1. 2022 to be another strong year as gatherings expected to be back, consumers to spend more
2020 was a year when consumer spend reduced due to the pandemic, however the channel mix evolved significantly towards online, aiding 55% YoY growth for the Ramadan festive period. 2021 did one better as people were now accustomed to the new way of life post pandemic and the online channel spending behavior was also more developed now.
The pent-up demand from previous year resulted in a 60% YoY growth. This year we expect further strong growth of ~40% despite the peak last year as consumers are eager to celebrate the festival and get together and have expressed desire to spend more in our research.
2. Celebrations will drive Ramadan purchases and Grocery, Fashion key sectors that will see spike in demand
Note(s): 1. What are the needs you’re addressing while purchasing products during Ramadan? – 2. Which sectors are you looking to buying from online channel?
Behind a major facet of this year’s Ramadan spending is the overwhelming consumer sentiment to actively prepare for gatherings. This includes purchasing all necessary cooking ingredients, sweets as well as home decorations in anticipation.
Furthermore, the need for acquiring new clothing and being well groomed for occasions results in a high intent to buy for Fashion, BPC segments as well. Electronics intent to buy is lower compared to Black Friday and the segments contribution to GMV will reduce during Ramadan.
3. The season has two distinct spikes – Pre Ramadan week which is dominated by Grocery purchases and Pre Eid week where Fashion/Beauty takes center stage
Note(s): 1. Ramadan Sales season starts from March 25th to May 8th – 2. Figures plotted are for UAE but represent the trends across markets
This chart highlights the fluctuations in sales across different sectors through the 45-day period under consideration. Two peaks to highlight here – first one is Pre Ramadan where a lot of grocery stock up happens to cook for upcoming get togethers. There is also a spike in home segment as people look to decorate their homes. The second peak is right before Eid, where there’s an increase in demand for Fashion and Beauty segment as people prepare for occasions and purchase gifts for friends and family.
Stay tuned for further insights on what took place and what our star-studded panel had to offer including our detailed Ramadan Retail Report, to be circulated later on.