1. Credit card adoption has been limited in MENA due to Shariah non-compliance, despite high banking penetration. Despite having a well-established banking sector, KSA faces hurdles when it comes to credit card adoption, with adoption ~20%. This is significantly lower than that of its global counterparts. The primary reason for this low adoption rate is […]
UAE is the gateway to the $1.5 Tn MENA consumer spending market. UAE contributes 15% of GDP and over 15% of regional tourist influx, its strategic location and robust infrastructure have solidified its position as global trade hub status. Pro-business policies of the government coupled with strong consumer confidence in the country; position it as […]
In the ever-changing world of employee benefits, several interesting trends have come to the forefront. The UAE region, known for its appeal to expats, continues to attract individuals looking for new opportunities. However, a competitive market has led to a fierce talent war, making it challenging for employers to retain their employees. In this dynamic […]
eGrocery market in KSA has been undergoing continuous evolution over the past few years. During the pandemic, omnichannels managed to secure a significant market share by leveraging their offline resources. However, in the post-pandemic era, they are struggling to compete with digital natives due to their inferior technology and lack of resources for fast delivery. […]
UAE has transformed into a powerful economic force. Today, while accounting for ~15% of GDP, and >15% of tourist inflow to the region. Its strategic location and strong infrastructure have made it a global trade hub over the years. More recently, the pro-business policies of the government have turned the spotlight on investors into the […]
The fusion of shopping and social media is reshaping consumer behavior and advertising strategies, offering a potential windfall of over $10 billion for those who seize the moment. Social media’s ascendancy from a communication tool to an overpowering advertising force cannot be ignored. With users now spending more than double the time on these platforms, […]
There are some interesting trends playing out in the dynamic realm of digital entertainment. OTT video & audio streaming services are thriving in developed MENA nations. These industries are shifting to ad-based models to create mass appeal and drive penetration beyond the urban elite consumers. Thus, the Digital advertising space is set to be disrupted, […]
Customer engagement platforms are empowering organizations in the region to adapt to the fast-evolving consumer landscape, providing customizable and full-stack solutions to meet the varying, cross-industry needs, of customer engagement. As the focus in the digital economy shifts from customer acquisition to retention, these solutions become increasingly important in fostering lasting relationships and driving business […]
We are delighted to unveil the inaugural Ecommerce Consumer Confidence Index (ECCI) in MENA. This index aims to capture the sentiment of consumers towards ecommerce. 1. Redseer has created ECCI to assess the consumer sentiment and confidence around eCommerce ECCI is designed to assess consumer sentiment and confidence in the eCommerce landscape by considering key […]
Social media channels, with their large userbase and increasing time spent, continue to be the influential channels for retail purchase decisions. Social commerce along with live streaming has already taken up significant market share in some of the leading markets like China and Vietnam. This trend is expected to be followed in the MENA region […]
We are excited to share with you some remarkable insights into the automotive landscape in the MENAT region. In this article, we focus on the growing preference for electric vehicles (EVs) and the potential for significant market growth in the coming years. 1. Turkey’s consumers are embracing EVs as their car of choice with 40% […]
The UAE real estate market is booming, thanks to Russian expats and local buyers. In the short term, Russian expats are fuelling the market, while in the long term, local buyers will drive growth. In this newsletter, we’ll explore the top trends and factors that are contributing to this growth, including the influx of Russian […]
Last quarter of the year has traditionally been an important period for sales in UAE contributing more than 30% of overall retail sales. While, last year, the Football world cup overlapped resulting in a significant increase in sales. This year, we expect the growth to taper down as consumers increasingly start living in the moment, […]
Despite the significant growth of digital technology and the high adoption of smart devices in the MENA region, music streaming has yet to reach the same level of popularity as other parts of the world. However, this presents an opportunity for the music industry to tap into the untapped potential of the region’s market. With […]
As we reach the mid of the holy month of Ramadan, we would like to extend our warmest greetings to you and your loved ones. This is a significant time when Muslims from all over the world come together to engage in spiritual reflection, fasting, and devotion through prayer. Here, we will take a closer […]
