iConnectHub
Access
Login/Register
Supplier Login
MOST United Arab Emirates and Kingdom of Saudi Arabia consumers are well aware of the economic downturn and are feeling the impact on their daily lives, but are not making wholesale changes to their consumption patterns in the grocery arena. UAE and KSA shoppers are not abandoning consumerist lifestyles and retail sales in both states remain relatively strong. Nevertheless, there are a number of downturn induced attitudinal and behavioural adjustments that need to be acknowledged and acted upon, according to results of a survey conducted by market research firm Datamonitor Thi s res earch i s a prelude to Datamonitor's Recession & Recovery* research programme, consisting of an ongoing survey of 7,200 consumers in the UAE and KSA to provide regular insights into the consumer mindset across the Middle East and how consumers are changing their attitudes and behaviours in light of unfolding events. The ongoing survey focuses on key issues such as confidence, trust and control and examines perspectives around shopping behaviour, brand perception, purchasing intent, switching behaviours, and other key lifestyle and choice drivers.
There are four observations in the way UAE and KSA shoppers have changed the way they make purchases: Quality is important, but so are great bargains Impulse buying is out, whilst shopping lists are in Private labels are worth trying Home cooking is making a comeback Consumers are looking for lower prices, but are reluctant to sacrifice quality. The global economic downturn has impacted regional consumers. In April, during the height of the economic downturn, 59% of UAE and a 49% of Saudis indicated that their personal financial situation had worsened over the previous six months. It is therefore not surprising that 'lower prices in general' have significant influence on where UAE and Saudi consumers now do most of their grocery shopping. However, the primary influence remains 'the overall quality of products sold', demonstrating the 'want-it-all' attitude of many consumers in the KSA and UAE. Consumers have been willing to shop around and rein-in impulse purchasing to obtain better value. Of those surveyed, 70% of KSA and 68% of UAE consumers now wonder more about whether-or-not they are getting value-for-money from their grocery purchases. In a bid to save money, 38% of KSA and 34% of UAE consumers have tried to change where they grocery shop, and 37% of Saudi and 34% of UAE consumers have made more of an effort to use shopping lists as a means to control spending in-store. "Industry players have an opportunity; products which meet or exceed quality expectations, but retail at a prices which are less than expected, are still likely to gain [market] share rapidly in the current climate," comments Datamonitor analyst Richard Adams. Private label offerings, whilst limited in number, have gained traction amongst consumers. Whilst Middle Eastern consumers are renowned for their brand loyalty, over half of consumers in both the KSA and UAE have given up some of their favourite grocery brands because of economic conditions. Whilst consumers are still comparatively sceptical towards private label brands, private label products benefited from switching behaviours in the Middle East: 27% of KSA and 23% of UAE consumers turned to private label products to save money during the worst of the downturn. In some categories, consumers now see little difference in the quality of private label products and market-leading 'famous' brands, and this will represent a serious challenge for a sub-set of marketers. For instance, 49% of KSA and 59% of Saudi respondents indicated that private label cleaning products were identical, or superior to, branded equivalents. It is likely tJordan ULTRA.FLY