recent reports that Latin America will enter a recession in 2010? 40
- 41. SHOPPING BEHAVIOR AND THE RECESSION 41
- 42. In the past year, most people have changed their behavior in response to the global downturn—though these steps are more passive than active ... Actions taken as a result of the global downturn Paying closer attention to prices while I’m shopping 78 More actively looking for items on sale 77 Buying only when I am close to running out of something 72 Doing more comparison shopping to make 71 sure I get the best price Shopping more at discount or less expensive stores 62 Switching to lower priced brands 51 Buying more store brands/private label brands 44 Buying smaller amounts of items, more often 22 Using more coupons 19 Buying more in bulk 6 I haven’t changed my spending habits as a result of the recession 5 % Now, we would like to talk to you about your shopping over the past year. Please take a moment and think about how your spending habits have or have not changed over the past year when it comes to what you buy for your household (i.e., groceries, supplies, etc.). Which of the following, if any, have you begun to do as a result of the global economic downturn? 42
- 43. ... and defensive recessionary behavior seems yet to have gripped many Mexicans. % who agree strongly I have started to cut back on things I don’t need 55 I worry that because of the global economic downturn I won’t be able to keep up the lifestyle I am used to 43 I worry that because of the global economic downturn I won’t be able to attain the lifestyle I want 37 I haven’t personally felt the effects of the recession but have modified my spending habits just in case 16 I have noticed my friends have cut back in their spending habits 12 The recession hasn’t really changed what I do in my everyday life 11 % How much do you agree or disagree with each of the following statements? 43
- 44. LOOKING TO THE FUTURE: THE NEXT GENERATION 44
- 45. And while many Mexicans are anxious today, even more are anxious about the world their children and their children’s children will inherit ... % of people anxious about themselves vs. anxious about the future for their children/grandchildren 100 90 88 80 78 70 60 50 48 40 30 21 20 10 0 Anxious about Anxious about Very Anxious Very Anxious about themselves their children/ about themselves their children/ grandchildren grandchildren % Among those who have children Given everything that is going on in the world, the country, and your family’s life, how nervous or anxious would you say you are about the world your child(ren) or grandchildren will inherit? 45
- 46. ... which tends to manifest in financial concerns. % agreeing strongly or somewhat I worry about the effect this economy will have on the ability of my child(ren) to find a good job 90 I worry about my ability to afford the type of education 86 I’d like for my child(ren) I worry about my retirement funds and that I may 79 someday have to rely on my child(ren) for help This is a good lesson for my child(ren) about living 64 within your means I’ve lived through recessions before, and so did my parents—my child(ren) will be just fine 45 The schools are doing a good job of teaching my 31 child(ren) about the recession % Among those who have children How much do you agree or disagree with each of the following statements? 46
- 47. BRAND OPPORTUNITIES 47
- 48. BRAND OPPORTUNITIES Mexican brands have several opportunities to connect with anxious consumers: Speaking in a value voice. This can comfort people, with the brand acting as a singular source of fairness and empathy. Linking with symbols of stability and permanence. This can help brands connect with consumers who are struggling with instability, disappointment and confusion. Example: An HSBC Mexico spot was developed to increase a perception of solidity, exploring the simple idea that union and solidarity are the best way to confront uncertainty and threat. 48
- 49. BRAND OPPORTUNITIES (cont’d.) Mexican brands have several opportunities to connect with anxious consumers (cont’d.): Helping to restore a sense of control for the consumer. Example: A Ford Focus commercial dramatizes a test drive as a getaway chase. With consumers anxious about their helplessness in an increasingly violent and hostile environment, this spot empowers them by suspending the perception that they’re at the mercy of an “oppressive” world. With the Focus they can escape it and take control. 49
- 50. BRAND OPPORTUNITIES (cont’d.) Family togetherness is still high valued, as it’s one of the most important symbols of stability. Dramatize the house as a haven from a hostile and threatening world: A Telmex “triple play” campaign shows a modern middle-class family with a democratic dynamic among its members and a dog who symbolizes stability. La Lechera’s strategy focuses on strengthening family bonds and sweetening relationships between household members. A promotion from the chocolate brand Abuelita empathized with the need to connect, giving people a chance to win tickets that would allow expatriated family members to be reunited with their families in Mexico. 50
- 51. THANK YOU Mark Truss Alexandra Suarez Ann M. Mack Director of Brand Intelligence Market Research Director Director of Trendspotting JWT Worldwide JWT Latin America JWT Worldwide [email protected] [email protected] [email protected] www.AnxietyIndex.com (c) 2010 J. Walter Thompson Company. All Rights Reserved.