Ramadan is a significant time of the year for Muslims, with many observing the month-long period of fasting, prayer, and spiritual reflection. For retailers in the Middle East and Southeast Asia regions with significant Muslim populations, this period can be a lucrative time, with an expected $150 billion in retail sales. While Ramadan remains the […]
As the sacred month of Ramadan draws near, we would like to send our heartfelt greetings to you and your dear ones. Ramadan is an extraordinary time when Muslims across the globe unite to observe a month of spiritual reflection, fasting, and prayer. Here we will provide a deeper insight into the shifting trends for […]
GCC online retail sector has witnessed a rampant expansion, leapfrogging from 10 Bn USD in 2019 to 30 Bn USD in 2022. A strong digital enabler ecosystem, proactive policymaking coupled with a digital-ready population of 54 Mn, GCC ecommerce boom is unravelling. 1. GCC Online retail is sizable: ~$30bn in GMV and has been growing […]
The Middle East and North Africa (MENA) region has seen a surge in IPO activity in recent years, with several high-profile companies going public and raising significant capital. To sustain this momentum, the region will need to continue embracing new technologies and innovative solutions to drive further growth. Here we deep dive into the thriving […]
With online taking center stage for influencing awareness, research, and consideration, the path to purchase is more complex than ever before. While online presents an immense opportunity to unlock growth by driving discovery for brands, its hidden value is yet to be capitalized. In this article, we deep dive into the sharp shifts in consumer […]
Recently, the customs duty ceiling for international cross-border trade was reduced. The policy change is expected to support creating a sustainable local retail ecosystem and further accelerate the trend of partnerships between local and international retail players in the UAE. Here’s an insight into the impact of the policy update on local retail players and […]
In this article, we look back at what was a landmark year for MENA. Sectors across the digital economy saw rapid adoption and enhanced levels of consumer maturity which helped unravel the potential that the digital economy in the region holds. Here we call out some of the key highlights from 2022. 1. MENA is […]
The Buy Now Pay Later (BNPL) market is expected to grow in the Middle East region as this payment mode has a fast approval method. This is the most convenient payment method, spread over a period of time with smaller amounts of EMI. As the COVID-19 pandemic disrupted the economic conditions in the Middle East […]
Insurtech has all the makings of the long-awaited fulcrum that pioneers MENA’s insurance market level with that of developed economies, starting with the GCC. In this article, we deep-dive into MENA’s booming Fintech landscape and highlight a rapidly evolving segment within it – Insurtech. 1. Insurance penetration in GCC economies is still nascent– leaving significant […]
Pandemic driven eCommerce boom led to emergence of eB2B players, who were quick to pick on the shift in consumer purchase and attract investors, helping scale eB2B market to ~$1.2 Bn in MENAP. eB2B sector is witnessing consolidation as players look to balance focus on scale, profitability and enhance capabilities. It is important that players […]
Black Friday, the biggest shopping extravaganza, presents a ~$350 Bn global opportunity through online sales. This year Black Friday will coincide with FIFA World Cup, impacting customers’ purchase behaviour and shopping patterns. Driven by deals and discounts, the Black Friday season is filled with excitement for shoppers, and financial sharing applications are providing an additional […]
Digital Media has revolutionized how we experience sports events; its impact on World Cups has historically been massive and is expected to increase with the current edition of the Qatar World Cup. World Cup will drive audience engagement whose interest is directed not only to the 90 minutes of the game but also to behind-the-scenes […]
Food delivery market is poised to benefit from the celebratory atmosphere that has been a feature of Mega sports events. High consumption enthusiasm will drive consumer spending and acts as a springboard to boost sales. “The Qatar cloud kitchen culture is rapidly evolving and will naturally get a major boost from the celebratory atmosphere” Ramez […]
It is our pleasure to release our report “The Most Inclusive Football Tournament” covering key themes that will play out during the upcoming World Cup in Qatar. The championship in Qatar is one of the largest sporting events in a post-pandemic world. This report covers the impact, market outlook, and evolving consumer and supplier trends […]
Football world championship in Qatar is one of the largest sporting events in a post-pandemic world. Enabled by the proliferation of digital media channels and internet/smartphone penetration, an unprecedented 5 billion consumers are expected to engage with the event. Consumption is expected to spike during the tournament which overlaps with the retail festive season. The […]
MENA Food Delivery Ecosystem is rapidly evolving. While food aggregators helped restaurants weather the pandemic, their impact on the profit margins has been reduced. Restaurants are creating own unique propositions to attract consumers and consecutively restaurant own apps are now the fastest growing segment. Evolving stakeholder economics is poised to reshape the food delivery market in […]
