[ad_1]
Despite concerns about the global macroeconomic environment, consumer spending in the UAE and Saudi Arabia remains strong.
That’s according to research by leading management consulting firm Kearney into consumer sentiment and buying habits. Eighty-eight percent of respondents highlighted concerns about global market volatility and rising inflation, and 83 percent pointed to higher prices for goods purchased in the past three months.
Price increases for food and beverages (85%), transport including petrol prices (77%), restaurants and hotels (72%), clothing and footwear (70%) and electronics (68%) in the UAE maximum. However, despite concerns and the apparent price increase, consumers do not expect their spending to be affected as more than half (56%) plan to make a major household purchase (above AED1,000) in the next six months ($272.26 ).
market volatility
Seventy-nine percent of respondents highlighted concerns about global market volatility and rising inflation, and 72 percent pointed to higher prices for goods purchased in the past three months.
In Saudi Arabia, the prices of food and beverages (76%), restaurants and hotels (67%), clothing and footwear (63%), electronics (61%) and transportation (57%) including petrol prices The largest increase. However, despite concerns and notable price increases, consumers do not expect their spending to be affected, with nearly half (46%) planning to make major household purchases (SR1,000+) ($266.33) in the next six months.
“Overall, the UAE’s strong economic fundamentals and continued favorable policy changes for businesses and individuals have given consumers confidence in their purchasing power, regardless of the macroeconomic environment. This was further reinforced by a 16% increase in spending on discretionary items compared to the previous year, a trend we expect to continue into the new year,” commented Debashish Mukherjee, Partner at Kearney Middle East.
“Saudi Arabia’s progress over the past five years has contributed significantly to further strengthening its economic foundation. Regardless of the macroeconomic environment, businesses and individuals have benefited from favorable policy changes that have given consumers confidence in their purchasing power. FACTS This was further reinforced by Saudi Arabia’s 11% increase in spending on discretionary items compared to 2021, a trend we expect to continue into the new year,” Mukherjee commented.
online purchase
Buying online remains a popular channel for Saudi shoppers, mainly due to ease of purchase (74%), saving money (58%), wide variety (51%) and ease of delivery (49%). When it comes to shopping in-store, the importance of in-store experience and convenience has increased by 36% and 26%, respectively, compared to 2021.
“Many retailers have had to adapt their strategies over the past three years to meet the challenges posed by the pandemic. We are seeing an increasing adoption of an omni-channel approach to ensure a buffer against business impact. Consumers are also increasingly shopping online , which is forcing retailers to come up with new ways to build stronger brand connections and deliver a more engaging in-store experience,” added Mohammed Dhedhi, partner at Kearney Middle East.
Online shopping remains a popular channel for UAE shoppers, mainly due to ease of purchase (66%), saving money (62%), wide variety (51%) and ease of delivery (48%). When it comes to shopping in-store, the importance of in-store experience and convenience has increased by 36% and 26%, respectively, compared to 2021.
omnichannel approach
“During and after the pandemic, many retailers took an omni-channel approach to ensure a buffer against business impact. With online shopping also growing steadily, retailers now more than ever need to build stronger brand connections and offer new a more engaging in-store experience,” Dhedhi added.
Mukherjee concludes: “By keeping an eye on the changing face of retail and adapting their strategies, key stakeholders in the retail industry can capitalize on this positive local sentiment. This will ensure they remain relevant and satisfy consumers.” demand to remain competitive.” – trade arab news agency
[ad_2]
Source link