Report: Ramadan sales to increase by 33 per cent in UAE


According to a study conducted by Toluna, a provider of market research and consumer insights, consumer shopping intention in the UAE during Ramadan will increase by 33 per cent this year compared to last year.

The increase can be seen across all sectors. Shopping on cosmetics is set to increase by 28 per cent, while grocery shopping will be up by 23 per cent.

Apart from this, shopping in the entertainment sector will see an increase of 25 per cent from last year, travel by 21 per cent, and food delivery will increase by 28 per cent.

Sweets, toys, cash, and perfumes ranked high on the list of the most popular Eid gifts for family members. 57 per cent said they would give sweets, dates, and chocolates, while 48 per cent said cash money would be given.

The next favourite gifting items were, in order of consumer preference: toys and games, perfumes, followed by cosmetics and beauty products and fashion clothing.

Additionally, the poll found that purchasing for fashion, toys, and games is migrating to e-commerce, with 100 per cent planning to do more shopping for these items online during the holy month this year; 36 per cent of respondents shop online multiple times each week, mostly for fashion, toys, and games.

The survey shows that the majority of respondents, 91 per cent, plan to give Eid presents this year, with children, parents, and friends being the primary recipients.

Specifically, 39 per cent of respondents plan to increase their spending on Eid gifts, 48 per cent aim to make the occasion more special this year to compensate for the pandemic years and to treat themselves and their loved ones.

41 per cent noted that prices are higher this year, and as a consequence they plan on spending more on gifts, and 33 per cent intend to give gifts to more people this year.

Consumer expectations regarding brands during Ramadan

When asked which factors influenced their decision to purchase during Ramadan, 53 per cent of people said deals and promotions were more important than price.

According to the study, consumers would like to see brands be more generous during the Holy Month, with 49 per cent of people wanting to see better promotions and special deals.

67 per cent would like to receive product discounts when purchasing car insurance and 59 per cent anticipate banks to give discounts on shopping during Ramadan.

Moreover, 42 per cent of the people preferred brand advertising to be inspired by the spirit of the month and focused on charity and donations, while 41 per cent preferred brand marketing to be centered on positive values.

“We saw a considerable rise in plans to spend, with customers prioritizing purchases connected to food, apparel, and gifts for their loved ones,” said George Akkaoui Enterprise Account Director, Toluna MEA.

“During Ramadan, brands must understand the cultural importance of the month and customize their marketing activities accordingly. By giving unique discounts, promotions, and producing content that is aligned with the spirit of the season content, organisations may engage with customers on a deeper level and embed brands in the community, since the impact they make during this Holy Month can have a long-term influence on customer loyalty.”