A godsend for business
Retail trends in Ramadan 2018 are boding very well for retailers and for shoppers David Macadam, CEO, Middle East Council of Shopping Centres
We are witnessing a consumer shift in buying a wide range of products online versus in-store this year compared to last year Ameet Gwalani, Chief business enabler, Xpandretail
dubai — Businesses in the UAE are making most of the opportunities thrown open by the holy month of Ramadan, and the top three sectors that are really busy are the retail, travel and employment sectors. Malls are busy, recording increased footfall, as well as e-commerce is registering spurts in business.
“Ramadan is always a very special time and a great family and social occasion in the UAE. The retail trends in Ramadan 2018 are boding very well for retailers and for shoppers. Historically, Ramadan sales pricing in the retail stores has been very competitive and the shoppers have been very positive in their spending habits. We forecast a strong sales period for the retailers and shoppers in 2018 Ramandan,” said David Macadam, CEO of the Middle East Council of Shopping Centres.
Macadam opines that the UAE, as with all oil-producing countries in the GCC will benefit from higher oil prices. “Recently benchmark oil prices approached $80 per barrel. Oil pricing at this level will provide a ‘trickle down’ positive effect in the retail industry regionally.
People tend to spend money when they believe the future is going to be at least as good as it is today. With the higher oil pricing the positive sentiment for retail is alive and well. We would expect a more robust retail performance in the second half of 2018.”
A latest report from Criteo indicates online retail sales WILL rise by up to 42 per cent in Ramadan while travel will gain pace and spike in the fourth week, with an uplift of up to 75 per cent.
“Ramadan is a period of great significance in this region and influences purchasing and consumption patterns, due to the traditional gifting during Eid, with 61 per cent of survey respondents in Saudi Arabia and 58 per cent in UAE planning to buy gifts for others during Ramadan. It is thus important for marketers and advertisers to consider the shift in habits during this time and tailor their approach to consumers in order to provide superior value and meet their needs,” said Michele Iozzo, managing director for the Middle East and Africa at Criteo.
Ameet Gwalani, chief business enabler at Xpandretail, said: “There’s a significant uplift in online retail sales leading up to and during Ramadan, and particularly trends have shown in the last couple of weeks before Eid Al Fitr consumers are buying gifts. We are witnessing consumers shift in buying a wide range of products online versus in-store this year compared to last year’s Ramadan. Consumer electronics, fashion, food and travel are leading the way but market reports show that people are shopping online for other products too.”
He added, “Compared to 2017, in 2018 consumers are shopping across various product categories and are increasingly using the Internet to find the best deals. Online trends that have inflated the market have also provided consumers with added channels to not only deal with suppliers locally, but internationally. Travelling during Ramadan is becoming increasingly popular amongst residents of the Middle East and North Africa region, according to research conducted recently by the travel search website Wego. The firm has forecast that up to 40 per cent of users plan trips less than a week ahead and 75 per cent of Mena users prefer travelling within the region and 68 per cent of users prefer roundtrip flight bookings, which involves more than a week of stay
“About two-fifths of Ramadan and Eid trips are planned less than a week in advance. Also, more users than ever before seem to be exhibit a clear preference for travel within the region, with Cairo, Jeddah
More than half of the traveller base tend to book vacations lasting longer than one week, in the region’s busiest travel time of the year Mamoun Hmedan, MD for Mena and India at Wego
and Alexandria. Of this subset, a significant portion of the traffic can be attributed to Arab expats who travel homewards to spend Ramadan with their family members. And more than half this traveller base tend to book vacations lasting longer than one week, in the region’s busiest travel time of the year,” said Mamoun Hmedan, Wego managing director for the Mena and India.
Cairo, Jeddah, Alexandria, Kuwait, Amman, Dubai and Istanbul top the list of most flights booked in the Mena. Of these, Dubai is considered a constant favourite, being home to a wide variety of some of the most renowned hotels in the world. Travellers in the region also flock to destinations such as the holy cities of Makkah and Madinah, as well as Sharm El Sheikh. Contrary to popular misconception that productivity during Ramadan dips, a recent poll by Bayt.com revealed that 81.7 per cent of professionals in the Middle East see that Ramadan increases productivity.
According to the ‘Ramadan in the Middle East and North Africa’ poll, more than 9 in 10 job seekers ‘plan to make more time for finding a job during Ramadan’. This correlates with the finding that over two-thirds (68.6 per cent) of Mena respondents believe that more companies hire during Ramadan.
Hiring activities online do not slow down during the holy month. In fact, during Ramadan 2017, Bayt.com had one of the most active months in terms of job announcements, with more than 12,000 jobs posted in May 2017 and over 15,000 jobs during June 2017.
“Ramadan is a great month for Mena professionals,” said Suhail Masri, vice-president for employer solutions at Bayt.com. “Not only do they reflect on their personal, spiritual and professional life, they also become more focused and productive. We assure all jobseekers out there that career planning and job hunting does not stop during the holy month. In fact, many companies hire during Ramadan and many professionals find Ramadan a better time to put their career plans into action... everyone [should] make use of these opportunities and apply.”