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Covid-19 has been instrumental in making consumers more digital

Dubai - In-store shopping will remain important to Middle East consumers, since shopping malls and physical stores are places to inspect the products in person, explore special offers, and also spend time with friends and family

Covid-19 has been ‘instrumental’ in making consumers more digital, with recent research by PwC reporting that 67 per cent of Middle East consumers believe that they have become more digital in the last six months ‒ accelerating the shift online for both consumers and retailers.

“While we have seen more and more regional consumers shop online over the last few years, historically, there has been some resistance, particularly when it comes to groceries and big ticket items,” explained Norma Taki, Consumer Markets leader and Transaction Services partner at PwC Middle East.

However, consumers that were previously more likely to go in-store have gotten a taste of the convenience and ease that online and mobile shopping provide, while retailers that were previously hesitant to invest in their e-commerce offering have realised that it is nothing short of an imperative, she said.

Taki added that, as retailers continue to invest in their online presence and provide a more frictionless service to their customers, she expects the proportion of regional consumers who shop online to grow. “That said, physical stores will remain important as part of an omni-channel approach. They will continue to be places where consumers can inspect the products in person, explore special offers and spend time with their family. With this in mind, retailers should rethink the concept of the physical store and, in particular, the in-store experience and utilise emerging technologies, such as AI, AR and VR, to attract customers to the store.”

According to the Middle East findings of PwC’s Global Consumer Insights Survey 2021, online shopping and mobile shopping have accelerated due to the Covid-19 pandemic and are here to stay. PwC’s follow-up Covid-19 Pulse survey in May 2020 found that 53 per cent of Middle East consumers had increased their use of smartphones for shopping in response to the pandemic, compared with 34 per cent of global consumers. The latest data shows that mobile is now the main online channel, with 47 per cent of regional respondents saying they use their smartphones most frequently for purchases, compared with 39 per cent of global respondents.

“The changes in the e-commerce landscapes that we have seen over the last year and a half have been monumental,” said Taki. “With 48 per cent of UAE consumers in our survey shopping online via their smartphones daily, we’re confident that the UAE online retail space will only continue to strengthen.”

Takis also noted that, in the short term, Covid-19 has made Middle East consumers more price conscious; 77 per cent have been shopping with discount retailers in the last six months, and are focused on saving. As we move out of the pandemic, this may lessen, she said.

“On the other hand, increased focus on environmental sustainability is a more permanent shift,” Taki added. “Even between our pulse surveys, one fielded in October 2020 and the other in March 2021, we saw an uptick in the number of consumers who engage in sustainable behaviours, such as purchasing from brands that are supportive of the environment and making a difference in the society, buying more biodegradable products and choosing items with less packaging.”

PwC’s latest results found that 70 per cent of regional consumers also said that they are including more plant based foods in their diet due to sustainability principles. This is a 17 per cent increase from the 2020 Global Consumer Insights Survey fielded in late 2019. In addition, due to growing awareness of individuals’ carbon footprint, 39 per cent of consumers are now more likely to pay a higher price for local produce. This shift to sustainability is particularly true for older consumers. Younger consumers between the ages of 18-24 believe that the quality of sustainable products isn’t consistent or that there aren’t enough sustainable options on the market.

“The focus on sustainability was a standout for us,” Taki said. “While most of the trends that we saw in our research have been around for a while and have just been accelerated, sustainability has historically not been much of a focus area for Middle East consumers. Covid-19, economic and social considerations have had a real impact on what consumers value in the region and globally and prioritise.”

rohma@khaleejtimes.com