Marketing intelligence giant, Mintel recently launched a report that explains how consumers in the Middle East are challenging the largely misinterpreted conception of them being big spenders, hence proving how they are actually looking to cut costs.
The report published by Mintel provides an in-depth analysis of why consumers in the MENA region are looking to cut costs over maintaining their loyalty to brands most-shopped from.
Research analyst for Consumer Lifestyles in the Middle East and Africa, Sarah Al Shaalan divides the insights into three rules that brands can pay attention to in order to maintain effectiveness and potential goals:
The pandemic wreaked havoc across the world and the already unstable economy of the GCC was no exception. The economic setback along with other unprecedented challenges worsened financial tension amidst consumers thus leading them to spend cautiously while monitoring their spending and consumption regularly.
Another interesting finding worth noting from the report explains how consumers in the Kingdom of Saudi Arabia choose to save or invest finances over spending it.
One trend that the report records in the post-pandemic era are consumer sensitivity towards rising prices of FMCG products. Around 35% of the surveyed consumers in KSA find the lowest priced items when shopping for F&B products, even after the pandemic ended.
In this light, promising discounters have steadily increased their reach in the market. The report highlights the recently opened supermarket chain, VIVA, which was launched in the UAE in February 2018 and has now emerged as one of the most popular household goods and grocery chains in the country.
Brand loyalty under threat
With the above-stated points, it’s obvious that consumers across the region are comparing prices and sticking to their budgets at every chance they can.
However, brand value and its regional sourcing are categories that consumers are still prioritizing.