Khaleej Times, Sunday, May 07, 2023 | Shawwal 17, 1444
2 in 3 Middle East shoppers adopting cost-saving behaviours due to rising prices
Emirates:
At least two-thirds of consumers in the Middle East are
adopting cost-saving behaviours as consumers become more cautious about
spending.
According to PwC Middle East’s latest Global Consumer Insights Survey – Pulse 5,
‘Inflation and rising prices shape a new hybrid Middle East consumer’,
delineating the recent market trends in the Middle East.
The survey showed, rising prices of household items were the primary concern for
a significant number of respondents in the Middle East, with 40 per cent in
Egypt, 35 per cent in Saudi Arabia and 28 per cent in the UAE.
Critical issues faced by consumers
The study by the auditing firm also highlights other critical issues faced by
regional consumers, such as longer queues, extended delivery times, and reduced
product quality and availability.
Shoppers expect to spend mainly on groceries (47 per cent), fashion (40 per
cent), and consumer electronics (36 per cent) over the next six months.
Therefore, consumers exhibit greater prudence in spending on luxury items, home
entertainment, and virtual activities and are increasingly seeking promotional
offers.
More than 40 per cent of regional and global consumers are specifically
purchasing items on offer and actively searching for retailers who provide
better value.
Online shopping is growing in popularity, but physical shopping retains its
significance, according to the report. A minority of consumers are starting to
use virtual reality for shopping, exploring virtual stores, and testing
products.
Key factors when purchasing
Based on the latest survey, consumers in the Middle East and elsewhere consider
two primary factors when purchasing.
This includes high inflation and a high cost of living, as well as supply chain
disruptions impacting the consumer industry.
This is leading Middle Eastern shoppers to explore new ways of buying goods
while carefully monitoring their finances.
Furthermore, the survey indicates that technology plays a significant role in
shaping consumer shopping habits. Although the metaverse and its associated
applications are still nascent, they are increasingly popular among millennials.
Norma Taki, PwC’s Middle East Consumer Markets Leader, opines on the findings.
“To maintain a seamless delivery of products to consumers, Middle East retailers
need to turn to technology. Consumers and retailers are impacted by rising
inflation and cost of living, which in turn influences how consumers shop and
make lifestyle choices.”
She adds, “Furthermore, consumers are entering an increasingly ‘phygital’ world
and are seeking the convenience of buying online with the confidence of buying
in-store. Today, we see that consumers are going hybrid and easily switching
channels between online and in-store shops or a mixture of both. The results
from our survey suggest that retailers need to continue to invest in training
frontline shopping assistants to meet the ever-changing consumer needs.”
As per the survey, retailers must address supply chain disruptions and in-store
and online issues to provide a seamless shopping experience for tech-savvy
hybrid consumers who demand convenience.
Retailers need to provide smart solutions that fuse the physical and digital
worlds to offer consumers an improved shopping experience.
However, regional consumers have expressed apprehension regarding data privacy,
with social media and website usage being the primary concern for 40 per cent of
users. Almost half of the regional consumers have indicated that they share no
more personal information than is essential, which is the primary step they take
to address data privacy concerns.