- 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.
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