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Evaluating_Shopping_Behavior_During_Ramadan.pptx
1.
Evaluating Ramadan Shopping Behaviour A Borderless
Access Research Report March 2022 KSA, UAE & Indonesia
2.
© 2022 Borderless
Access 2 Table of Content Research Background & Objectives Pages 3-4 Research Summary Page 5 Introducing Chatbot Enabled Research on WhatsApp Pages 6-7 Research Details Pages 8-9 Understanding Purchase Behavior During Ramadan Pages 10-14 Evaluating Purchase Impact on Categories During Ramadan Pages 15-21 Activities and Media Consumption Pages 22-25
3.
© 2022 Borderless
Access 3 Research Background Ramadan is a holy and festive month in the Islamic calendar where the community connects, prays, and exchanges gifts with friends and family There is a significant observance in an increase of shopping among people on buying luxury goods or products for gifting during this time than normal day to day life It is therefore important for brands to understand the changing mindset and the shopping behavior of the consumers on their needs, preferences, etc. during this festive celebration Borderless Access conducted a survey on the WhatsApp Chatbot platform among about 500 consumers across KSA, UAE, and Indonesia to understand their changing shopping behavior during Ramadan 01 02 03 04
4.
© 2022 Borderless
Access 4 Research Objectives Identify the key triggers of purchase and change in shopping behavior during Ramadan Understanding key categories that are purchased during Ramadan Understanding the patterns of media usage by consumers during Ramadan CATEGORY IMPACT MEDIA USAGE SHOPPING BEHAVIOUR
5.
© 2022 Borderless
Access 5 Decoding the change in Consumer Behavior during Ramadan PURCHASE TRIGGERS Gifting needs and a festive atmosphere act as key triggers for purchase during Ramadan, discounts however amplify it and are great for attracting spenders to brands and categories. With things coming to normalcy and increased spending power after 2 years of the pandemic, consumers might spend more on higher ticket items like jewelry, automotive, etc. during this Ramadan. CATEGORIES PURCHASED Consumers purchase mostly lower ticket size products like apparel and Packaged Foods during Ramadan and more so in Indonesia. SHOPPING CHANNELS In Indonesia, shopping during Ramadan is primarily driven by e-commerce, while in KSA it is a mix of online and brick & mortar and in UAE it is predominantly brick & mortar. A clear demonstration of how the retail and e-retail setup exists in each market. SPENDING BEHAVIOR The volume of purchase for low ticket products like packaged foods and apparel is higher while the value is more on higher ticket products like jewelry, electronics, and home appliances.
6.
Brands are increasingly
adopting humanistic traits and consumers would like the brands to be more responsive… Communication from brands was one way, brands dictated the terms and the consumer had very little say in the relationship Brands are becoming interactive with a purpose-enabled humanised approach, evoking emotional connections with consumers Two-way communications start as Consumers began to voice their opinions, brands start to listen and hear what consumers are saying Brand Bully Brand Acquaintance Brand Friend Mobile phone | Internet revolution Smartphone | Social Media | IOT © 2022 Borderless Access 6 Understanding the new age revolution
7.
© 2022 Borderless
Access 7 Virtual interviewer, conversational surveys inform the what and why of a brand’s true purpose 7 WhatsApp is the most active messenger app across KSA (80.5%), UAE (80.2%), and Indonesia(87%) of internet users, enabling access to the majority of consumers Platform approved, ready now Borderless Access Panellists KSA +225,000 I UAE +200,000 I Indonesia +320,000
8.
Piloting WhatsApp chatbot
as a platform in KSA, UAE, and Indonesia to capture consumer shopping habits during Ramadan © 2022 Borderless Access 8 Using the most popular Chat platform as a Survey Tool Method Uses Sample Achieved Markets Sample Profile Chatbot “virtual interviewer” via WhatsApp messenger Qualitative-Quantitative approach: 14 close ended questions 130+ photos 493 responses received in 4 days (15th – 19th Mar’2022) KSA (n=179), UAE (n= 170), Indonesia (n=144) 18+ years, Male & Females, SEC A, Local, Expat Arab, Expat Asian, Expat Westerner
9.
