(MoneyNewsWire.Net, March 31, 2022 ) Consumer demand is expected to be strong on the back of limited restrictions, stronger economy, and higher enthusiasm during Ramadan. Online retail sales in KSA is expected to increase by 25% to cross $2bn during Ramadan this year accordingly to a report by Redseer in partnership with TikTok.
Riyadh – (ARAB NEWSWIRE) -- Ramadan is a crucial event for retailers in KSA, with online retail sales expected to cross ~$2Bn this year or one-third of the total expected MENA sales, according to the latest report “Unwrapping Ramadan 2022 – Decoding the Upcoming Sales Extravaganza” by Redseer in partnership with TikTok.
Consumer enthusiasm for Ramadan at an all-time high
In 2020, the Ramadan period was impacted by restrictions around gatherings which muted consumer enthusiasm, especially as Ramadan is the period of heightened community interactions. This coupled with an uncertain economy resulted in low growth in 2020. However, we saw a strong rebound of growth in 2021, and 2022 promises further 25% growth on top of the spike observed in 2021.
The latest study from Redseer shows that 95% of KSA consumers are “excited” and “happy” during this Ramadan. The lack of restrictions this year coupled with stronger economic recovery has meant “pent-up” demand for community gatherings is expected to be back.
Digital Economy thrives during Ramadan
Online channels have emerged as an important driver of the KSA economy. These channels will directly contribute more than 10% of retail sales during Ramadan period. Grocery and Fashion categories are expected to see the fastest growth as consumers prepare to cook for their friends and family during this period and buy gifts.
Among the most noticeable impacts that Ramadan has on consumers is importance of newer formats such as shortform in influencing consumer’s buying decision. Akshay Jayaprakasan, Engagement Manager at RedSeer, elaborated, “Consumers want to be informed about products by relatable people in a more light-hearted and entertaining manner, which maximizes engagement and drives up conversion.”
Relevance is the new reach
Perhaps one of the most prominent themes to emerge this Ramadan is the overwhelming sense of the need for connecting with and belonging to a community. Consumers are increasingly connecting with social media influencers or creators to learn about new products.
Jochen Bischoff, Head of Business Partnerships for Consumer Brands at ByteDance, said, “A brand’s measure of success is linked to its relevance, making relevance the new reach. Relevance is amplified by creativity, emotions, and genuine consumer connections, often triggered by Creators. This paradigm shift is at the core of TikTok's proposition.”
RedSeer Strategy Consultants is a New-Age Tech-focused advisory firm serving data deficient markets of Middle East, Africa, India and South-East Asia. Our team is dedicated to providing research and analysis that guides institutions in astute decision-making and strategy formulation aimed at achieving growth.