DUBAI: Digital banking and payroll solution, NOW Money, has provided a view of how and where the 7.8 million migrants and essential workers in the UAE spend their money during Ramadan and Eid.
The NOW Money Ramadan and Eid Spend Report, which analysed hundreds of thousands of transactions, is the first of its kind to unveil the spending habits of this consumer group. The report gives retailers and businesses in the UAE an opportunity to plan how to maximise one of the busiest shopping times of the year, Ramadan and Eid.
Insight on spending behaviour.
Based on actual transaction data, the findings show substantial growth in the average spend per customer between the start of Ramadan and the end of Eid, 2021, compared to the average spend across the previous 11-months. Key findings have revealed:
- Significant increase in mobile and digital spend: Average spend per customer on digital goods increased by 92% during the Holy Month and Eid. People took to their mobiles to stay entertained by subscribing to gaming and online dating apps, and other apps available in the Google and Apple stores.
- People sought escapism in the cinema: The average spend per customer in cinemas increased by 110% from 59 AED to 123 AED. As many workplaces closed early during Ramadan and completely for Eid, people took advantage of the extra time off by catching a new release movie. People indulged in more luxurious cinema seating, popcorn, and candy than they usually would.
- Beauty goods were in demand: The biggest growth in average spend per customer was seen in cosmetics. Spend increased 138%, from 52 AED to 124 AED during the Holy Season. Customers may have treated themselves to a new look for their time off work, or stocked-up on products to keep their skin hydrated while fasting.
- Customers took advantage of sales: Average customer spend in sports stores increased by 35%, as customers took advantage of the sales these types of stores traditionally run during Ramadan and Eid.
- Spend on medical appointments and treatments soared: The average spend per customer on medical and dental treatments during the holiday grew by 55% as people took the opportunity of work leave to visit a professional and get nagging medical and dental problems treated.
- Gold, watches, and jewellery were sought-after gifts and investment opportunities: Jewellery, in particular gold, continues to be an important part of Holy Season spend as people seek gifts for loved ones or decide to save in the traditional form of gold. The average spend per customer on gold, watches and jewellery increased by 73% with single transactions up to the value of 6,000 AED. In Q1-2021, global jewellery demand recorded a sharp rise especially among budget conscious gold buyers. Worldwide, 340 tonnes of gold in the form of bars and coins were bought – and the best tally since the fourth quarter of 2016.
- Despite Covid-19 restrictions, booking travel was a high priority: Average customer spend on travel agencies and tour operators increased by 61%, from an average of 154 AED since Eid 2020 to the start of Ramadan 2021, to 248 AED during the Holy Month and Eid. Customers may have used the downtime as an opportunity to book travel to reunite with family and friends, or book excursions locally in the UAE.
Customers also made high transactions in home furnishing stores, electronic stores, and supermarkets and hypermarkets.
“Analysing the actual transactions made by essential workers has highlighted a huge opportunity for businesses seeking real spending power they may not have previously considered”, said Katharine Budd, co-founder of NOW Money, the GCC’s first digital payroll and banking solution for migrant and essential workers.
“The restriction of movement forced upon the world due to the Covid-19 pandemic has accelerated digital as consumers’ transaction channel of choice and this is no different for the migrant population in the UAE. The Holy Season is often one of the first and only times in the year migrant and essential workers have an opportunity to spend their hard-earned wages and bonuses on leisure and retail. These insights are invaluable for businesses operating in these verticals who are eager to capture valuable sales from this huge consumer group.”
In its first year, the NOW Money Ramadan and Eid Spend Report looks at the change in spending behaviour amongst essential workers in the UAE during the period of Ramadan and Eid, 2021.
© Press Release 2021
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