9 Consumer Demographics Profile ©
2022 Borderless Access . The study includes consumers from regions of KSA, UAE, and Indonesia, with a total sample size of 493. This includes men and women, aged 18 years & above. Base 493 Demographics Proportions 68% 12% 15% 25% 10% 57% 5% 5% KSA UAE Local Expat Arab Expat Asian Expat Westerner Range (in AED) % More than 8000 - 20000 44% More than 20000 56% Range (in SAR) % More than 8000 - 20000 50% More than 20000 50% Range (in IDR) % More than 20M – 50M 72% More than 50M 28% Monthly Household Income UAE KSA INDONESIA Nationality Nationality considered only for KSA and UAE Base 349 Base 493 KSA 179 Gender Male 54% Female 47% Age 18 - 35 years 62% 36 - 45 years 30% 46 & Above 8% UAE 170 Gender Male 53% Female 47% Age 18 - 35 years 55% 36 - 45 years 39% 46 & Above 6% Indonesia 144 Gender Male 50% Female 50% Age 18 - 35 years 69% 36 - 45 years 26% 46 & Above 9%
10.
UNDERSTANDING PURCHASE BEHAVIOUR DURING RAMADAN 01
11.
© 2022 Borderless
Access 11 Motivators for purchase 65% 54% 47% 39% 30% 23% 16% 62% 40% 56% 38% 30% 18% 16% 56% 47% 54% 54% 25% 8% 13% Discounts, promotions and offers Personal needs Gifting for family and friends Festivity Emotions related to the festival or culture Advertisements Current trends KSA UAE INODONESIA Discounts, promotional offers amplify the purchase of more products during Ramadan followed by gifting and personal needs in KSA and UAE. Q. What motivates you to buy products during Ramadan vs other times? Base 493 In Indonesia, a significant chunk of consumers buy more products during Ramadan because of the festivity apart from the discounts and gifting needs
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Access 12 The year of recovery for Ramadan shopping There might be a considerable surge in the purchase of high-value products in Indonesia during this year’s Ramadan vs. last year, as we are going back to normalcy after 2 years of the pandemic Q. Which of the following have you purchased last Ramadan? Q. What all do you plan to buy during this year’s Ramadan? Base 493 KSA UAE INDONESIA 70% 53% 45% 60% 49% 46% 49% 27% 11% 6% 67% 54% 43% 61% 44% 46% 41% 38% 15% 6% 71% 48% 67% 48% 52% 38% 26% 23% 8% 3% 65% 44% 67% 50% 44% 42% 33% 33% 17% 8% Packaged food items Personal care Apparels Home Decor Accessories Home Appliances Electronics Jewellery Automobiles Real Estate 75% 67% 53% 54% 47% 57% 45% 26% 13% 7% 66% 56% 54% 49% 49% 51% 47% 27% 17% 8% Last Year Ramadan Purchase Current year Ramadan Purchase Automotive industry in KSA and UAE might see a significant increase in demand and consumers in UAE might purchase more jewelry during this period vs. last year -> both of which can be attributed to the increased spending power post 2 years of the pandemic
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Access 13 Gifting during Ramadan 58% 34% 34% 29% 33% 28% 26% 21% 62% 21% 29% 21% 36% 21% 20% 15% 60% 16% 51% 9% 28% 9% 11% 13% Packaged food items Personal care Apparels Home Decor Accessories Home Appliances Electronics Jewellery KSA UAE Indonesia Packaged food items like chocolates dry fruits, sweets, etc. are highly preferred for gifting during Ramadan, while a significant chunk of consumers in Indonesia prefer apparel for gifting as it connotes higher value. Q. What all do you usually buy for gifting during Ramadan? Automobiles and Real Estate are not considered for gifting purpose Base 493
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Access 14 Across all categories, items are being purchased during Ramadan which signifies that every brand needs to be present in the consumer’s mind for it to be picked among the clutter Q. Can you please upload a picture of the category you purchased for this Ramadan? * All the pictures have been shared on WhatsApp Chatbot Survey
