Breaking Ground in the MENA Market

In recent years, the Middle East & North Africa region has become an e-commerce powerhouse, steadily growing in economic significance year on year. The World Bank expects economic growth in the Middle East and North Africa to continue at a modest pace of about 1.5 to 3.5 percent during 2019-2021, while some slowdown is expected due to the pandemic, ecommerce has exploded in a surge of sales. People are forced to flock to online platforms due to the closure of physical shops. In June 2020, retail e-commerce website traffic worldwide recorded more than 21.9 billion monthly visits compared to 16.2 billion in June 2019.

In this oasis of e-commerce, there is one time period that shines out from the rest. Ramadan is of vast cultural and spiritual importance to the population of this region, and its effect on buying trends and spending habits cannot be understated. 60% of people reportedly spend more during Ramadan, and as many as 57% of people save throughout the year to splurge during the festivities. Retailers can maximise their sales through this period, by preparing for Ramadan 2022, anticipate the demand by preparing now, find out how below.

Gift Wrapped from the UK

The UK is a consumer’s haven, and those outside its borders lust after the incredible, prestigious goods within. To be bought from the UK is a mark of opulence, and UK retailers must recognise this to take advantage of the opportunity to increase their reach to this prosperous land.

British businesses that have identified the vast importance this market has and the growth that is expected in the coming years should be well placed to take their sales to the next level. For example, some UK e-commerce merchants have reported a 20% growth in retail sales in 2020, which they have accounted to strong sales in the MENA region. This shift towards shopping online isn't expected to slow down any time soon, 47% of consumers in the region say they expect to shop online more frequently in 2021 and only 15% expect their online shopping frequency to decline.

The chance for UK online retailers to extend their range is huge, and by appreciating the cultural significance of Ramadan, they have an opportunity to penetrate this market and establish a market share. There is 11 months before the start of Ramadan 2022, set this target to aim for to break ground in the MENA region.

Predicting the Spike in Sales for 2022

Every year, Ramadan causes a huge market swell in e-commerce, upwards of 35% for some markets. UK retailers would put themselves in a good position to take advantage of this increase next year by understanding the buying behaviour of this region, who have upwards of $2bn burning a hole in their pocket.

This includes the increased shift to digital channels for marketing. In the holy month, mobile search is a particularly attractive chance for brands to serve consumer needs. During Ramadan 2015, searches on mobile represented more than 60% of total queries. This is approximately 5% higher than the average mobile share in other months – an increase that translates into millions more searches during the Ramadan period.

To make use of this opportunity, UK retailers must gather insight well before the start of Ramadan to purchase stock and initiate marketing campaigns. The preparation for this spike in sales must also come with planning for the logistics of such an endeavour. Transporting consumer goods across the planet can come with difficulties, such as border and customs problems, currency and language barriers. In addition, setting up to operate within this region also has certain teething problems which dissipate after a few years in business once infrastructure has been put in place. Partnering with a local logistics carrier would negate this somewhat and fast-track a UK retailer’s preparation for Ramadan, setting them up for success.

To encourage this ecommerce boom from the UK to the MENA region, the benefit of partnering with logistic carriers with MENA expertise allows some UK retailers to offer free shipping to customers in the MENA region. As some carriers can offer excellent deals as they have existing infrastructure in place and a network of contacts. Offering free shipping can incentivise these purchases which will give the customer no reason to visit the physical shops instead.

UK online retailers must prepare for this period in the MENA region, the opportunity to establish market share with increased sales throughout Ramadan would be an excellent strategic decision. Start planning for 2022 now and set your business up for success with Aramex as your key logistics partner.