Dubai, UAE- Black Friday is upon us, and the holiday season is getting closer! During this annual shopping season, retailers typically offer steep discounts.
Google has recently released a new study conducted by Ipsos that highlights key shopping habits of consumers in the UAE and Saudi Arabia ahead of this year’s Black Friday shopping season.
According to Google’s internal data, Black Friday sales are among the most sought after by consumers in the UAE, Saudi Arabia, and Egypt, compared to Brazil, the UK and the US.
The Ipsos study explores the key changes in the consumer journey when purchasing during the Black Friday season this year as the following:
Consumers are shopping new brands more than ever
Online searches are driving retail traffic globally. Every day, 15 percent of Google’s searches are new, creating constant opportunities for trends, products, and brands to change the flow of revenues to retailers. Around 33 percent of shoppers who plan to participate in the sales season don’t have anything specific in mind to purchase. 60 percent of surveyed shoppers in the UAE and Saudi Arabia look for new products and brands when browsing online during the sales season. Both good reviews and deals lead people to consider exploring new brand and retailer options for the first time.
Consumers watch videos for inspiration and purchase decisions
About 80 percent of participating shoppers usually watch a video related to the product they wanted. The study also shows that one-third of surveyed shoppers classify video content as their favorite source of ideas, and two-thirds of them consider video content a way to help them identify what to buy.
Shoppers want to maximize Black Friday
The shopping cycle in MENA begins at least two months before Singles Day as well as Black Friday and extends up to a month after the holidays. The study shows that 55 percent of respondents begin hunting for products early and do not wait for the actual sales dates. The search experience is also changing. In fact, shoppers in MENA are narrowing down their search interest by looking into the latest product offerings, or the limited-edition purchases.
Customers expect seamless shopping experience
Regardless of where they are, consumers are expecting a seamless shopping experience. Around 41 percent of survey respondents prefer to shop both online and in-store during the shopping season. The survey also shows that 61 percent of shoppers expect to find the same deals online as they would find in-store. The expectation for a seamless shopping experience extends throughout the purchase journey with search interest for ‘same day delivery’ and ‘click and collect’ growing by 25 percent year on year. MENA shoppers now care about flexible payment options more than ever before.
Deals are becoming more important to shoppers
More detailed and timely information is also key, including ratings, current deals, discounts for loyalty program members, and availability – for shipping and pick-up.
According to Google’s internal data, online shoppers in MENA search for seasonal deals on Google (e.g. Black Friday / Cyber Monday / Singles Day) more than branded or product queries like seen in the US over the last year.
2022 holiday sales expected to reach $1.12 trillion globally
New Salesforce data released shows that inflation, in the form of skyrocketing retailer costs and increased consumer prices, will play a key role in the 2022 holiday shopping season.
According to the Salesforce Shopping Index, which analyzes global data from more than one billion consumers, online sales will remain essentially flat this holiday.
November and December sales are expected to reach $1.12 trillion worldwide and $265 billion in the US.
As retailers and suppliers struggle to absorb operating costs, leading to higher prices for consumers, Salesforce forecasts the following for this holiday season:
According to the research, overall online spending will remain strong when compared to pre-pandemic. The surge in online spending seen over the last two years will remain strong in 2022, though relatively unchanged compared to last year.
Digital sales will continue to dwarf pre-pandemic levels, up to 55 percent globally at a 3-year growth rate compared to 2019 sales. However, they’ll remain essentially flat compared to 2021.
Increasing prices will mean fewer overall orders
Inflation will tamp down consumer spending worldwide. As global online prices grow 7 percent compared to 2021 and 15 percent compared to 2020 consumers’ total online orders will drop 7 percent compared to the 2021 holiday season.
Profit margins will tighten
The increasing costs for suppliers, labor, and transportation will outpace retailers’ ability to pass costs onto customers, putting 10 percent of profits at risk for retailers and brands, according to the Salesforce analysis.
Inflation will jumpstart holiday shopping early
Inflationary pressure will drive more than 4 in 10 shoppers to kickstart holiday shopping earlier than ever this year. Salesforce predicts 29 percent of holiday sales will occur in the first three weeks of November before Cyber Week even begins. That’s a 5 percent increase compared to 2021.
Shoppers will look for sustainable products
The majority of consumers, 6 out of 10, say they will look for sustainable products and shipping options this holiday season. Despite this strong preference, less than one in four brands and retailers (23 percent) will promote and offer sustainable options throughout the shopping journey.