The baby and children’s retail sector in Saudi Arabia is set for further growth, according to a TechSci Research study.
The report mainly attributes this trend to an increase in demand from people entering the country and a marked increase in disposable income.
Other factors at play include population growth and a heightened awareness of the importance of early childhood development and of the best practices to achieve it.
The sector was previously estimated to record a compound annual growth rate of about 8.6 per cent between 2021 and 2026.
Despite the impact of the lockdown on the retail industry, growth rates are bouncing back against the background of changing consumer habits which have a tremendous potential to control this sector, according to experts.
CEO of Babyshop, Ruban Shanmugarajah, said: “The market trends in the kingdom are focused on a new parent, one with more income and who may be seeking the best for their children, with the strongest focus on quality and safety of products and the service they get from a retailer.
“We started in Saudi in 1994, at Dammam Port and now fast forward, and we are delighted to be opening our 100th store here at Village Mall, Jeddah. Maintaining the highest quality standard is very important to us, I am happy we are known for the quality in Saudi and I am happy to announce that on travel products and car seats, we now have a two-year warranty to further emphasise the highest level of confidence customers can get when they shop with us.”
In a similar vein, recent research conducted among Saudi parents reveals that 97 per cent of parents pay close attention to the quality of their children’s clothing, while 86 per cent of parents claimed to value the advice from the shopper assistants, highlighting the role of experts and services in stores when it comes to making most informed decisions.
On balance, the market trends that are likely to shape the future of infant and child retail in Saudi Arabia, according to the study are:
The growing demand for online shopping: This trend is likely to stay, as consumers seek the convenience and ability to shop from home, especially for baby and children’s products.
Increased focus on quality and product safety: This trend is likely to impact the sector, as consumers are becoming more aware of the safety hazards that can impact the health and well-being of a child. However, not all retailers are expected to deliver the highest level of quality. Reaffirming the trend, several recent studies of consumer behaviour in Saudi Arabia show that they are willing to pay extra for high-quality products that offer additional benefits, such as safe materials.
Broadening customer segment and rising income: With many youngsters and a growing middle-class population, the infant and children’s retail sector in Saudi Arabia is bound to continue to grow steadily. As disposable incomes rise and parents strive to give their children the best possible start, retailers will have the opportunity to cater to a variety of consumer needs and preferences.
