Tackling the MENA Market - Advice for Retailers

Ramadan, and subsequently Eid, is a festival that celebrates giving. It’s a time where retailers have an opportunity to maximise their sales by appealing to the participants of the celebration. By neglecting Ramadan, UK retailers are missing out on millions of pounds of revenue with e-commerce website traffic rising by 35% during this time.

1.8 billion people celebrate Ramadan with 450 million living in the MENA region. When retailers discount the MENA region, they’re turning their back on a GDP of $4 trillion. So, how do retailers get a piece of the action? Below is our advice for tackling this rapidly growing, lucrative market.

Penetrating Ramadan

Sales during Ramadan are enormous as offers and promotions enhance the celebration for many. One of the best-selling goods are electronics where this sector sees an increase of 20% during Ramadan. Apparel is another product which is vastly sought after during the celebration, with annual spending expected to top $368 billion in 2021.

The amount of shopping does not the only rise during Ramadan, the entire culture of shopping changes with people browsing e-commerce and social media sites in the late evening and early morning rather than the traditional peak times. Facebook grows by hours viewed by 57 million hours and has a peak time of 3 am during Ramadan.

To obtain a market share in this commerce paradise, during one of the highest spending periods of the year, consider utilising consumer knowledge and market research into where your business is best positioned. An example would be, for a business selling luxury clothes, seek out consumers spending on this and look for how to target them through where they find their goods. Position your business on their social media sites and offer promotions and benefits such as free delivery.

Delivering into the Unknown

Once a UK retailer has penetrated this market, the next step is to understand the logistics of servicing this region. The MENA region is over 4,000 miles away from London and is a highly contrasting environment to the UK. This means that delivering goods to countries in this region comes with unique challenges that must be overcome. These include:

• Strict regulatory compliance in border checks and customs procedures, including costs to bear for crossing borders.
• Language and culture barriers.
• Currency and transactional differences.
• Climate conditions and extreme temperatures.
• Logistics operation considerations e.g.: local distribution facilities

Understanding the complex nuances and the different ways of working in the MENA region is of vast importance. Retailers from the UK can bypass this intense market research stage by partnering with a logistic firm with deep rooted relationships in this region with existing infrastructure in place. Our team is standing by to assist you at every step of the way. We can give you crucial advice and important insight to help UK retailers take advantage of the MENA region, especially during the highly lucrative commerce period of Ramadan.

To work with a MENA logistics expert, get in touch with our team. We look forward to helping you set-up to maximise your reach in time for the next Ramadan.