The eighth edition of the VML Shopper Report was released this week, revealing data-based predictions of how shopping habits will evolve in the years to come. The report surveyed over 30,000 consumers from 20 countries, two of which include the UAE and Saudi Arabia (KSA).
The report finds that consumers’ affinity for online shopping has waned globally, with many now craving a more balanced retail landscape. Another key finding is that brick and mortar retail must evolve to offer a better integrated omni-channel shopping experience.
Furthermore, according to VML’s research, mobile shopping now dominates, but many brands have been slow to deliver seamless, user-friendly experiences, which leaves consumers frustrated. Price sensitivity is on the rise, with consumers increasingly shopping around for the best deals, which challenges brand loyalty.
What does this mean for brands in the UAE and KSA?
Shopping behaviours and trends from residents in the UAE and KSA stood out in three different categories: online shopping, social commerce, and a preference towards ‘buy now, pay later’ schemes.
Both nations are expected to see significant increases in online shopping over the next five years, with social commerce playing a major factor, especially on social media platforms TikTok and Instagram.
The growth of online shopping in the region
The report finds that out of the 20 countries surveyed, the UAE and KSA are expected to witness the highest growth in online spending at growth rates of 15 per cent and 13 per cent respectively.
“In a region where smartphone penetration is exceptionally high, consumers enjoy the convenience of shopping anytime, anywhere, reinforcing its status as a mobile-first market,” said Mona Hassanie, Head of Strategy, VML UAE.
Hassanie explained that the Middle East’s online spending growth is driven by a mix of technological, demographic, and cultural factors.
“For brands, this represents a golden opportunity. By adapting to the rapidly evolving landscape, products and categories traditionally reliant on offline sales can uncover new touch points and audiences unlike anywhere else in the world,” she said.
Based on the report’s findings, brands in the region should heed the growth in online shopping and position their strategies for the future to incorporate new technologies that will enhance the online shopping experience, and create a different avenue to foster brand loyalty.
“This growth invites brands to explore new channels, audiences, and innovations, engaging with a market that is not only ready but eager for the digital shopping revolution. However, this evolving context also presents a challenge: brands will need to work harder to stand out,” Hassanie said.
The rise of shopping through social commerce
The report also attributes this growth to the rise of social commerce, driven by the increasing dominance of mobile shopping as the preferred method for online purchases.
In terms of mobile spending, both the UAE and Saudi Arabia see 32 per cent of their online shopping done via mobile devices. 87 per cent of consumers in the UAE within the age demographic of 16-24 shop through social media platforms, with Saudi consumers in the same demographic trailing behind by just one per cent.
“More people find products through social than through search engines, so getting your social customer journey nailed is paramount to ensure a seamless CX, and increasing your chances of conversion,” said Chloe Cox, Head of Social, VML EMEA.
The percentage of consumers who shop through social media platforms in the UAE and KSA trail behind China, the country that tops this list, by only 8 per cent and 9 per cent respectively.
‘Buy now, pay later’: A shopping fad for consumers in the UAE and KSA
The VML Future Shopper report states that the emergence of ‘buy now, pay later’ (BNPL) schemes has been a highly visible development as part of the shopper journey in the last few years.
76 per cent of Saudi Arabian consumers, the highest percentage globally, find BNPL services helpful. Meanwhile, 73 per cent of shoppers in the UAE are also adopting these flexible payment options, which emphasises a growing demand for convenient, interest-free ways to manage purchases.
The popularity of BNPL in both countries highlights a shift towards more flexible spending habits, supporting the rapid growth of online and mobile shopping in the region.
The report also touches upon the global pain points of consumers around the online shopping experience as a whole. 64 per cent of global consumers said they wished that brands and retailers would make the online shopping experience more entertaining.
Other findings include that consumers feel misunderstood by brands and retailers, leading to frustration and lost sales. Brands must invest in understanding customer needs, preferences, and pain points throughout their entire shopping journey.
The Future Shopper report highlights the UAE and Saudi Arabia’s pivotal markets in shaping the future of e-commerce, with their consumers driving trends in mobile shopping, social commerce, and flexible payment options.
As these markets continue to evolve, brands must adapt swiftly to meet the region’s demand for convenience, speed, and seamless digital experiences.