OTT is the future of entertainment, and sports tournaments have emerged to springboard user engagement. FIFA World Cup 2022 is expecting ~5bn viewership, out of which ~1bn viewership is projected through OTT platforms. A steep spike in OTT subscriptions is seen during a major sports event, which experiences a dramatic fall post event. Thus, OTT […]
The BPC market in the MENA region is going through a transformational period driven by evolving consumer needs and shopper persona. While legacy brands have undertaken various initiatives to fulfill emerging trends, consumers aren’t fully satisfied. This has led to the emergence of D2C brands who have been able to develop meaningful relationships with customers […]
Black Friday has emerged as one of the most important events in retail in the Middle East and North Africa (MENA), owing to the wide array of deals and discounts, spread out over the 5–6 week festive period. As retail traffic is set to be high; retailers in the region need to be cognizant of […]
Black Friday is the most anticipated online shopping event of the year, owing to the wide array of deals and discounts spread out over the 5–6-week festive period. This year promises to be no different, with consumer purchase intent peaking in anticipation of this sales extravaganza. With interesting price drops and high consumer purchase intent, […]
The digital economy went through a disruption and high growth phase over the last few years, aided by the pandemic. While most sectors are still in nascency in terms of online penetration, a few sectors, like FoodTech, are more evolved in the region, with penetration levels higher than most other global benchmarks. And in such […]
1. Online viewership expected to reach 5 Bn during FIFA World Cup 2022 5 Bn eyes are expected to be glued to FIFA World Cup in Qatar, expecting a growth of over 43% than the viewership witnessed during FIFA World Cup in Russia. Covid fueled digital penetration which has given fans multiple ways for football […]
1. UAE Fashion E-tail market poised to near 20% penetration by 2025 on the back of soaring purchase frequency rates An instrumental change to the UAE fashion scene in the coming years is that increase in frequency and average order value which will drive higher wallet share for online channel, will drive a lot more […]
1. UAE Travel market has recovered swiftly, closing in on pre-pandemic levels in 2H2021… In 2020, The travel market fell by over 65% owing to mobility and travel restrictions. However, Expo 2020, Global events like Dubai Shopping festival, Sport and Music concerts coupled with practical and responsive government policies, drove tourists to UAE and proved […]
1. Grocery was the most underpenetrated online sector pre pandemic… The Grocery sector has been a predominantly offline shopped sector before the covid 19 pandemic, due to its essential nature. Consumers have always preferred to personally check the products before shopping for grocery as it directly impacts their health and wellbeing. Grocery shopping was a […]
MENA’s is riding the digital revolution. The digitally evolved population of Gen Z, Millennials, and Gen X is a fertile ground for digital solutions. Riding in the wake of the pandemic, its digital economy has experienced a manifold growth. It is estimated that 100 million plus consumers will shift to online services in next 5-6 […]
Creators are now playing an equally important role compared to celebrities as the content is more relatable and the format is more engaging
Beyond the mentioned growth drivers, this massive growth also stems from the growing consumer influx from under appreciated cohorts such as females and Gen Z.
Online channel has increased in prominence and now makes up ~20% of luxury sales in UAE currently influencing more than 90%
The fund-raising activity in 2021 in Vietnam has broken all previous year deal making records. 2022 continues to show a similar trajectory
Ramadan is a $6.2 Bn online sales event in MENA. Festive periods account for ~40% of annual e-tail in MENA.
Salary accounts of white-collar employees, with a Lifetime value of ~3X, seem an addressable market and the best way forward for neobanks
Black Friday is a critical event in the retail calendar in MENA. This event which was first launched by Souq (now Amazon) as a 3-day online only event has now expanded to over six weeks of Q4. The event has been so popular that ~20% of annual online retail sales happen during the Black Friday sale period.
Key Black Friday Trends:
a. The Market is Stabilizing:
Last year BF season achieved +90% YoY growth; this year YoY growth is expected to stabilize at ~30%; Sales to reach ~$6 bn during BF period.
b. Differentiated Strategies are going to be at play
In terms of strategy, higher focus on private labels, Inventory led fulfilment and fast delivery speed are expected.
c. Consumer is moving beyond discounts
Discounts will become a right-to-play during BF. For right-to-win, other factors such as offer variety and exclusivity and experience will be key.
Pre-COVID estimates of $16bn, the food services market is now estimated at $9bn in UAE as lockdown restrictions suppressed the sector.
