TAIPEI: Consumers in Taiwan are willing to spend money on branded products again as confidence in the local economy improves, figures from Synovate have shown.

According to a new report from the research agency, just 10% of shoppers are buying cheaper alternatives such as private label goods rather than brands. When the agency asked the same question last year, 23% were cutting costs in this way.

Consumers remain cautious over spending, with almost half (44%) saying they regularly compare prices of goods when out shopping.

But a clear majority (77%) said they were still able to "find a way to afford" consumer goods that make them "feel good".

Worries over the local economy have weighed on Taiwanese consumer sentiment recently, though 67% of polled respondents told Synovate that they think economic conditions will improve in the near future.

When asked what they were concerned about for the future, consumers cited losing income through unemployment and not having enough money in later life.

"Most consumers predict an improvement in the current economic situation over the next year, but at the same time are under no illusion it's necessarily going to happen overnight," the report added.

"Consumer attitudes and opinions towards Taiwan's economy in 2011 are looking up, albeit tentatively."

Data sourced from Synovate; additional content by Warc staff