In Saudi Arabia, a fascinating shift is under way in consumer behaviour as the country experiences rapid development and transformation. To better understand consumer trends in Saudi Arabia, Google conducted research in partnership with Ipsos and performed an internal analysis. The findings were presented at Google’s Accelerate Saudi event earlier this year.
Time: the rise of leisure
In recent years, we’ve observed a consistent trend of more time being dedicated for leisure activities in Saudi, especially as more entertainment options are opening within the Kingdom from Riyadh Season to new sports venues, as well as large events like the Esports World Cup. This shift isn’t just happening offline; it’s mirrored in online behaviour.
We call this the ‘companion effect’ – how offline interests influence online browsing and viewing habits. Let’s explore some examples:
Sports enthusiasts: They turn to YouTube for online tutorials, workout routines, equipment reviews, and even explanations of sport rules and terminology. Their passion for sports fuels their online exploration.
Gamers: The most popular content for gamers on YouTube includes gameplay reviews and trailers, with walkthroughs – guides to improve gameplay – also being highly sought after. Their love for gaming drives their online consumption.
Online shoppers: Even those shopping online use YouTube and Google to research. They explore new brands and products, check sizing guides, and gather inspiration. Their desire for the best shopping experience translates into active online engagement.
These examples show that people’s offline passions are intrinsically linked to their online activities. This presents a unique opportunity to connect with your audience in a more meaningful and impactful way.
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Wallet: balancing priorities in an inflationary environment
While groceries and housing have the highest share of wallet in Saudi, discretionary spending is being affected by inflation and evolving priorities. Interestingly, categories such as entertainment and fashion see a duality.
Approximately 40 per cent of those planning to increase spending in these two categories are doing so because of the expanding array of entertainment options available in Saudi. The vibrant energy in Saudi Arabia – with events such as Riyadh Season and new malls and restaurants – is fuelling this trend.
On the other hand, entertainment and fashion also see the highest intent to decrease spending, with 20 per cent of respondents aiming to cut back. Inflation is a top concern, driving 57 per cent of those reducing spending in entertainment and fashion. We found that 92 per cent of survey respondents are adapting their spends due to inflation by:
Hunting for sales: The most common response to inflation is actively seeking discounts and deals.
Categorising spending: Consumers are distinguishing between essential and non-essential purchases. Notably, 40 per cent will wait for sales on homecare products, showcasing a savvy approach to budgeting.
Delayed gratification: Around 72 per cent of respondents save up for purchases, further emphasising the trend of mindful spending. Interestingly, locals are more likely than expats to treat themselves to on-the-spot purchases.
Moments: capitalising on peak shopping periods in a changing landscape
Being present at the right moment is crucial. Saudi Arabia is seeing the emergence of new peak shopping periods – such as Saudi National Day, Singles’ Day, Black Friday, and end-of-year – in addition to traditional ones like Ramadan and Eid. These moments are now key shopping occasions across various industries.
We’ve been tracking the rapid growth of Saudi National Day as a major shopping event. Our research shows it’s a highly anticipated occasion, with Saudi National Day-related search interest growing significantly.
However, November still holds the crown as the peak shopping season, with Singles’ Day, Black Friday, and the end-of-year holidays driving substantial consumer spending. The end-of-year period also sees a surge in retail and discount-related searches.
This year’s peak moments have been particularly interesting, with the emergence of new global players in the region. In 2022, global apps (companies with limited office presence in the country) accounted for 17 per cent of top shopping app downloads in Saudi Arabia, mainly led by Shein. With the arrival of Temu and Trendyol, that share jumped to 65 per cent in 2023, as found within data.ai reports.
As part of their expansion, these global players are heavily investing in key consumer moments. We see interest in search queries for these brands peaking during events such as Black Friday, Singles’ Day and Ramadan.
Marketing for evolving consumers in the AI era
The marketing landscape is evolving at an unprecedented pace. This is driven by rapid advancements in artificial intelligence (AI) – these five tips can help:
AI-powered marketing campaigns: Being a marketer in the age of AI means there’s no need to look that deep into the nuances of your data, AI powered marketing campaigns can cater for the nuances in consumer behaviour based on millions of signals.
Leveraging AI for insight generation: As a marketer in today’s AI era, generating insights has never been easier. With tools such as NotebookLM, you can upload research papers, documents and videos and have a conversation with your data simplifying the insight generation process. This is a tool that I’ve been using frequently.
Tailoring messaging: As consumer trends change, it’s become increasingly difficult to generalise messaging. With recent AI advancements, we are now able to deliver personalisation at scale in a cost-effective way.
Targeting peak moments: Although many plans and budgets for peak moments are set at the start of the year, consumer behaviour continues to shift. In Saudi there are several growing peak moments that offer an opportunity to be present and boost sales.
Adapting to global competition: As Saudi Arabia witnesses growth, it attracts global companies to invest and increase their marketing. Using AI tools, innovating, and clearly communicating a brand’s value proposition is more vital than ever.
By understanding evolving consumer trends in Saudi and leveraging the power of AI, we can effectively connect with our audience and thrive in this dynamic market.
By Basel Hijazi, Marketing Lead, Saudi & Retail, Google – MENA
