Steve Rhode
Steve Rhode is the founder of Myvesta US in the United States and the Chairman of Myvesta UK in the United Kingdom.
Shopping May Be Fun But Their Are Consequences
It appears that American's are not the only ones struggling under the burden of consumer debt or using recreational shopping as a way to distract themselves.
According to a survey by ACNielsen, 36 percent of the population in Hong Kong and 30 percent of the population in the UAE, turn to shopping as a recreational activity. Consumer report that they shop at least once a week purely for entertainment and 84 percent report that they go shopping as something to do.
This type of shopping habit can only lead to large amount of unsecured consumer debt that will create a burden on consumers and potentially lead to slower economic growth and that's exactly what the UAE leaders are afraid of.
The Government said yesterday that a “combination of easy loans, in addition to advertising and media propaganda” had plunged consumers into “a quagmire of spending”.
This had led to what it described as “‘hidden poverty’, a situation where a certain segment of society seek to possess luxurious items at the expense of essential goods”.
In its weekly report, the Abu Dhabi Department of Planning and Economy (DPE) warned that, unless consumer spending was regulated, “Local economic institutions would ... be turned into importing rather exporting institutions for consumer goods and services”.
The nation’s “alarming consumption rate could, in the future, constitute a big hurdle in the face of any plans to transform the country from a consuming to producing nation.”
The report says that UAE consumers are so fond of shopping that they spend seven times more than consumers in the rest of the Arab world and are among the most active shoppers on the planet.
It will be very interesting to see how the UAE con control this growth and if they turn to an answer that limits consumer access to personal debt as a solution.
Government introduced solutions to the consumer debt building problem are a lot like trying to build a needed dam in a community, everyone knows it is a step that must be taken but nobody wants it in their backyard.
According to a survey by ACNielsen, 36 percent of the population in Hong Kong and 30 percent of the population in the UAE, turn to shopping as a recreational activity. Consumer report that they shop at least once a week purely for entertainment and 84 percent report that they go shopping as something to do.
This type of shopping habit can only lead to large amount of unsecured consumer debt that will create a burden on consumers and potentially lead to slower economic growth and that's exactly what the UAE leaders are afraid of.
The Government said yesterday that a “combination of easy loans, in addition to advertising and media propaganda” had plunged consumers into “a quagmire of spending”.
This had led to what it described as “‘hidden poverty’, a situation where a certain segment of society seek to possess luxurious items at the expense of essential goods”.
In its weekly report, the Abu Dhabi Department of Planning and Economy (DPE) warned that, unless consumer spending was regulated, “Local economic institutions would ... be turned into importing rather exporting institutions for consumer goods and services”.
The nation’s “alarming consumption rate could, in the future, constitute a big hurdle in the face of any plans to transform the country from a consuming to producing nation.”
The report says that UAE consumers are so fond of shopping that they spend seven times more than consumers in the rest of the Arab world and are among the most active shoppers on the planet.
It will be very interesting to see how the UAE con control this growth and if they turn to an answer that limits consumer access to personal debt as a solution.
Government introduced solutions to the consumer debt building problem are a lot like trying to build a needed dam in a community, everyone knows it is a step that must be taken but nobody wants it in their backyard.
