A new Oracle Retail consumer research study found that price will be paramount this holiday season as shoppers in the UAE are increasingly worried about inflated costs and tighter budgets. In response, 85% of UAE consumers already have, or plan to, shop early to ensure they can get the items they want and have more time to shop for deals.
Nearly 66% of UAE shoppers said current economic factors will cause them to spend less overall and 84% said they would consider a store financing or payment plan to cover the costs of gifts. Ultimately, UAE shoppers are ready to hit buy if the price is right, with 55% of people noting that cost will be the main factor in moving them from a browser to a buyer.
Next to inventory availability, price is the leading factor in how and where consumers will shop this holiday season. For retailers still dealing with the constant loop of limited inventory supplies or surpluses, getting merchandise and pricing strategies right will be make or break when it comes to managing margins and customer expectations.
The price is right
Some 36% of people in the UAE are worried they won’t have the money they would like to spend on holiday shopping due to rising commodity prices and 46% are concerned that the gifts they want to buy will be more expensive this year. As such, UAE shoppers are committing extra time to finding the best deal and are considering payment plans to check items off their gift list.
- 84% of UAE shoppers said they would consider a store financing or payment plan to pay for gifts over time (29% of people said they have never used one of these plans before)
- 81% said they will shop around for more deals and discounts
- 73% respondents from the UAE said they would wait for big sales moments and store holiday sales from their favorite retailers
- 78% said they would do more price comparisons online and in-stores
- 80% said they would look to shop at more discount stores
Nearly three-quarters of people (73%) also plan to wait for big retail sales moments. While Black Friday and Amazon Prime Days (55%) take the crown with 55% of UAE shoppers planning to participate, not far behind come after holiday sales (36%).
Making a list, checking it twice
Tired of staying in, UAE shoppers are eager to give the gift of experiences this year. Top gifts consumers plan to buy more of this holiday season include:
- 46% Experiences with friends and family
- 43% Fashion apparel
- 34% Gift cards
- 38% Beauty/personal care products
- 40% Footwear
- 31% Electronics
- 30% Toys
- 25% Non-fungible tokens (NFTs) or digital collectables
Stores are back, will the inventory be there?
With restrictions largely lifted, people are heading back to stores to holiday shop, but expectations for inventory availability remain high.
- 46% of people in the UAE plan to shop mostly in store and 29% in store and online
- 38% of people said out-of-stock items would constitute a bad experience
- 22% said they would simply go to another retailer if a product was not in stock
Merchandise in the wrong place at the wrong time can be the biggest cost to a retailer. We know that out-of-stock inventory compromises top line growth and customer satisfaction. Equally as important is its impact on margins. Retailers must be proactive in their placement of inventory as they consider size, style, and color of the assortment to avoid massive store-to-store transfer costs.
Delivery demands
Home delivery (71%) is still by far the most popular method to collect items bought online, compared to curbside (17%) or in-store pick up (9%) for UAE shoppers. This creates urgency for retailers to ensure gifts are delivered on time, while providing clear transparency along the way.
- 58% of people said fast delivery often determines who they will order from
- 21% of people expect same day delivery
- 53% 1-2 day delivery
- 20% 3-5 day delivery
- 65% are willing to pay more for expedited/guaranteed delivery
- 67% would consider booking a standalone delivery/collection service (like a DoorDash) to ensure they get their gifts on time.
With consumers headed back to stores, retailers must create an endless aisle experience. Whether this means an associate helping an in-store shopper find an item online and shipping it to their home or giving online shoppers an accurate view of product availability at their nearest physical location. To maintain loyalty, nearly every interaction needs to end with the consumer getting the product they want in time for the holidays, and that execution begins with order transparency.
Influencers not that influential
Social media continues to play a larger role in how consumers discover new offers, products, and brands. In 2022, social media jumped to the top spot (31%) in how UAE consumers find the most compelling offers and products, followed by in-store promotions (19%) and internet ads (14%).
- Shoppers preferred social platforms include:
- 33% Facebook
- 28% Instagram (40% for GenZ)
- 21% YouTube
- 11% TikTok (16% for GenZ)
Despite the hype, 0% of consumers turn to the metaverse to discover new products. And despite the rise in influencer B2C marketing, only 8% of consumers noted that seeing their favorite influencers suggest a product as the reason for them to hit the buy.
The Oracle Retail survey polled 8,107 global consumers across 11 different countries including the UAE. The Untold Insights survey asked consumers about holiday shopping plans and their post-pandemic retail habits.
Unwrap your complimentary copy of the Retail Shopper Outlook: Consumer Research 2022 report.
