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Description

Description

Mintel's re-forecasting puts markets in realistic light

In less than nine months, the UK has changed from booming, overheated economy to an economy in crisis. In a fast-developing environment, up-to-date market and consumer data is more critical than ever.

It takes time for changes in macro-economic variables to have an impact on consumer spending. But it is now clear that consumers’ expectations, attitudes and beliefs have changed dramatically in the past six months. As a result, Mintel’s market size estimates and forecasts based on different consumer expectations warrant revision. For the first time in its near-40 years of delivering market and consumer insights, Mintel has conducted an exhaustive mid-cycle re-evaluation of consumer market forecasts published in 2007 & 2008.

The macro-economic changes

Since the bankruptcy of Lehman Brothers, crisis upon crisis has hit the UK financial services sector with several key players having to be rescued from the threat of insolvency. The consequences for the UK economy have been dramatic as the government and markets have reacted to unfolding events. Some of the falls include:

  • interest rates from 5% to 0.5% (Oct. ’08 to Mar ‘09)

  • the sterling/dollar exchange rate from $2 to the pound to $1.45 (Jun. ‘08 to Feb ’09)

  • the sterling/euro exchange rate from 1.25 euros to the pound to a low of 1.01 euros (most of ’08 to Jan. ’09)

  • the retail price index (RPI) from 5% to 0.1% (Sept. ’08 to Jan ’09)

  • the consumer price index (CPI) from over 5% to 3% (Sept. ’08 to Jan ’09 – less dramatic than RPI primarily as it excludes mortgage interest payments and housing depreciation).

The significance of these changes

Mintel has tracked UK consumer expenditure for almost 40 years, including the recessions of the seventies, 1980-81 and 1991-92.

Mintel market size estimates combine historic data trends with the most current consumer data, published data and trade insight. Using a range of economic variables, primarily consumer-related, such as consumer expenditure, personal disposable income and the consumer price index, we have re-estimated and re-forecast the market data in more than 300 of our UK reports.

This work will enable us to understand better which sectors are suffering most in the current economic crisis. How are consumers likely to spend their incomes in the coming years? Which sectors will suffer and benefit most? How should suppliers react in the short-, medium- and long-term?

The worst impact of recession is skewed towards certain sectors where big ticket, discretionary purchases are the norm: automotive; any sector where there is a close correlation with house purchasing (eg brown & white goods, floor coverings), technology and travel. But within each sector, there are winners and losers. Are car-buyers switching from new to used cars? Is the after-sales market benefiting as car owners delay purchases? When will an upturn take place?

Are consumers trading up to better quality products, trading down, or trading over? Each segment of each sector has to be analysed separately and in comparison with others.

Presentation of data

Mintel’s revised data is presented in an easy-to-use manner:

  • relevant commentary about the sector, with discussion of pertinent changes in the sector and an overall assessment of the current state of the market

  • a chart of the previous estimates and forecasts for a sector alongside the revised data

  • tables for the period 2002-2012 or 2003-2013, incorporating

  • previous and revised estimates & forecasts at current prices

  • the absolute value of the change to the market forecast

  • index numbers to show percentage changes

  • In most cases, we have added a further paragraph bringing to the attention of users of a scenario based on a more pessimistic forecast of economic circumstances in 2009. This is based on February ONS (Office of National Statistics) data. This should be seen as indicative of the impact of further economic decline: a worse case (but not worst case) scenario.

What next?

Aggregated and revised data, including forecasts to 2014 will be published in British Lifestyles 2009: consumers in crisis at the beginning of April 2009.

A further review of the changes in the markets surveyed by Mintel, consumers’ expenditure plans, and economic forecasts will take place July 2009 and, if necessary, a further set of revised forecasts with commentary will be published in July 2009.

