Dubai, UAE – The holy month of Ramadan is proving to be a boon for online shopping across the Middle East and North Africa (MENA) region. A new study reveals a surge in purchases fueled by tradition and a growing preference for local and personalized gifts.
The report, conducted by Flowwow, a UAE-based gifting marketplace, and Admitad, an affiliate marketing platform, highlights a significant increase in online spending compared to Ramadan 2023. The UAE is leading the charge, with an average order value of US$102, followed closely by Kuwait and Qatar.
Flourishing Flowers and Personalized Treats
The spirit of Ramadan is reflected in the specific categories witnessing the most significant growth. Flowwow saw a staggering 220 percent increase in sales of their original bouquets compared to last year. The “confectionary” category is experiencing similar success, with the first three months of 2024 already generating half of the total sales for 2023. This trend extends to customized cakes, with a 36 percent uptick in custom designs, a 26 percent rise in personalized bento cakes, and a 15 percent increase in chocolate-covered strawberries featuring unique touches.
Beyond Gifts: Travel, Electronics, and Food Delivery See Uptick
While gifting takes center stage during Ramadan, the study reveals a broader rise in online purchases across various sectors. Hotels have seen a remarkable 56 percent increase in bookings, followed by a 40 percent jump in airplane ticket purchases. This suggests a potential rise in travel for Ramadan vacations or visiting family.
Online convenience is also shaping daily life. Electronics sales have grown by 30 percent, indicating a potential focus on entertainment or communication during Ramadan nights. Food delivery services have also seen a 26 percent increase, likely due to the emphasis on evening meals and gatherings during the holy month. Interestingly, even sporting goods have experienced a 21 percent surge, suggesting a continued focus on health and well-being during Ramadan.
The Rise of Local and Personalized Gifting
The report highlights a growing trend towards local and personalized gifts. Flowwow has observed a 65 percent increase in online purchases from local UAE brands in March 2024 compared to last year. This preference extends to cosmetics and fragrances, with a notable rise in demand for handmade varieties.
Experts attribute this shift to a desire for authenticity and supporting local businesses. Local artisans often cater to multicultural preferences, offering unique products that resonate with a diverse customer base. This trend aligns with the UAE’s solid cultural gift-giving tradition and digital landscape. Flowwow predicts a significant growth prospect for the online gifting market in the UAE, with a projected compound annual growth rate (CAGR) of 19-20 percent between 2 and 2028.
More Orders, Smaller Baskets: A Shift in Shopping Behavior
Admitad’s analysis reveals an interesting shift in shopping behavior during Ramadan. While online purchases have increased by 15 percent compared to last year, the total amount spent has remained relatively stable. This suggests that shoppers are making smaller, more frequent orders. This trend aligns with the focus on thoughtful and personalized gifts and the convenience of online shopping during Ramadan’s busy schedule.
Celebrating Traditions Through Digital Convenience
Anna Gidirim, CEO of Admitad, emphasizes that online shopping is about convenience and finding meaningful gifts that celebrate traditions. “As Ramadan brings together tradition and modern shopping, we’re seeing more people buying gifts online,” she remarks. Gidirim expects online shopping to reach new heights as Eid Al-Fitr approaches, a time when gift-giving is particularly significant.
Looking Ahead: Anticipated Growth in Online Gifting
Flowwow anticipates a continuation of the online gifting trend as Ramadan progresses. They predict a surge in specific categories towards the end of the holy month. Mono bouquets and original flower arrangements are expected to increase by 75 percent and 55 percent, respectively. Festive-themed cakes, cupcakes, and chocolate-covered strawberries are also predicted to experience significant growth. Traditional sweets sets and themed gift hampers are also expected to see a moderate rise.
The study by Flowwow and Admitad paints a clear picture: Ramadan is driving a surge in online shopping across the MENA region. This growth is fueled by a confluence of factors: the desire for convenience, a preference for local and personalized gifts, and celebrating traditions through thoughtful purchases. As online platforms offer a more comprehensive selection and cater to the specific needs of Ramadan shoppers, the trend will likely continue well into the future.