Drawing upon regional retail gross sales knowledge from 2022’s Ramadan Criteo has launched a brand new report providing manufacturers recommendation on tips on how to benefit from commerce alternatives in the course of the upcoming Ramadan season amid inflation.
“Having simply exited the pandemic this yr, customers are excited to renew their each day actions and return to previous methods of celebrating festivals with their households and buddies,” mentioned Criteo, including that “inflation and the rising price of dwelling are impacting shopper conduct.”
In response to Criteo, primarily based on retail knowledge from final yr’s Ramadan, it was discovered that preliminary on-line gross sales in Southeast Asia noticed a 19% improve in early April 2022 in comparison with the final two weeks of March 2022.
Gross sales figures continued rising throughout Ramadan till roughly one week earlier than Eid throughout markets within the area:
- Indonesia skilled the sharpest improve at 74% on April 20.
- Indonesia noticed rising gross sales which started round March 23, indicating that Indonesians may need been procuring to organize for Ramadan. Indonesia noticed a spike of 68% every week earlier than Eid and Malaysia had a 35% improve 6 days earlier than Eid in retail gross sales.
- Malaysia witnessed two peaks on 4 April (Double Day sale) and 22 April respectively.
Singapore customers continued with their traditional procuring habits, suggesting that their retail habits remained largely unchanged even throughout Ramadan.
Attire & Equipment was the top-performing product class and noticed a 30% improve in gross sales throughout Ramadan. Different product classes that carried out nicely had been Well being & Magnificence, Dwelling & Backyard, and Electronics which all noticed an 18% improve in retail gross sales proper earlier than Eid.
Moreover, says Criteo, journey gross sales noticed a common improve and peaked (+44%) 4 days earlier than Eid celebrations. This may be anticipated as individuals need to collect with their household and buddies for the celebration.
The month of Ramadan additionally noticed a change within the patterns of on-line procuring, particularly in Indonesia and Malaysia.
- On-line gross sales at evening noticed a common optimistic pattern that begins from 19:00 (Indonesia), 20:00 (Malaysia) and continued until the morning.
- On-line procuring earlier than daybreak 04:00 – 05:00 (Indonesia), 05:00 – 06:00 (Malaysia) noticed the very best change throughout Ramadan as in comparison with the conventional days’ efficiency (March 1 – 30).
- Decreased gross sales occasions throughout iftar (breaking of quick) 18:00 – 19:00 (Indonesia), greater than common days (No Ramadan)
- 12:00 – 13:00 in each nations stands out as an anomaly with the very best variety of gross sales in the course of the day. Shoppers had been procuring extra as they had been fasting in the course of the lunch hour.
“With inflation being on the forefront of the thoughts of customers coupled with the change in shopper behaviour throughout Ramadan, it is important for entrepreneurs to rethink their promoting methods with the intention to maximise their outreach throughout numerous platforms,” mentioned Taranjeet Singh, Criteo’s Managing Director for South APAC.
“Final yr’s knowledge revealed a change within the patterns of on-line procuring throughout Ramadan, with a rise in on-line gross sales at evening and earlier than daybreak. Entrepreneurs ought to pay attention to these developments and be sure that their promoting methods are tailor-made to the particular instances when customers are most lively on-line.”
Rising shopper traction
Transferring into Ramadan 2023, it is important that manufacturers perceive the psyche of the consumers to enhance traction in the course of the coming Ramadan and Eid interval.
Criteo has launched three suggestions for retailers for Ramadan 2023:
- Rise of commerce media – Commerce media is being positioned because the 4th wave of digital promoting and has the ability to succeed in and have interaction customers the place they’re actively searching and shopping for. In response to Criteo’s Rise of Savvy Shopper Examine, 71% of world consumers are spending extra time on-line to seek for the perfect affords and values earlier than making a purchase order. As shoppable moments can occur in practically any setting, rising environments similar to retail media will proceed gaining traction in 2023. Savvy retailers know that they might want to proceed increasing their media choices to personal their end-to-end buyer journey, and entrepreneurs will hold investing in retail media as a result of it really works.
- Understanding the optimum timings – Consumers are nonetheless discovering methods to purchase what they love, no matter inflation. Shoppers are spending extra on non-negotiables like mortgages or meals and developed extra forward-thinking mindset that speed up some purchases, similar to shopping for important objects in bulk to get extra worth for his or her cash. On the identical time, a majority are nonetheless buying the products and experiences they need most. 74% of customers globally say they’re spending the identical or extra on private care/well being and wonder merchandise, adopted by attire and equipment (65%), shopper electronics (63%). Entrepreneurs ought to pay attention to the change within the sample of on-line procuring throughout Ramadan, particularly the very important hours the place gross sales typically improve to faucet into the spending habits of customers.
- Incorporating high quality and loyalty applications – Regardless of saving cash being high of thoughts, customers imagine that offers mustn’t come on the expense of high quality.91% of world customers selected product high quality as the most important issue influencing buy selections, forward of free transport (90%) and reductions and coupons (84%). In addition they worth the alignment with model values similar to eco-friendliness and loyalty applications. Entrepreneurs can faucet on this by making certain that their merchandise are top-notch and creating loyalty applications that encourage customers to proceed buying from them.
Featured picture by Porapak Apichodilok
