Skip to main content

KSA sees recovery with consumers to spend more than $2 bn online during Ramadan in 2022; RedSeer Report

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."

About RedSeer

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.

Media Contact:
Kayan Hammoud
+971-525808750
kayan@redseer.com


###

This press release is issued through Arab Newswire (www.arabnewswire.com) – a newswire service for the Arab World, Middle East and North Africa (MENA), and it is distributed by EmailWire™ (www.emailwire.com) – the global newswire service that provides Press release distribution with guaranteed results™

 

Comments

Post a Comment

Popular posts from this blog

Accely Announces Appointment of Alok Bapna, Ex DXC/CSC Leader as President

Accely has appointed sales and new business development veteran Alok Bapna as its new President . DUBAI, UAE -- ( Arab Newswire ) -- At Accely, we will align his experience in the IT industry with our business goals to achieve new milestones. We look forward to utilizing his expertise in various areas so Accely can offer clients tailored and refined business solutions. Over the years, Accely has been recognized as a trustworthy SAP consulting service for its innovative solutions. With a new leader in the senior management, we can enrich our core services such as IT, enterprise application support, and consulting services. As a result of Alok's diverse experience, Accely can expand into wholesale, retail, consumer goods, life sciences, engineering and construction, and manufacturing markets. Alok's approach to leadership will enhance Accely's ability to solve business problems and deliver high-quality results. His ability to address and resolve issues in the IT industry is ...
Post a Comment
Read more

Muralidharan Venkataraman Joins Accely as a Global Delivery and Pre-Sales Head

DUBAI, UAE -- ( Arab Newswire ) --  Accely is pleased to announce the appointment of Muralidharan Venkataraman as Global Delivery and Pre-Sales Head. We strongly believe that his experience and expertise will strengthen Accely’s sales strategy and strategic positioning, allowing it to effectively provide customers with a superior value proposition and business solutions. Accely offers comprehensive SAP consulting services using modern methodologies and innovation, resulting in a combination of cutting-edge technology and expertise. Muralidharan has over three decades of experience working with one of the world's leading management and IT consultancies on projects related to Enterprise Application, Business, and Digital Transformation engagements for key players. As a provider of both products and services, his experience and, as well as ours, can complement each other with the unique selling point of our technical expertise, project management, and problem-solving abilities....
Post a Comment
Read more

The Importance of Health Insurance

( ARAB NEWSWIRE ) -- In today's world, prioritizing one's health and well-being is more important than ever. However, unexpected medical emergencies can arise, and the associated costs can be a significant burden. Health insurance is an essential investment in both health and financial well-being. Gaining financial stability and peace of mind by realizing the importance of health insurance will help individuals be ready for unforeseen medical costs and ensure access to high-quality treatment when needed. What is Health Insurance? Health insurance is typically a contractual agreement between an individual and an insurance provider. It aids in the management of medical expenses. Individuals provide an insurance company with a regular annual premium. In exchange, if they are sick or hurt, the insurance company pays for a percentage of their medical bills. Depending on the plan, this coverage usually includes hospital stays, surgeries, doctor visits, and prescription drugs. Why He...
Post a Comment
Read more