Ramadan – Importance to Retail
Ramadan 2021 to contribute more than $2Bn to e-tail GMV, 2x that of 2019
1. Ramadan is the longest festival in our region from a retail perspective; consumer purchase intent to rise during this period
From a retailer’s perspective, the build up to Ramadan along with the actual month of Ramadan causes a high level of excitement among consumers. This indicates that Ramadan is an almost two month long period of consumer purchasing intent which is the longest retail event for a festival celebrated in the UAE. We find that in 2021, Ramadan continues to be a source of optimism as consumers show a high level of excitement despite the effects of the pandemic.
2. Ramadan 2021 to contribute more than $2Bn to e-tail GMV, 2x that of 2019
The pandemic has contributed positively to the perception of e-tail in the region and we have seen this reflected in the growth of the sector in 2020. We expect consumer stickiness to online to prevail this year as well as seen in increased adoption of online platforms. As a result we also expect e-tail GMV to rise to >$2Bn in the coming year.
3. Electronics and Fashion categories continue to lead the way this Ramadan
In the past, we have seen the electronics and fashion sectors dominate the e-tail GMV during the month of Ramadan. This year is not too different, as we expect these categories to contribute ~60% of total e-tail GMV. eGrocery has seen a dramatic rise in 2020 and this is reflected in their increased contribution to regional e-tail.
4. Apparel and Footwear causes the most consumer excitement during Ramadan
In terms of consumer excitement we find that the Apparel & Footwear category is what consumers are most excited about purchasing this Ramadan season. Traditionally this has been a strong category during Ramadan as consumers consider it to be the appropriate category to purchase gifts for friends and family. We also find a high level of excitement for Jewellery for similar reasons and a high level of excitement for Grocery owing to Iftar preparations.