By Joyce Hooi

EVEN as the stock markets pick up, expect to see fewer designer labels on fellow passengers on the MRT in coming months, if the latest survey released yesterday by Omnicom Media Group (Asia Pacific) is anything to go by. Singaporeans ranked among the most thrifty in the region, with 45 per cent of respondents planning to be either 'a little more cautious' or 'a lot more cautious' with spending over the next six months, compared to the previous six months.

Within the region, only Thai consumers were more sombre in their shopping outlook, with 48 per cent of respondents expecting to be more cautious with spending.

The Chinese and Indian nationals, however, were the most freewheeling of the region. Forty-five per cent of respondents in China plan to 'spend more freely' over the next six months - the highest proportion in the region - while 39 per cent of Indian respondents plan to do the same.

In comparison, only 18 per cent of Singaporeans plan to spend more freely in coming months.

'Consumers across the seven countries are remarkably unified in their responses to the recession and the beginnings of recovery. Although a minority are ready to spend more freely, the majority of those we surveyed are not ready to let down their guard yet,' said Guy Hearn, director of Communications Insights, Asia Pacific.

'We call this a 'Whiplash Effect' - the extent of the recession took people by surprise and like a whiplash injury, it will have a lingering effect and take time to recover from.'

Even when consumers do hand their hard-earned cash over to retailers, most of them will be 'downtrading' - or switching to cheaper brands.

Malaysians, in particular, have been doing the most downtrading, with 60 per cent of respondents having downtraded in at least four categories.

Singaporeans have not been holding the purse strings as tightly, with 51 per cent of them downtrading in at least four categories.

Respondents from Hong Kong proved the least willing to give up their Marc Jacobs and Louis Vuitton, with only 33 per cent doing the same. From a regional perspective, the most commonly downtraded categories have been household provisions, personal care, groceries, everyday cosmetics and everyday fashion.

'The recession has forced consumers to be very rational in their outlook, and to examine closely the value they are getting from their brands.

'What is interesting is that most consumers tell us they are happy with these decisions - most have no plans to switch back to their pre-recession brands. They see it as a long-term change in behaviour,' said Mr Hearns.

The survey was carried out last month in conjunction with Pulse Group plc and surveyed 3,675 respondents aged 18-65 online across seven Asia-Pacific countries.

This article was first published in The Business Times.