Lockdown measures have led to growth for e-tail. The growth rate during the lockdown has been ~20% by order volume and ~40% by value resulting in annualized GMV of $11 Bn.
E-tailers generate ~25% of their annual GMV during Ramadan time, which when compared with White/Yellow Friday sale, stands at ~5%. Brands also realize the importance of Ramadan where many engage in activities such as launch of new products, new services, bundling of offers. A third of their annual marketing budget is spend in promotion of the same.
India Consumer Internet Performance (during lockdown) Published on: 2nd April 2020
Brands across categories are facing challenges in their existing distribution network owing to fragmentation
1. Fashion shopping in Ramadan peaks during Eid week Fashion is the most exciting retail category, when it comes to Ramadan shopping in MENA. Excitement levels for clothing are high throughout the festival season, however it peaks during the Eid week. When this trend was studied at country level, UAE and KSA followed the same […]
1: Niche models gain traction Noon and Amazon have emerged as the key players in the online marketplace in the region. However, niche players have also emerged who either have a specific focus on customer segment, category or business model. Some niche marketplace examples are around grocery, value focussed, pre-loved fashion and gifting: 2: Electronics continues to […]
Insight 1: Fast-paced etailing market growth in 2019 Online retail market grew at a fast pace this year compared to last few years – greater than 35% this year compared to ~25% annually over the last few years.
‘Convenience’ ranks much ahead of ‘price’ as the main reason to avail on-demand home services Published on: Dec 2019 Compared to many sectors, on-demand home services has a high share of ‘convenience seeking users’ Which is likely to enable players to rationalize pricing and driving better unit economics in the long run Home services consumers […]
1. Organized B&M is expected to grow at a CAGR of 20% while online retail is expected to grow at a CAGR of 35% till 2022 Published on: Nov 2019 Organized retailers have gradually expanded into several categories and no longer stick to just one format or product offering. They have been leveraging their brand […]
Despite slowing growth of mobiles category, e-tailing firmly on track to grow 32% in 2019 and reach USD ~82 Bn by 2022 Published on: Sep 2019 2019 to see the slowest growth in online mobiles sales in the last five years Despite the slowdown in mobiles, e-tailing to continue its rapid growth trajectory owing to […]
GCC – a unique market showing characteristics of both developed and developing markets GCC countries have most of their population concentrated in urban centres. This helps the organized retail players to make a deeper reach out to the population, resulting in a high representation of organized players in retail. This characteristic of the high share […]
Globally, apps are taking superapp journey by adding services to its offering and increasing per-customer revenue Published on: Jul 2019 A country/region becomes superapp ready when its large base of the population is smartphone first instead of desktop and the ecosystem of apps customized to local needs is not evolved. WeChat in China leveraged this […]
Sellers prefer an online retail platform majorly for their consumer reach followed by their UX/UI experience and word of mouth Published on: Jul 2019 Our research shows that Top 4 platforms are especially preferred for their reach, while sellers sell on social media primarily due to its zero commissions and easy to use UX/UI (and […]
Diabetes care market in India is ~$17 Bn in size as of FY21, expected to grow 3X+ to ~$59 Bn by FY31.
Buy Full Report Customization and Lead qualification key to scalability in the Online Interior Design market Published on: Apr 2019 Online Interior Design market is a large and fledgling opportunity in India (RSC estimates the market to be ~$ 100 mn in FY19, with online penetration of <1%). Despite the large addressable opportunity, leading Online […]
Buy Full Report Share of organized grocery retail in UAE+KSA is expected to increase to 80% by 2022, from current 60%; Unorganized grocery retail to shrink Published on: Jan 2019 RedSeer estimates grocery retail to grow at CAGR of ~5% to reach size of USD 73 Bn by 2022, from current USD 60 Bn for […]
1. Fintech: Funding in MENA fintech is led by lending and payment focused start-ups Published on: Oct 2018 Fintech based start-ups in the MENA region are seeing a lot of traction recently with a funding of ~USD115mn till date, of which ~75mn is received within last two years. UAE is the most popular geography among […]
1. Cab: After a first wave of rapid growth, MENA’s cab hailing market is ready for the next wave of expansion into smaller cities and realize its huge potential Published on: Sep 2018 MENA region’s online cabs market has grown rapidly to reach similar scale as its better funded regional peers in India and SE Asia in […]