During the upcoming Ramadan period, the MENA and SEA regions, with their large Muslim populations, are expected to generate around $150 billion in retail sales. While enthusiasm feels the pinch of inflation; each sector is experiencing different trends. Moreover, consumer behaviour is expected to undergo significant shifts, with discovery being disrupted, online search declining and an increase in popularity of community channels, brand apps and print media.

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Ramadan 2023
Changing habits, evolving patterns
Market Perspective
March 2023

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MENA and SEA, two Muslim majority regions are expected to see ~$150 Bn
retail sales during Ramadan
Note(s): 1. How enthusiastic are you to participate in Ramadan Shopping Event? (Excited+Happy)
Source(s): Redseer Analysis
Ramadan Shopping Excitement1 – Country Wise
In % Internet Users
Retail Ramadan Sales
$ Bn, 2023F
83% 82%
76%
Indonesia
UAE KSA
70%+
will do get togethers during
Ramadan
Grocery & Fashion
to be the most purchased
categories
60%+
prefer online channels
44%
56%
SEA
MENA
$150 Bn

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However, shopping excitement is predicted to be lower than last year
Source(s): Redseer Analysis
Overall Customer Behavior UAE KSA
Ramadan excitement comparison
with previous year1
“WhileI am looking forward to better product
assortments, usually none of the brands that I like
have great deals hence I am not very excited ”
- Housewife, Asian Expat, UAE
“My spending would be subdued this year;
I'm not excited for the sales either as I am
not planning to buy unessential products”
- Working Male, Saudi Local, KSA
Ramadan Shopping Excitement1
% Ramadan shoppers
Note(s) :1. How enthusiastic are you to participate in Ramadan Shopping Event? (Includes Excited+Happy); Change in 2022 excitement as compared to 2023 excitement

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Despite macro environment, sectors such as Fashion, Food service and Travel
will see surge in sales
Sector UAE KSA Highlights
Fashion
• Festive/party events and new
spring collections uplift fashion
excitement
Grocery
• Varied excitement level for grocery
across countries
Food
• High intent for outings and get
togethers boosting excitement
Home
• Home purchases to see plunge in
MENA countries
Electronics
• Non lucrative deals and offers in
electronics will reduce excitement
Travel
• International travel sentiment
stronger in MENA owing to high
expat population
Automotive
• Stable growth is expected across
countries
Real Estate
• A slight normalization expected
compared to the peak demand in
the previous Ramadan
Current
Consumer
Excitement
level
Ramadan Shopping Excitementcompared to Last Year
Increase in intent to buy compared to last year
Source(s): Redseer Primary Research and Analysis

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Consumers are expected to exhibit significant shifts in their behavior
Source(s): Redseer Analysis
-50%
Cooking expected to decline
+33%
2022 2023
+44%
Get togethers will see rise
Gifting will become more
common
Intrinsic Needs during Ramadan1
%, UAE+KSA
+14%
Planned purchases will
become prominent
Implications
Unlocking discovery opportunity will be key to drive sales
Grocery purchases expect to witness decline
Dining out, food delivery and Travel will see rise
Revenue opportunity for q-commerce & gifting retailers
Change compared to previous years
Intrinsic Needs
Note(s): 1. What are the needs you're addressing while purchasing products during Ramadan?

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They will be open to trying new products, which presents an opportune time for
D2C/private label brands to gain a foothold in the market
Inclination to Purchase from New Online Brands
In % Ramadan shoppers, 2023
90%
79%
73%
Indonesia
KSA
UAE
Best time for D2C/private label brands to shine
Top Motivators
Fast Delivery
Product Quality
1
2
Free Shipping
1
The impact of delivery speed on the
purchase consideration is high
Product Variety
2
Source(s): Redseer Primary Research and Analysis

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Additionally, discovery will be disrupted, with online search declining and an
increase in popularity of community channels, brand apps and print media
Source(s): Redseer Analysis
Product Discovery Channels Preference
In %, 2022-23, UAE+KSA
Online search expected to slump Communitychannels will thrive
Direct brand channel continues to be
important
Print witnessing renaissance
2022 2023
-23%
KSA to see higher plunge thanUAE
Considerable rise in KSA
compared to UAE
Equallyimportant in both KSA and
UAE
2x jump in preference in both UAE
and KSA
2022 2023
+5%
2022 2023
+27%
Digital Media
Reviews
2022 2023
+2%
2022 2023
+125%
Online Search Brand/Retailer App Print
Note(s) :1. From which channel do you get inspiration (discover) for your purchases on Ramadan? (KSA respondents)

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Consumer preference for social commerce is expected to be high while buying
products online
Ø 22%
Electronics BPC Home
Grocery Fashion
23%
27%
24%
20%
18%
1 in 4 consumers are open to purchasing products
through social commerce
Key Strategies to Leverage Social Commerce
Descriptive
Source(s): Redseer Analysis
Purchase1 Channel
% Ramadan shoppers
• Brands need to focus on discovery as online becomes the
dominant mode of discovery
• Optimize the social commerce experience by removing
challenges in converting hesitant users
• Brands will need to get high-quality data on their new digital
businesses
• Harness the power of influencers who have been able to utilize
the power of digital platforms
Note(s) :1. Which channel will you use to purchase the during Ramadan? (Includes UAE + KSA respondents)

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Authors
Sandeep Ganediwalla
Managing Partner
Akshay Jayaprakasan
AssociatePartner
Abhishek Rajput
Senior Consultant

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Project Team
Kayan Hammoud
Business Analyst
Milli Saklani
Business Analyst
Sushri Padhi
Business Analyst
Tania El Zein
Research Analyst

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