By Andrew White
New survey shows credit crunch has not altered most Dubai consumers' spending.
Dubai residents have refused to dramatically alter their spending habits in the wake of the economic downturn, according to a new survey published Wednesday.
In a poll of 400 Dubai residents with a minimum household income of AED3,000, 58.8 percent said they did not reduce their spending on groceries in 2009. 64 percent of respondents said that they had not cut down on personal travel last year, according to the report by market analysis firm Echo Trends.
However, 53.6 percent did admit that they had cut down on leisure activities in a bid to save cash.
The report culled valuable data on respondents' spending behavior in a crisis period, and gathered detailed information on brand preferences in the Automotive, Shopping, Media, Travel, Telecom, and Leisure sectors.
According to the survey, 22 percent of those interviewed had primary bank accounts at HSBC in the UAE, with Emirates NBD and Mashreq coming in second and third, with 17 percent and 12 percent, respectively. Meanwhile Nissan was the preferred brand in the automotive sector, with 14 percent of respondents owning the brand.
In the telecommunications sector, 84 percent said they preferred Etisalat to rival du, which has been aggressive in its attempt to gain a significant market share.
I find it hard to believe such a high percentage have not altered spending habits due to the recession.... everyone I know has made some serious adjustments to their spending habits..
Grocery shopping isn't exactly an area you can drastically cut down is it! Ask someone of 3k/mth if they've cut back and they'll probably say no...why?...because they were minimal shoppers in the first place. Its difficult to cut back when you're already in a position of not being able to afford the luxuries! Try asking these same people if they have cut their spending habits in malls etc, etc and you will find a real retail story...which is why the retailors, even on these very pages, have been crying about the lack of customers, slashing of prices to attract customers and the inevitable cut in profits. Go round the malls now...the vast majority of shops have almost permanent sales! They cry rents are too high etc, etc Look at JBR Walk...the only people doing serious busines are the coffee shops and pizza delivery. Two massive franchises have closed recently; Pizza Hut and Hardies. This trend will go on and on. Go to the podium levels at JBR and in some areas they are is little or no retail going on. SADAF used to be quite thriving...now shops are shutting as their tennacy agreements come to an end. There is not enough business to go around. More will follow. This is the reality of retail in Dubai not this silly grocery article
I am sure Simon's scientific measurement of visiting JBR Walk constitute a brilliant method of analyzing the consumer trends in Dubai. Contrary to some people's wishful thinking, Dubai residents are feeling more at ease, which is translated in their shopping behaviour. Simon and others like him should start looking at the cup half full and since you live in this country try to have some belief in its ability to rise up from the challenges, otherwise your job would be at risk and your lavish lifestyle would dwindle to resemble the place you came from!
strange, how they made this study? All will continue spenidng on food, but you must notice that all at JBR are on cafe's and cheap places to have fun...thats all...
I make very valid points to the educated mind...your comment has no basis or counter points. For someone who has 'analyst' as their name, there's appears to be very little analytical commentery coming from you. From your comments i do actually see that you misunderstand my points and haven't read them correctly. Optimism is great but it has to be based on something and not just hope. Hope is a road that leads to nowhere. Head in the sand comments such as yours, who can not counter any of the points raised, is what Dubai is suffering from right now...denial. Seeing such reports published that give an artificial perception to the reader is something that shouldn't go unchallenged. It makes for a better society.
Pls read this news article in today's AB to add to the confusion http://www.arabianbusiness.com/579602-68-dubai-households-feel-downturn-hurt-them--survey All these based on surveys to suit whom we do not know