Covid-19 has had far reaching and devastating effects globally, impacting health, wealth and lifestyles to varying degrees.
Similarly to retailers across the globe, those in the Middle East have not been immune to the challenges caused by the pandemic and have had to adapt quickly to changes in consumer expectations and habits in order to survive as a brand.
As expected, many residents within the region have reported a decrease in their overall household income caused by a reduction in hours, redundancy, illness or caring for others during and following the pandemic.
This decline in income, coupled with the increase in household bills such as food and electricity have influenced the consumer landscape, altering what, when and how people are making their purchases.
The, somewhat delayed, digitalisation of the Middle East is another factor that is shaping the current consumer landscape.
Despite digital shopping being at a historic high across the world, research shows that consumers in the Middle East still value brick-and-mortar stores which is due to varying reasons.
In the Middle Eastern region, shopping malls have always been more than just outlets for consumers, as they are also recognised as social settings that offer immersive experiences for customers to view products in a physical space inclusively with their friends and family.
However, the result of pro-longed lock-downs and mass remote working have altered traditional consumer attitudes towards shopping, with those who were previously resistant to online retail channels, now embracing digital engagement through mobile shopping websites and apps.
Consumers were forced to put their trust into digital platforms and begin a widespread acceptance of online retail channels that have created opportunities for brands to engage with customers and understand more about their interests and desires using data analytics.
Leveraging insights from data captured through digital engagement better enables brands to target customers in a tailored and more purposeful manner and in ways which cannot be achieved by in-store visits.
Whilst the surge in online shopping has presented new opportunities for brands in the Middle East, it has also introduced new expectations such as same day delivery, with consumers now seeking convenience in more ways than one.
In the face of this digitalisation shift, retailers are left with little choice but to embrace versatility to retain customers and meet mounting expectations.
As retailers in the region consider a multi-channel approach to engaging and acquiring new customers both online and offline, recent studies conclude that in-store shopping still remains the preference in the Middle East, leaving time for technological advancements as brands and customers alike continue to adapt and engage in the ever- evolving digital marketing landscape.
The region is also starting to see an incredible shift towards sustainability across both consumer and trade categories.
While consumers in the region have become more cost conscious following the pandemic and recent inflation, the concept of sustainability is becoming a more prominent factor determining purchasing decisions, with consumers willing to spend slightly more for environmentally friendly products.
The increase of economic, environmental and social awareness in the region has encouraged consumers to consider not just where their products are made, but also how, placing new requirements on retailers to meet their broader expectations as well their immediate product needs.
The mounting global concern surrounding fast fashion and waste in the fashion industry, coupled with the increase in environmental awareness has led to customers generally making more thoughtful purchases.
This growing group of conscious consumer now considers the wider implications of their purchases and would prefer to buy from brands who use less, (or eco-friendly), packaging, produce goods made of biodegradable materials, and those that demonstrate a commitment to protecting the environment through wider company initiatives.
Retailers are therefore presented with the difficult task of finding the right balance between price and ethics without compromising on quality. However, this doesn’t mean that drastic change needs to occur overnight.
Instead, brands can start by making incremental changes which can have a big overall impact, such as producing small production runs to reduce environmental waste, using materials which are less environmentally damaging than their existing fabric choices, and reducing paper and plastic packaging to only what is necessary to protect the product.
To retain loyalty, remain competitive and align with the values of their socially aware customers, brands will have to demonstrate that they’re not just aware of their effect on the environment, but that they are actively taking steps to mitigate environmental damage, reduce their carbon footprint and use more sustainable alternatives across their supply chain, whilst doing so in a transparent and accessible manner to the end consumer.
Saher Bhatti, founder of Lawful London
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