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Ramadan 2023~ Changing habits, evolving patters!

  1. © 2023 Redseer Consulting confidential and proprietary information Dubai. Bangalore. Delhi. Mumbai. Singapore. New York Solve. New Ramadan 2023 Changing habits, evolving patterns Market Perspective March 2023
  2. 2 © Redseer MENA and SEA, two Muslim majority regions are expected to see ~$150 Bn retail sales during Ramadan Note(s): 1. How enthusiastic are you to participate in Ramadan Shopping Event? (Excited+Happy) Source(s): Redseer Analysis Ramadan Shopping Excitement1 – Country Wise In % Internet Users Retail Ramadan Sales $ Bn, 2023F 83% 82% 76% Indonesia UAE KSA 70%+ will do get togethers during Ramadan Grocery & Fashion to be the most purchased categories 60%+ prefer online channels 44% 56% SEA MENA $150 Bn
  3. 3 © Redseer However, shopping excitement is predicted to be lower than last year Source(s): Redseer Analysis Overall Customer Behavior UAE KSA Ramadan excitement comparison with previous year1 “WhileI am looking forward to better product assortments, usually none of the brands that I like have great deals hence I am not very excited ” - Housewife, Asian Expat, UAE “My spending would be subdued this year; I'm not excited for the sales either as I am not planning to buy unessential products” - Working Male, Saudi Local, KSA Ramadan Shopping Excitement1 % Ramadan shoppers Note(s) :1. How enthusiastic are you to participate in Ramadan Shopping Event? (Includes Excited+Happy); Change in 2022 excitement as compared to 2023 excitement
  4. 4 © Redseer Despite macro environment, sectors such as Fashion, Food service and Travel will see surge in sales Sector UAE KSA Highlights Fashion • Festive/party events and new spring collections uplift fashion excitement Grocery • Varied excitement level for grocery across countries Food • High intent for outings and get togethers boosting excitement Home • Home purchases to see plunge in MENA countries Electronics • Non lucrative deals and offers in electronics will reduce excitement Travel • International travel sentiment stronger in MENA owing to high expat population Automotive • Stable growth is expected across countries Real Estate • A slight normalization expected compared to the peak demand in the previous Ramadan Current Consumer Excitement level Ramadan Shopping Excitementcompared to Last Year Increase in intent to buy compared to last year Source(s): Redseer Primary Research and Analysis
  5. 5 © Redseer Consumers are expected to exhibit significant shifts in their behavior Source(s): Redseer Analysis -50% Cooking expected to decline +33% 2022 2023 +44% Get togethers will see rise Gifting will become more common Intrinsic Needs during Ramadan1 %, UAE+KSA +14% Planned purchases will become prominent Implications Unlocking discovery opportunity will be key to drive sales Grocery purchases expect to witness decline Dining out, food delivery and Travel will see rise Revenue opportunity for q-commerce & gifting retailers Change compared to previous years Intrinsic Needs Note(s): 1. What are the needs you're addressing while purchasing products during Ramadan?
  6. 6 © Redseer They will be open to trying new products, which presents an opportune time for D2C/private label brands to gain a foothold in the market Inclination to Purchase from New Online Brands In % Ramadan shoppers, 2023 90% 79% 73% Indonesia KSA UAE Best time for D2C/private label brands to shine Top Motivators Fast Delivery Product Quality 1 2 Free Shipping 1 The impact of delivery speed on the purchase consideration is high Product Variety 2 Source(s): Redseer Primary Research and Analysis
  7. 7 © Redseer Additionally, discovery will be disrupted, with online search declining and an increase in popularity of community channels, brand apps and print media Source(s): Redseer Analysis Product Discovery Channels Preference In %, 2022-23, UAE+KSA Online search expected to slump Communitychannels will thrive Direct brand channel continues to be important Print witnessing renaissance 2022 2023 -23% KSA to see higher plunge thanUAE Considerable rise in KSA compared to UAE Equallyimportant in both KSA and UAE 2x jump in preference in both UAE and KSA 2022 2023 +5% 2022 2023 +27% Digital Media Reviews 2022 2023 +2% 2022 2023 +125% Online Search Brand/Retailer App Print Note(s) :1. From which channel do you get inspiration (discover) for your purchases on Ramadan? (KSA respondents)
  8. 8 © Redseer Consumer preference for social commerce is expected to be high while buying products online Ø 22% Electronics BPC Home Grocery Fashion 23% 27% 24% 20% 18% 1 in 4 consumers are open to purchasing products through social commerce Key Strategies to Leverage Social Commerce Descriptive Source(s): Redseer Analysis Purchase1 Channel % Ramadan shoppers • Brands need to focus on discovery as online becomes the dominant mode of discovery • Optimize the social commerce experience by removing challenges in converting hesitant users • Brands will need to get high-quality data on their new digital businesses • Harness the power of influencers who have been able to utilize the power of digital platforms Note(s) :1. Which channel will you use to purchase the during Ramadan? (Includes UAE + KSA respondents)
  9. 9 © Redseer Authors Sandeep Ganediwalla Managing Partner Akshay Jayaprakasan AssociatePartner Abhishek Rajput Senior Consultant
  10. 10 © Redseer Project Team Kayan Hammoud Business Analyst Milli Saklani Business Analyst Sushri Padhi Business Analyst Tania El Zein Research Analyst
  11. Solve. New Disclaimer and confidentiality notice: This document contains information that may be confidential and proprietary. Unless you are the intended recipient (or authorized to receive this document for the intended recipient), you may not use, copy, disseminate or disclose to anyone the message or any information contained in the document. © 2023 Redseer Consulting confidential and proprietary information Dubai. Bangalore. Delhi. Mumbai. Singapore. New York Thank You