RIYADH: Local markets and online shopping will surge during Ramadan due to the influx of consumers adapting their shopping habits during the holy period.
The purchasing power of the Moon Kingdom's customers reflects a unique combination of cultural traditions, religious observances, and economic factors.
In line with global consumer trends, people entering Ramadan prioritize comfort and the opportunity to make personalized choices.
food, agricultural products, groceries
At the end of the fast, families prepare a sumptuous “iftar” meal and share it with neighbors and those in need. This increase in consumption will significantly increase sales at grocery stores, markets, and restaurants.
TGM, a Singapore-based market research company, told Arab News that this year, 47% of spending during the month of Advent was spent on food and beverages, with classic dishes such as sambosa, sorba and kabsa, as well as maasi and kunafe gracing the table. He said he is doing so.
In 2023, spending on food and drinks in Saudi Arabia increased significantly during Ramadan, with 51 percent of consumers spending more on these categories.
As the world continues to favor digital currencies over traditional forms, mobile apps and online food ordering are growing in popularity, with many users feeling a reprieve from the standard approach to purchasing. TGM highlighted that while home cooking remains mainstream, the usage of digital apps has increased significantly.
Similarly, a new study from Checkout.com, a global payment solutions provider, shows that consumers in Saudi Arabia and the UAE plan to purchase a variety of products more frequently this Ramadan compared to the celebrations in 2023. Something has come to light in Arab News.
The most popular product category is expected to be groceries, with 60% of respondents saying they plan to buy groceries more often.
Meal delivery is expected to be the second most purchased group, with 50% of respondents saying they plan to allocate most of their budget to this service.
This increase in agricultural income is felt in all regions across the Kingdom, with small and medium-sized enterprises, local date sellers, and traditional Saudi coffee sellers witnessing an increase in sales demand.
Abdul Fattah Al Amri, a local merchant at Riyadh's seasonal date market, told Arab News that Ramadan is the most active period. A whole year. ”
Consumers are frequenting and using online retail sites to relieve both time and money pressures.
Mr. Abd Klara, Amazon Saudi Arabia Country Manager
Similarly, in the Turaif region, purchasing activity has increased since the end of Ramadan, and markets and commercial centers are becoming more vibrant as the month progresses.
The Saudi Press Agency noted that commercial activities have gradually started to pick up due to increased demand for basic food and supplies for the holy month.
e-commerce
Alongside traditional brick-and-mortar stores, online retail platforms also see a surge in activity during Ramadan, with consumers often preferring to shop from the comfort of their homes.
Despite not following a traditional browsing approach, online purchasing is widely preferred among consumers who seek the convenience of avoiding travel and the wide range of products available in digital stores, thereby making it easier to find the desired product. Search is now faster.
Amazon Saudi Arabia Country Manager Abd Khurara said customers are planning to entertain, cook and gift as the month of Ramadan begins, and with this shopping mindset instilled, consumers are turning to online retail sites. He added that he has become more frequent and dependent on online retail sites. It reduces both time and financial pressure.
Chara explained that surviving Ramadan and Eid means providing what customers need at each stage, from preparations a month before Ramadan begins to end-of-season celebrations.
The research conducted by Google further confirmed that digital shopping “continues to grow” in Saudi Arabia during the holy month, even in traditionally less online-savvy categories such as food and beauty.
Reflecting this idea, Checkout.com research outlines that digital retail will see a further surge during this period.
Consumers in Saudi Arabia and the UAE have noted a strong trend toward online purchases, with 95% of consumers surveyed in both countries saying they shop online during Ramadan, and 29% shopping online weekly or daily. Surveys show that shopping.
As the month progresses, nearly three-quarters of those surveyed, approximately 76%, plan to purchase products and services on digital markets more often or at the same rate during this holy month.
Meanwhile, 26% of those surveyed said they would buy products and services directly less frequently.
highlight
• Singapore-based market research firm TGM told Arab News that this year, 47% of spending during the month of Advent was earmarked for food and beverages, with staple foods gracing the table.
• In 2023, Saudis saw a significant increase in spending on food and drinks during Ramadan, with 51% of consumers spending more on these categories.
• Alongside traditional brick-and-mortar stores, online retail platforms also see a surge in activity during Ramadan, with consumers often preferring to shop from the comfort of their homes.
• Online purchasing is widely popular among consumers who seek the convenience of avoiding travel and the wide range of products available in digital stores.
Sameer Marei, GCC regional CEO of multinational logistics, courier and parcel delivery company Aramex, told Arab News that Ramadan is considered a peak season for e-commerce in “this part of the world.” He said he is doing so.
He pointed out that this is the result of various factors, including the preference of some people to receive goods without leaving home, avoiding traffic jams, and adapting to changes in working hours.
This increased demand comes with equal or higher expectations for service levels, Murray added.
He explained that with the increased accessibility of e-commerce and the convenience of online shopping, consumers tend to buy more and spend more money. This trend is likely to have led to increased competition and lower costs by making it easier to compare prices and product options.
Murray also highlighted the increasing demand for gifts that have the option of being shipped directly to the recipient, both domestically and internationally.
“Sales of all products increase during Ramadan, mainly due to promotions and discounts, but the top products are apparel, beauty, skin care and toys,” the CEO said.
He added: “Being the market leader in the delivery of e-commerce orders, whether for international or domestic shipping, basket sizes in terms of price and weight are larger than in normal off-peak seasons and consumers are “As this number increases, we can see that overseas shopping is increasing,” he added. They tend to buy based on promotions and deals from foreign e-tailers. ”
Fida Hijawi, communications manager at the Apparel Group, echoed Murray's conclusions, telling Arab News that there was a noticeable spike in consumer shopping during Ramadan in Saudi Arabia, with a significant shift towards online platforms. Told.
She said this period is characterized by an increase in purchases of clothing, gifts and household items as consumers prepare to celebrate the month with enthusiasm and generosity.
Hijawi reaffirmed the growing trend of consumers towards sales and promotions during this month, saying:
“It is essential for retailers to understand these dynamics and adapt their strategies accordingly to take advantage of seasonal opportunities and build lasting customer relationships.”
Beyond Ramadan
Expected consumption habits during Ramadan come on the back of stable consumption activity in Saudi Arabia, despite a decline in many other parts of the world.
Consulting firm AlixPartners in February analyzed changes in customer sentiment in Saudi Arabia and predicted that shopping habits in the region would remain largely unchanged in 2024, unlike in Europe, the Middle East and Africa, where sales are expected to decline by 37%. .
The report also reveals that while online shopping is widely accepted, customer personalization and loyalty are increasingly valued among Saudi shoppers, especially through personal interactions in physical stores. I made it.
