Saudi Arabia has become an increasingly vital market for all types of retailers – from luxury to FMCG. But is the Saudi consumer market changing shopping habits, spending patterns, preferences, or all of the above? The answer lies in the dynamic and evolving consumer landscape, and brands must be ready to adapt.
Several factors are driving this transformation. Salaries are on the rise, and more women are joining the workforce, contributing to an increase in household income. Saudi Vision 2030, with its ambitious goals of economic diversification, social reforms, urban expansion, and digital transformation, is reshaping lifestyles. Emerging sectors such as sports, culture, and entertainment are also playing a role, influencing how Saudis allocate their spending – what they buy, where they shop, and how they shop.
One of the most significant shifts has been in e-commerce. With the Kingdom’s digital transformation in full swing, online shopping has skyrocketed. Local digital retail platforms like Zid and Salla are thriving, while global players – particularly fast fashion brands such as Shein, Temu, and Trendyol have eagerly entered the market. However, retailers face stiff competition in this fast-evolving environment, finding it increasingly challenging to keep pace with digital consumption trends.
For brands, this presents an exciting opportunity, but success requires more than simply entering the market. Understanding the nuances of Saudi culture, behavior, and shopping motivations is essential. This is where digital platforms come into the picture.
The Saudi consumer market
While many global markets lean on influencers and celebrities for shopping inspiration, Saudis turn to their inner circles-close friends and family- for trusted advice. Saudis use digital platforms like Snapchat to share purchases and discuss recommendations with those who matter most, making it the Kingdom’s top app for sharing shopping choices – 41 per cent more popular than competitor apps on average.
Shoppers in Saudi Arabia are nearly eight times more likely to rely on their close connections for purchase decisions than on influencers or celebrities. This cultural insight offers brands a powerful opportunity. By being present on digital platforms where these connections thrive, they can reach consumers in the moments that matter most.
Snapchat’s advertising approach is evolving to align with shifting market demands, increasingly focusing on lower funnel, direct response advertising. This strategy aims to ensures stable and predictable outcomes by engaging a larger and more diversified base of advertisers.
Moments and timing are also crucial in Saudi retail. Seasonal celebrations, such as Ramadan and Eid, are deeply ingrained in Saudi culture, and brands can benefit by aligning their messaging and campaigns with these key periods. Aromatic, for example, almost tripled its ad spend during the Saudi National Day campaign while maintaining an impressive ROAS of 6.52, achieving a 118 per cent increase in purchases.
While the increase in spending power has not fundamentally altered Saudi consumer culture, it has accelerated changes in how and where people shop. For brands to remain relevant, they must prioritise the cornerstone of Saudi society – connections
By focusing on authentic relationships, leveraging advanced technologies, and aligning with cultural moments, brands can unlock significant opportunities in this rapidly evolving market. Regionally, 6thStreet set out to reach and acquire new audiences across the GCC. Using digital platforms such as Snapchat, the brand tapped into a unique and engaged base of high-intent shoppers and was able to celebrate 192 per cent Higher ROAS.
As the saying goes, it’s not just about what you know – It’s about who you know. And in Saudi Arabia, knowing how to connect with the right people, at the right time, on the right platform, can make all the difference.
By Antoine Challita, Head of Sales at Snap Inc. MENA
