Saudi market at the forefront of digital transformation
Saudi Arabia is leading consumer trends in the region, says Bain & Company Middle East partner
Woman holding credit card while using mobile phone for online shopping on table. Image used for illustrative purpose.
By Deema Al-Khudair, Arab News
Saudi Arabia - The coronavirus pandemic has taken the world to a whole other level of digitalization and the youth are the driving force behind the ongoing digital transformation, said Anne-Laure Malauzat, partner at Bain and Company Middle East.
Talking on the sidelines of the Future Investment Initiative Forum in Riyadh on Tuesday, she said Saudi Arabia is one of the leading countries in terms of contactless payments and other innovative solutions.
“We’ve seen the Kingdom lead in a number of things, the first one, for example, is everything that has to do with social media penetration. The Kingdom is known to have some of the highest social media utilization in the world,” Malauzat told Arab News.
She said YouTube utilization in Saudi Arabia is also one of the highest in the world. “With over 85 percent of people who have access to YouTube and watch YouTube on a regular basis, which is quite high,” she said.
Malauzat also pointed out that the region is also leading the way in terms of millennial and younger customers that are dictating change in market behavior and consumption pattern.
She said that people in the Kingdom no longer want to spend time in making payments. “They want seamlessness and convenience and if it’s not convenient they might actually drop the purchase that’s how demanding our consumers are here,” she said.
The entrepreneur said the coronavirus pandemic has changed several things in the world and has forced companies rethink their strategies to deal with the changed environment focussed on digitalization.
“The main question we kept asking ourselves is we’re seeing the world changed especially in the last two years with the COVID-19 pandemic and we were wondering whether the change in the region was going to be different than around the world. What we found is actually there are quite a lot of similarities between the global and regional trends,” she said.
“We thought we were digital before COVID-19 now it’s a whole other level of digitalization,” Malauzat said.
“For example, we’ve seen that in Saudi Arabia, there are over 90 percent of people who said that they started shopping online more frequently following the COVID-19 pandemic and over 50 percent of those people said they would stick to their behaviors even after the pandemic.”
She said what happened was a structural change in how people purchase and shop.
Another example that occurred mainly due to the pandemic, she added, is that more people have started giving preference to their local products.
“People were traveling less due to the pandemic so they spend more and more money locally and as a result the local offerings have grown; there has been a growth in local brands in different sectors whether it’s food or fashion. We’ve seen a rise of the local supply to meet the growing demand,” she said.
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