In the middle of the Corona crisis, the people of the Middle East are undergoing a major change and i.e. a change in their shopping patterns. When once offline retailers ruled the MENA region, today online businesses are taking over due to the change in consumer behavior.
So, let us understand how COVID-19 made MENA consumers change their shopping behavior.
The COVID-Effect
The effects of COVID-19 are very well known to all of us.
The way it has shaken the world economy, only God knows how long it will take to recover. The Middle East too experienced a major downfall due to lockdowns and restrictions as the oil export came a halt which was a significant contributor to its economy.
Apart from that, the offline shops were temporarily closed, and there were no tourists either.
All of these led to one good thing though. The consumers of the Middle East, who majorly depended on offline shopping, explored and migrated to the online market in large numbers and are now willing to continue with the same.
The Behavioural Change
As per the surveys conducted during the lockdown period from February to April, a significant shift in consumer behavior was noted in the people of MENA regions.
Middle East consumers, who were fond of shopping for luxurious products and spent almost half of their income on buying expensive and branded products pre-pandemic, switched to essentials like grocery shopping online due to the COVID-19 crisis.
Hybrid shopper behavior is commerce experiences that combine elements of digital commerce and in-person physical shopping. While the digital part happens online, the physical aspect can take place, for example, in a store, at an event, or over the phone.
Since the retail landscape was impacted by social distancing, online shopping was the only source and once they started using it, are now finding it more comfortable and safer than going out for purchase, risking lives, when the pandemic is still between us.
Because of their share of financial strain due to declining income, job cuts, reduced working hours, health crisis, household expenditure, patient care, etc., the people of the Middle East are now becoming more price-conscious, and are increasingly looking for ways to save.
At the same time, they have started embracing digital and low-touch activities, including video conferences, e-learning, and grocery delivery, with a high intent to continue some behaviors after the crisis.
Impact of COVID on Buying Behaviour
Like consumers around the world, the people of MENA also went back to basics, shopping for groceries while cutting down on luxury expenditure. Prior to the lockdown, MENA consumers prioritized travel, accommodation, and entertainment, but since the pandemic, grocery tops among the list of priorities.
It was found that 60% of Middle East consumers spent their income on grocery shopping online now while dropping their spending on clothing, footwear, games, etc.
About 53% of consumers have stocked up groceries and are constantly checking up on offers on grocery delivery mobile applications. With people working from home, the consumption of groceries and pantry staples has increased due to home cooking.
About 39% of Saudis are now preferring home-cooked food to buying food from outside due to cleanliness and contamination concerns.
As the digital engagement of Middle East consumers raised magnificently during the pandemic, retailers must take leverage of this opportunity to target consumers and meet their expectations as closely as possible by creating a balance between their online offering and traditional stores, as well as, by gearing up their omnichannel marketing on both platforms.
Looking at the current demand, starting or expanding a grocery delivery app for the people of the Middle East may work for you now and in the future as this change in consumer behavior is going to stay for a long.
So, if you are on the hunt for a grocery app development company in the Middle East, to get your grocery store website development solution built in a way that appeals to the consumers of MENA, then get in touch with a grocery app builder in the Middle East.
Impact of COVID on Media Usage
Already internet penetration and social media usage in the Middle East was on high terms before COVID-19, and now, due to lockdown, restrictions, and social distancing, media usage has increased further.
Increased use of online shopping channels particularly via smartphones was reported in the MENA region during the pandemic.
About 31% of Middle East consumers preferred shopping daily or weekly from their mobiles during the lockdown while 44% of them revealed that they had ordered products online using a mobile app, more than any other source.
In fact, you will be surprised to know that about 92% of consumers who increased their shopping via smartphone said that they are “very likely” (63%) or “likely” (29%) to continue online shopping once social-distancing measures are removed or the pandemic ends.
Digital behavior of consumers increased tremendously as people began downloading apps for online shopping, entertainment, staying in touch, etc. 50% of Saudis revealed that they spent more time on social media apps since the outbreak began while 34% of them spent their lockdown watching Netflix and more and 21% killed time playing mobile games.
Impact of COVID on Shopping Preferences
Offline retail shops and malls were the favorite hangout spots for MENA consumers as they got everything from local to international in one place. But, with the commencement of eCommerce, consumers began to take interest in online shopping as well.
Now, with the coronavirus ruling the world right now, eCommerce platforms have become the most preferred shopping destination all over the world. The sale of personal care and household needs saw a sudden surge during the outbreak than non-essential ones.
Also, MENA consumers who preferred only cash on delivery have now shifted to digital payments. Many e-wallets like Apple Pay, MadaPay, and BayanPay saw increased usage during the pandemic, thereby raising the bar of trust in online shopping among MENA consumers.
Wrapping up
Until a vaccine is found, and may even after that, things may not return to normal as it was like before.
Therefore, people have started living and accepting the new normal. COVID-19 has undoubtedly bought a significant shift in consumer behavior and served the people of the Middle East accordingly; the MENA retailers are also embracing the new trends of having an omnichannel presence.