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02 EVALUATING PURCHASE IMPACT ON
CATEGORIES DURING RAMADAN
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Access 16 Shopping Categories Home Appliances like Smart TVs, Washing Machine, Fridge, etc. Apparels Electronics like laptop, mobile phones, Headphones etc. Accessories like Watches, Eyewear, Shoes, belts, Bags, Perfumes etc. Gold/ Silver/ Diamond/ Platinum Jewellery Packaged Food Items like Chocolates, Dry fruits, Confectionaries, Sweets, etc. Personal Care products like Body Care, Skin Care, Makeup etc. Home Décor Products Smart TVs Washing Machine Fridge Laptop Mobile phones Headphones Watches Eyewear Shoes Belts Bags Perfumes Gold Silver Diamond Platinum Chocolates Dry fruits Confectionaries Sweets Body Care Skin Care Makeup Shirts/ Tops Bottom Wear
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Access 17 Change in the Purchase Behavior.. (1/2) 56% 48% 72% 28% 34% 16% 16% 18% 12% KSA UAE INDONESIA Apparels 37% 27% 52% 42% 46% 26% 20% 26% 21% KSA UAE INDONESIA Electronics 40% 44% 44% 41% 35% 43% 19% 21% 12% KSA UAE INDONESIA Accessories Q. How does your behaviour change in purchasing the below during Ramadan? Base 493 Packaged Foods followed by apparel are being purchased the most across all the 3 countries during Ramadan and the purchase incidence of both the categories is considerably higher in Indonesia 33% 25% 35% 32% 36% 21% 35% 39% 44% KSA UAE INDONESIA Home Appliances I buy less/don’t buy during Ramadan There is no change in my purchase behavior I buy this only/more during Ramadan
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38% 36% 57% 34% 43% 24% 28% 21%
19% KSA UAE INDONESIA Jewellery 65% 70% 77% 22% 22% 20% 13% 8% 3% KSA UAE INDONESIA Packaged Food 45% 42% 51% 40% 48% 35% 15% 10% 14% KSA UAE INDONESIA Personal Care 47% 48% 37% 37% 41% 21% 16% 11% 42% KSA UAE INDONESIA Home Decor © 2022 Borderless Access 18 Change in the Purchase Behavior.. (2/2) In KSA & UAE, consumers like to redo their homes with new furnishing during Ramadan. Q. How does your behaviour change in purchasing the below during Ramadan? Base 493 I buy less/don’t buy during Ramadan There is no change in my purchase behavior I buy this only/more during Ramadan
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2nd Preference 1st Preference 2nd Preference 1st Preference 2nd Preference 1st Preference Home Appliances Apparels Accessories Electronics Online shopping (49%) Shopping
malls (40%) Specialty Stores (50%) Shopping malls (38%) Shopping malls (65%) Branded Showrooms (31%) Online shopping (58%) Shopping malls (53%) Online shopping (81%) Shopping malls (57%) Shopping malls (72%) Online shopping (56%) Online shopping (63%) Shopping malls (42%) Online shopping (70%) Branded Showrooms (20%) Branded Showrooms (42%) Online shopping (64%) Shopping malls (60%) Online shopping (56%) Shopping malls (44%) Shopping malls (64%) Online shopping (57%) Shopping malls (50%) Purchase in KSA and Indonesia is mostly online driven for apparel, Electronics, and Accessories, whereas in UAE consumers still prefer brick & mortar for the purchase of the said categories. It reflects that Malls are a part of UAE consumers’ purchase journey. Q. From where did you purchase the below during Ramadan? Base 493 © 2022 Borderless Access 19 Place of Purchase.. (1/2) KSA UAE INDONESIA
