Consumer confidence is rising in the Middle East region. The PwC Middle East 2021 Global Consumer Insights found that 58 per cent of Middle East consumers confirming that they have become more optimistic about the economy.
Despite this confidence, the survey, titled “More digital and sustainable: post-pandemic priorities for Middle East consumers”, indicate that the economic and social consequences of COVID-19 have impacted consumer behaviour and that those changes are here to stay.
The survey results also make it clear that as a result of COVID-19 there has been a significant shift to digital across the Middle East – 67 per cent of regional consumers believe they have become more digital between October 2020 and March 2021, compared to 51 per cent of global consumers, particularly in Egypt where 72 per cent of consumers confirmed that.
Key consumer trends accelerated by the pandemic:
There’s an accelerated shift to online and mobile shopping
- 67 per cent of regional consumers believe they have become more digital during the pandemic, compared to 51 per cent of global consumers, particularly in Egypt where 72 per cent of consumers confirmed that.
- Mobile is now the main online channel for shopping, with 47 per cent of regional respondents saying they use their smartphones most frequently for purchases, compared with 39 per cent of global respondents.
- A major consideration for Middle East consumers shopping online continues to be fast and reliable delivery with 38 per cent of respondents ranking this as important.
In-store shopping is still important as part of multi-channel retail strategies
- Despite the pandemic, 56 per cent of the Middle East consumers, compared with 45 per cent globally, prefer visiting physical stores.
- 40 per cent of consumers who shop in-store consider increased health and safety as one of the most important attributes for a physical store. Key safety measures that regional consumers highlighted include mandatory face masks (44 per cent), social distancing (43 per cent) and hand sanitisation stations (32 per cent).
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Price sensitivity is increasing in the Middle East
- 57 per cent of Middle East consumers indicated that they have been more price-oriented during the pandemic and 66 per cent said they have been focused on saving.
Middle East consumers are more health-conscious
- 71 per cent of Middle East consumers indicated that they have become more healthy during the pandemic. When shopping for groceries, 41 per cent of respondents also said that they are willing to pay more for healthier options.
Socially aware consumers are on the rise
- COVID-19 has reinforced the growing awareness of social and environmental sustainability with 65 per cent of regional consumers reporting that they have become more eco-friendly during the pandemic.
- 75 per cent of Middle consumers say they buy from companies that are environmentally conscious, compared with 54 per cent globally; and 72per cent, versus 55 per cent globally, say they choose products with a traceable and transparent origin.
Older consumers are more likely to be focused on sustainability
“Digitalisation and sustainability are firmly at the top of consumers’ agendas. To prepare for the future, retailers across the region will need to be fast and agile to capture business from a rising generation of youthful, socially aware consumers who are digitally savvy,” said Norma Taki, Consumer Markets Leader and Transaction Services Partner, PwC Middle East.
“The speed of the shift in consumer sentiment reflected by our findings is a reminder that retailers cannot afford to adopt a wait-and-see strategy as the region’s shoppers emerge from the pandemic and the related economic uncertainty and emotional stress. A new, digitised market is taking shape, which already looks increasingly different from the region’s pre-pandemic consumer landscape,” she added.
In this rapidly evolving market landscape, Middle East retailers must rethink their business models to ensure they are meeting their customers’ changing expectations and do so quickly.
