Saudi Market optimistic as Coronavirus repercussions settle down

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  • 46% increase in spending during Ramadan versus last year
  • 57% increase in spending on Al-Fitr holiday versus last year
  • 1 in 2 plan to travel within the country, the most popular destinations are Jeddah & Makkah.

The United Arab Emirates:

A study conducted by Toluna, an international online research company, in the Saudi-Arabian market, indicated that expectations were raised for the festive period of the Holy month of Ramadan and Eid Al-Fitr.

While 61% of respondents express their optimism that life will return back to normal this year, the study reported a 57% increase in spending on gifts for Eid Al-Fitr; this is due to the desire to make this year’s Eid special after two years of pandemic and the loosen up of the force majeure conditions that resulted in closures and disruption of social gatherings. 

The study showed that this year consumer shopping plans for the occasion in KSA is 46% higher than last year, across all sectors, including entertainment (+41% than last year), socialising (+38%), seasonal sales (+37%), travel, accommodation and dining in restaurants (+37%), food delivery (+39%) and cosmetics (+24%). 

85% of respondents would like to treat themselves and family members, 82% confirmed that shopping during the holy month is considered essential to celebrate the occasion and the same percentage confirmed their enthusiasm to see new brands designs inspired by the spirit of the occasion. 

Sweets, toys, cash and perfumes ranked high among the list of most popular gifts that residents of the Kingdom plan to buy for family members: sweets (53%), cash money (Al Ayadi-49%), toys and perfumes (48%). 56% of respondents reported that they are planning to buy most of the Eid gifts by mid-Ramadan, still, many people will wait for end-Ramadan and Eid sales offers to buy the Eid gifts.

Growth in e-commerce for the fashion category

Shopping for fashion items is shifting towards e-commerce with 43% planning to shop more for these items online versus 20% offline. For most categories however, the shopping channel is likely to be the same during Ramadan versus rest of the year. However, categories like groceries and chocolates and sweets will be shopped more offline than during other times of the year: groceries (42% offline versus 30% online), chocolate, dates and sweets (40% vs 29%), household cleaning items (34% vs 29%). Besides fashion, consumers shopping for fragrances, cosmetics, toys and jewelry and watches are also planning to spend more online, an indication of the growing trend towards e-commerce.

57% increase in spending on Eid gifts

Toluna’s study showed a 57% increase in spending on gifts for Al-Fitr this year which stems from the desire to make this year’s holiday a special moment after two years of restrictions caused by the pandemic. As for the Eid holiday and with life returning to normal, 81% of respondents said they wanted to spend time on family and friends’ visits, 77% plan to invite friends, 53% plan to travel across the Kingdom, especially to Jeddah and Mecca, and 35% will travel abroad to foreign destinations most notably Egypt and the United Arab Emirates.

About Toluna

Toluna is a leading digital insights market research company, enabling quick and cost-effective market research insights:

  • Toluna has proprietary online panels in 70+ markets with 40 M+ highly engaged consumers.
  • Our team of 2,800 out of 24 offices delivers around 40,000 projects annually to many Fortune 500 companies (i.e. NBC Universal, BBC, Publicis Group, Dentsu, The Boston Consulting Group, Samsung, Qatar Airways, etc.).
  • Toluna focuses on solutions with speed which makes it possible to obtain data of N=1000 sample size within half a day in many countries. Fieldwork is monitored in real time and our automated dashboards enables to derive insights in the moment.
  • We offer end to end market research services with flexibility to meet your project-based needs (i.e. questionnaire design, survey programming & hosting, sampling, analysis, reporting, etc).

One of our USP is owning the industry’s first end-to-end, single login real-time consumer intelligence platform that automates research and provides benefits of speed and cost – delivering on the promise of lean and agile research with quality data, in real-time and on-demand. This digital platform can be used across BHT, Online Communities (qual focus groups), Concept Testing, Pack Testing, Analytics, DIY, Mobile surveys, Dashboards, Digital Tracking, Max Diff, Conjoins, etc.