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Access 20 Place of Purchase .. (2/2) 2nd Preference 1st Preference 2nd Preference 1st Preference 2nd Preference 1st Preference Personal Care Packaged Food Home Decor Shopping malls (69%) Online Shopping (39%) Online shopping (67%) Shopping malls (67%) Online shopping (63%) Shopping malls (57%) Online shopping (70%) Shopping malls (60%) Shopping malls (67%) Online shopping (46%) Shopping malls (50%) Branded Showrooms (44%) Online shopping (80%) Shopping malls (60%) Shopping malls (69%) Online shopping (45%) Shopping malls (83%) Online Shopping (42%) Purchase in Indonesia is completely online driven for Packaged Food, Personal Care, and Home Decor products, wherein KSA and UAE consumers still prefer buying from brick and mortar for Packaged Food and Home Décor products during Ramadan Q. From where did you purchase the below during Ramadan? Base 493 Jewellery Shopping malls (32%) Branded Showrooms (36%) Specialty Stores (44%) Online shopping (33%) Shopping malls (53%) Branded Showrooms (43%) KSA UAE INDONESIA
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03 ACTIVITIES & MEDIA CONSUMPTION
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Access 22 Activities done on Smartphone Consumers in KSA and UAE spend most of their time, chatting and browsing on social media platforms like Facebook, Instagram etc., while in Indonesia, consumers mostly do shopping from e-commerce apps followed by listening to music on their smartphone Q. Which of the below activities do you do on your smartphone during Ramadan? Base 493 21% 30% 39% 41% 46% 46% 50% 53% 57% 58% 63% Watch live sports Listen to music Access news Play games Watch videos/ TV shows on OTT platforms Payments Take photos/videos Internet Search Shopping Use Social Media Apps Chatting over SMS, WhatsApp KSA UAE INDONESIA 32% 36% 47% 49% 50% 55% 57% 59% 66% 67% 70% Listen to music Watch live sports Payments Play games Access news Watch videos/ TV shows on OTT platforms Shopping Take photos/videos Internet Search Chatting over SMS, WhatsApp Use Social Media Apps 26% 39% 52% 52% 55% 61% 65% 68% 68% 74% 77% Watch live sports Access news Watch videos/ TV shows on OTT platforms Play games Internet Search Payments Use Social Media Apps Chatting over SMS, WhatsApp Take photos/videos Listen to music Shopping
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Access 23 Media Channels Followed 25% 29% 33% 33% 37% 42% 59% OOH Ads Recommended by a professional Print media OTT platforms Television Ads Online Websites Digital media Q. Which of the following media channels do you follow to buy luxury products during Ramadan? Digital media and online websites are the most widely followed media channels amongst consumers in all the three markets Base 493 32% 37% 38% 41% 45% 58% 67% Print media OOH Ads OTT platforms Recommended by a professional Television Ads Online Websites Digital media 32% 32% 42% 48% 58% 74% 77% OOH Ads Recommended by a professional OTT platforms Print media Television Ads Online Websites Digital media KSA UAE INDONESIA
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Access 24 Social Media Channels Usage 10% 32% 36% 80% 85% 85% 85% 86% Tumblr LinkedIn Pinterest Facebook YouTube Instagram Twitter WhatsApp Q. Which all social media channels do you follow and use? WhatsApp, Facebook, YouTube & Instagram are the most commonly used social media platforms in KSA & UAE while in Indonesia, Facebook & Instagram are being used the most Base 493 7% 26% 43% 47% 72% 78% 82% 87% Tumblr Pinterest LinkedIn Twitter Instagram YouTube Facebook WhatsApp 16% 23% 32% 42% 52% 81% 90% 90% Tumblr WhatsApp Pinterest LinkedIn Twitter YouTube Facebook Instagram KSA UAE INDONESIA
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