UAE consumers to spend more during Ramadan, says YouGov

Dubai - Dubai

It is estimated that spending on food items will rise significantly during the Holy month of Ramadan in the UAE, Saudi Arabia and Egypt.
The latest survey conducted by YouGov found that 53 per cent of respondents will spend more, of which 93 per cent expect to increase their spend specifically on regular household items such as food, drinks and groceries.
The initial outputs from the research, which will continue to run throughout Ramadan and Eid to capture the changing habits of consumers across a number of different product groups, found that the increase in expenditure will come predominantly from an increase in the consumption of food and drink.
Due to the perishability of these items, consumers are likely to buy them regularly rather than in bulk and therefore price offs and discounts are the most appealing promotions for 78 per cent of consumers in all three countries. Offers related to bulk purchases have higher appeal for personal care and household care products.
Almost 59 per cent of consumers in Egypt expect to spend more overall during the Holy month, followed by 56 per cent of consumers in Saudi Arabia and 46 per cent in the UAE. Most consumers in all three countries expect to cover the extra cost using their regular income, whilst 29 per cent will dig into their savings. The top products consumers intend to increase their consumption of during Ramadan are dates at 73 per cent, laban at 62 per cent, yogurt at 61 per cent, and powdered soft drinks, squashes and cordials, all 53 at per cent.
Given the attraction of promotions/offers during Ramadan, the findings show that consumers are less likely to be brand loyal when it comes to food and drink products. Around 40 per cent of survey respondents overall claim that they will always buy brands that have the best offer/promotion irrespective of who makes them. Marginally fewer will stay loyal to a select set of brands and only buy brands that have the best offer/promotion among them. In addition, 22 per cent will always stay brand loyal whether there are offers and promotions or not.
Commenting on the findings, head of consumer research for YouGov in Mena, Pranay Dandekar, said: "It is evident that although there is an increase in consumption and expenditure during Ramadan, consumers' purchase patterns differ according to the type of product they are buying which impacts the offers they look out for. Brands need to take cognizance of this fact and design the right promotions tailored to specific product categories in order to stand out from the crowd and win the fight for consumer attention."
The research also looked at consumers' intended travel plans during Ramadan and Eid in 2016. When asked if they expect to travel during Ramadan, 72 per cent of respondents claimed they don't have any travel plans at all, predominantly because they prefer to spend the Holy month in their country of residence.
Respondents in Egypt at 69 per cent, and Saudi Arabia at 66 per cent, claimed they prefer to stay in their home country the most, compared to the UAE at 52 per cent. The second highest proportion of respondents in all three countries claimed they won't be travelling because they have work commitments. This was most prevalent in the UAE, followed by respondents in Egypt and Saudi Arabia.
Despite low levels of travel during Ramadan, 43 per cent of respondents in all three countries expect to travel during Eid this year. Of those that are travelling, 56 per cent intend to travel within their home country compared to 30 per cent who intend to travel aboard. The most appealing promotions for travelers during Eid are discounted promotional offers on flights at 62 per cent, followed by discounts on hotel stays at 57 per cent. - abdulbasit@khaleejtimes.com