Online sales in UAE and Saudi Arabia to reach $2 billion as Ramadan promotions arrive

A market survey by RedSeer Consulting shows that amid the shift in consumer preference for online shopping, online sales during Ramadan in the UAE and Saudi Arabia are expected to reach $2 billion in 2021. Last year, due to the widespread spread of the epidemic, online sales during Ramadan in the UAE and Saudi Arabia jumped 80% to $1.5 billion.

According to foreign media reports, the advertising expenditure of the Middle East retail industry during the Ramadan promotion season accounts for at least 40% of the total annual advertising expenditure, which is enough to show the importance of Ramadan to the Middle East retail industry.

The survey shows that consumers in these two countries are most enthusiastic about shopping this year, with 40% of respondents saying they decided to shop during the Ramadan promotion season, whether online or offline. In the past two years, the proportion was 33% and 24%, respectively, which clearly shows that consumers are more enthusiastic about Ramadan promotions.

“Despite the impact of the pandemic, consumers are still showing extremely high interest,” said Sandeep Ganediwalla, an expert at RedSeer Consulting .

Although Ramadan has not yet arrived, retailers' promotions began last week. A previous Facebook study also showed that consumers will buy products before Ramadan.

In the UAE and Saudi Arabia, two major e-commerce markets in the Middle East, electronics and fashion products are the most popular among consumers. In the fashion field, clothing and footwear are among the most popular products, with as many as 48% of consumers paying attention to these products.

A senior marketing executive at Dabur in the UAE said that the demand for fast-moving consumer goods during Ramadan is also particularly high. This year's Ramadan has brought optimism to fast-moving consumer goods companies and consumers. In the past two quarters, Dabur has found that fast-moving consumer goods consumption has returned to pre-epidemic levels and expects this momentum to continue.

Ajay Antal, CEO of Dubai-based furniture and home products giant HomeBox, said the e-commerce industry is a promising area. Last year, HomeBox's e-commerce business was expected to grow 3.5 times compared to 2018 and 2019 in the run-up to and during Ramadan.

In terms of details, Ramadan promotions can be divided into three stages: before Ramadan, during Ramadan, and after Ramadan. Categories such as groceries are in the strongest demand before Ramadan because consumers need to prepare for Ramadan in advance. High demand for fashion categories occurs during Ramadan. Sellers can refer to this as appropriate and make adjustments to the promotion of Ramadan promotions to achieve the best results.

middle East