What's included

What's included

Table of contents

Table of contents

  1. Introduction

    • Mintel’s re-forecasting puts markets in realistic light
      • The macro-economic changes
        • The significance of these changes
          • Presentation of data
            • What next?
              • Methodology
                • Differences
                • Car Finance

                    • Figure 1: Forecast of the value of the car finance market (car dealer sector), 2001-12
                    • Figure 2: Forecast of the value of the car finance market (car dealer sector), 2001-12
                    • Figure 3: Forecast of the volume of the car finance market (car dealer sector), 2001-12
                    • Figure 4: Forecast of the volume of the car finance market (car dealer sector), 2001-12
                    • Figure 5: Forecast of the value of the car finance market (direct lending secured and unsecured sector), 2001-12
                    • Figure 6: Forecast of the value of the car finance market (direct lending secured and unsecured sector), 2001-12
                    • Figure 7: Forecast of the volume of the car finance market (direct lending secured and unsecured sector), 2001-12
                    • Figure 8: Forecast of the volume of the car finance market (direct lending secured and unsecured sector), 2001-12
                  • Factors used in the forecast
                  • Credit and Debit Cards

                      • Figure 9: Forecast of the volume of credit card purchases, 2003-13
                      • Figure 10: Forecast of the volume of credit card purchases, 2003-13
                      • Figure 11: Forecast of the value of credit card purchases, 2003-13
                      • Figure 12: Forecast of the value of credit card purchases, 2003-13
                      • Figure 13: Forecast of the volume of debit card purchases, 2003-13
                      • Figure 14: Forecast of the volume of debit card purchases, 2003-13
                      • Figure 15: Forecast of the value of debit card purchases, 2003-13
                      • Figure 16: Forecast of the value of debit card purchases, 2003-13
                    • Factors used in the forecast
                    • Mortgages: Weathering the Credit Storm

                          • Figure 17: Forecast of total gross advances, 2003-12
                          • Figure 18: Forecast of total gross advances, 2003-12
                          • Figure 19: Forecast of gross advances for house purchase, 2003-12
                          • Figure 20: Forecast of gross advances for house purchase, 2003-12
                          • Figure 21: Forecast of gross advances for remortgages, 2003-12
                          • Figure 22: Forecast of gross advances for remortgages, 2003-12
                          • Figure 23: Forecast of other gross advances, 2003-12
                          • Figure 24: Forecast of other gross advances, 2003-12
                        • Factors used in the forecast
                        • Packaged, Premium and Current Accounts

                              • Figure 25: Forecast of the number of current accounts in the UK, 2003-13
                              • Figure 26: Forecast of the number of current accounts in the UK, 2003-13
                            • Factors used in the forecast
                            • Small Business Banking

                                  • Figure 27: Forecast of the number of business bank accounts, (current accounts), 2003-13
                                  • Figure 28: Forecast of the number of business bank accounts, (current accounts), 2003-13
                                  • Figure 29: Forecast of the number of business bank accounts, (deposit accounts), 2003-13
                                  • Figure 30: Forecast of the number of business bank accounts, (deposit accounts), 2003-13
                                • Factors used in the forecast
                                • Store Cards

                                    • Figure 31: Forecast of the number of store cards in issue, 2001-11
                                    • Figure 32: Forecast of the number of store cards in issue, 2001-11
                                    • Figure 33: Forecast of the volume of store cards transcations, 2001-11
                                    • Figure 34: Forecast of the volume of store cards transcations, 2001-11
                                    • Figure 35: Forecast of the value of store cards transcations, 2001-11
                                    • Figure 36: Forecast of the value of store cards transcations, 2001-11
                                  • Factors used in the forecast
                                  • Travel Money

                                        • Figure 37: Annual spending abroad by UK residents, at current prices, 2003-13
                                        • Figure 38: Annual spending abroad by UK residents, at current prices, 2003-13
                                      • Factors used in the forecast

                                      About the report

                                      This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                      • The Consumer

                                        What They Want. Why They Want It.

                                      • The Competitors

                                        Who’s Winning. How To Stay Ahead.

                                      • The Market

                                        Size, Segments, Shares And Forecasts: How It All Adds Up.

                                      • The Innovations

                                        New Ideas. New Products. New Potential.

                                      • The Opportunities

                                        Where The White Space Is. How To Make It Yours.

                                      • The Trends

                                        What’s Shaping Demand – Today And Tomorrow.

                                      Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                      Trusted by companies. Big and small.

                                      • bell
                                      • boots
                                      • google
                                      • samsung
                                      • allianz
                                      • kelloggs
                                      • walgreens
                                      • redbull
                                      • unilever
                                      • Harvard
                                      • pinterest
                                      • new-york-time