An eye on 2023 Ramadan shopping entourage  

Sally El Akkad, Director of Marketing and eCommerce at Electrolux Egypt

Yesterday my parents asked me the yearly classical question:” what would you like to eat on the 1st of Ramadan?” which opened a super yummy discussion full of food options, parents love, and family anticipated gathering vibes… Ramadan Kareem in advance to you folks! 

With Ramadan about to kick in, its beautiful blessing is surrounded by food supply chain speculations on the horizon, rocky economies, and global inflation! All elements join hands to escalate the challenge and further shape the relation between consumers and retailers. Despite it all, consumers are exuberantly returning to stores, ready to shop and buy! Afterall it is the holy month! We have rituals! 

Looking around social media groups, consumer responses show that the economy and inflation may be causing them to shop less, actively look for cost efficient alternatives, or even let go of some shopping items from their lists. In fact, 20% of those surveyed noted they would reduce retail spending and save for essentials based on the latest Oracle survey. Honestly, I believe that reflecting this to Egypt will show a much higher percentage. Essentially, big chunk of casual discussions nowadays is about the increase in household bills by almost 50% or even more , now the trip to store is so unpredictable from family budgeting stand point, leading to one of 2 options 

  • Decreasing basket size from a volume/ variety standpoint, in other words, Stick to necessities.
  • Absorb the financial pressure then complain about it later. 

Actually I was talking with a friend this morning, she was telling me about the dilemma of calculating the sweet/ right price for her restaurant this Ramadan since all cooking components had skyrocketed; she was wondering, “ do you think that consumers will have Iftar out of home this Ramadan or stick to the affordable alternative home meals and family/ friends dish parties” where her basic calculation per person is hitting the 500 EGP/person average without taxes. On the other hand, what does it mean for catering services and cooking startups! Can it be an opportunity in disguise, we shall see.. 

Back to our reflection on shopping instore, as per Retail Shopper Outlook: Consumer Research 2022, 68% of people still say they mostly shop in person and take purchases home (down 17% from 2019) … hope that the retailers around the world are ready for that! 

While consumers are still out shopping, the current economic factors impact their patience and pocket.  While bad customer service (39%) continues to be the #1 thing that would drive consumers to shop at another brand, inventory issues–from out-of-stock comes as 2nd reason why they would shop for another brand. 

What does that mean? Simply, they cannot wait!

Whether the reason is less retailer store trips, wanting to secure buying home necessities before spending the salary on unplanned stuff, fear of growing out of stock situation thus better to stock up basic commodities decision; anyhow, they have the upper hand! Thus, getting inventory correct can be a make or-break situation when it comes to consumer loyalty and staying power.

Inflation and shifting priorities mean that consumers are currently very conscious of price. While trying new, unique products and providing a stellar customer experience are nice-to-have, they are not what the majority is looking for, leading to a question… What does the majority is looking for then? 

  • Wallet-friendly prices and deals
  • BNPL shopping option; whereas per global research, A whopping 71% of shoppers would also consider financing plans –with 25% of those respondents having never used these programs before

 For retailers, this means using more sophisticated pricing strategies and technology to draw in buyers without losing margin on over discounting. Moreover, Consumers are loyal to retailers that provide variety and instant availability. These attributes will lead to an easy checkout experience or brand value alignment. So, what is the trick?! 

The trick is that not all categories of retail are created equal when it comes to what drives consumer loyalty! Simply you cannot compare the attributes of cosmetics category to sugar, rice and oil categories. Thus, brand value alignment and experience will massively differ! And with due honesty, this is where the right marketing can help retailers and brands to stimulate consumers demand.

So, how do consumers discover new offers, products, and brands? 

Digital channels continue to influence buying behavior, social media continues to play a larger role in 2023, where in 2022 it jumped to the top spot (21%) in how consumers find the most compelling offers and products from retailers. Interestingly, email closely followed at 19%, up from just 10% in 2021, and in-store promotions at 15% (still a top contender, but down from 23% in 2021) 

Thus, it is a no-brainer that companies will do more budget shifts to cater digital channel growth to stretch more muscles of reaching consumers in an efficient manner.

Therefore, while everyone is gearing up for Ramadan, we are really crossing fingers for a dynamic robust season!  The shoppers are back in stores while the looming economy is putting a pressure on all involved parties. And this how ladies and gentlemen we will enjoy this Ramadan; seeing how consumers-retailers-brands triangle will be shaping the future of shopping and defining its priorities! 

And to the article question, my mum will cook my favorite Lamb thigh and Zucchini Mahshi 😊 … Ramadan Kareem to you and your families!