There is a shift in consumer behaviour in the Kingdom of Saudi Arabia, as an increasing number of consumers embrace digital technologies rapidly. The widespread use of smartphones, ease of online shopping and rise in e-commerce platforms have led to a more aware and discerning consumer base that relies on research and reviews and places greater emphasis on brands they trust before making an informed choice.
The rise of the tech-powered buyer in Saudi Arabia has been reiterated in the Middle East findings of the Global Pulse 6 survey where 62% of Saudi consumers have revealed they would like to be the first to buy cutting-edge technology as soon as it is available and try out the latest technology before most people - a trend is significantly higher than 48% of the global respondents.
Empowered by the latest technology, more than 40% of the surveyed consumers in Saudi agreed to have frequently researched products online, using their phones in-store to compare products, look for competitive prices, and determine if they are cheaper on the website or with an alternative retailer. They also use retailers’ apps on their mobile to compare products and use social media to view live or visual reviews before purchasing. We find this awareness has been pronounced in KSA (58%), where consumers research products online, looking for product reviews before making a purchase.
19% of the surveyed consumers in Saudi use search engines to research items, ranking it as the top way of researching products, while 15% use Amazon.
Product research via retailers' sites and family and friends networks was preferred by 14% of respondents in KSA, higher than the other countries surveyed. Ads linking directly to offers and promotions and sponsored social media ads were among the most preferred advertisement models in the KSA, with 25% of respondents voting for it.
Which types of advertisements do you find most influential in making a purchase decision?
In-store shopping preferred and self-checkouts are gaining a foothold despite a rise in online buying
Our survey results have revealed that 46% of respondents in Saudi have preferred in-store visits for frequent shopping in the last 12 months, while a close 36% prefer to shop online via mobile phone and 25% via personal computers. Our survey has revealed that more than 51 % of Saudi consumers (vs. 53% regionally) prefer using self-checkout in a physical store because it has a greater variety of payment options. 49% of Saudi consumers use it as it has a faster and more responsive touch screen.
Brand websites are trusted
Saudi consumers value authenticity, reliability and trustworthiness when making purchasing decisions. Brand’s websites were key to 65% of survey participants, who directly purchased products from the brand’s website vs 63% of their global peers.
Thinking of products that you buy, have you ever purchased or considered purchasing them directly from the brand’s website?
More than half of the Saudi respondents have purchased food, beverages, clothes and accessories directly from the brand’s website, while more than 40% have purchased electronics, beauty and personal care products. Ensuring the authenticity of products is a key reason why 23% of Saudi consumers (compared to 24% globally) have purchased products directly from the brand’s website, while 21% (vs. 19% globally) preferred to visit websites for more competitive prices.
Willingness to pay more for bespoke products and local produce
As conscious consumption trends emerge in Saudi Arabia, buyers are embracing sustainable local produce. More than 20% of Saudi consumers would be willing to pay 11 -20 % above the average price for bespoke products and those produced locally, highlighting their commitment to sustainability in keeping with the national agenda.
Strong preference for subscriptions
Our survey reveals that 20% of Saudil consumers (vs 17% globally) subscribe to household grocery delivery services like fruit and vegetable boxes and meal kits. Cosmetics, cleaning supplies and clothing services are products and services that 18% of Saudi consumers currently buy using subscription services.
For 54% of Saudi consumers, subscriptions meant better cost savings, while more than 40% said it is convenient and enables them to try before buying, and maintain a consistent lifestyle routine.
42% of Saudi consumers (compared to 39% globally) cancelled subscriptions in the past because they no longer needed the product. More than 30% cancelled, as they found it expensive, not suitable to their lifestyle, product quality was inconsistent, and fees were unexpectedly increasing.
Future trends
Instore vs Online: A best of both worlds
Aligned to the wider region, where consumers prefer the convenience of buying online with the confidence of buying in-store, 63% of Saudi consumers intended to boost their online spending significantly higher than the 31% who intend to continue shopping in physical stores over the next six months.
Essentials will remain a priority, a cautious approach for luxury purchases
Consumers were more willing to spend on essentials, with 50% of the regional and global survey participants ready to spend more on groceries, while 45% would spend on fashion and 43% on consumer electronics. Around 33% of respondents said they will decrease spending on luxury products, and home entertainment.
Hands on the latest tech products
In keeping with the overall keenness on emerging technologies, 16% of our survey consumers in Saudi have used virtual reality (VR) to play games or watch a movie or TV show, while 13% have used it to access virtual online healthcare, and 12% to interact with a brand they already know.
Saudi consumers are also showing greater interest in chatbots (52% vs 44% globally), keen to use them for product information. Like their regional peers, more than 40% are interested in other chatbot functions like retailer customer service and customised offers.
Bigger spend on travel: experiences count for the Middle Eastern consumer
The Pulse 6 survey reveals that 70% of survey participants from Saudi (vs 44% globally) are likely to travel on an international flight, 68% (vs 54% globally) to a new destination and are more likely to take domestic flights (66% vs 47% globally). Also, they are more likely to take less frequent but longer journeys (48% vs 33% globally), as well as short trips for frequent getaways (56% vs 48% globally). Key drivers for travel include immersion in local culture and food (51%), experiencing a dream holiday (44%) and dining at top-end restaurants (41%).
Conclusion
To adapt to evolving consumer preferences, retail companies must remain competitive, offering advanced digital platforms, mobile applications, and attractive e-commerce solutions. This will help retailers attract a wider consumer base, especially younger consumers who are likely to enjoy the convenience and flexibility of online shopping over traditional brick-and-mortar experiences. Retailers must also maximise the impact of their social channels, showcasing customer reviews that demonstrate their brand authenticity and value to consumers. New experiences, such as attractive phygital stores, interactions with innovative chatbots for product information and a more profound immersive shopping experience would be top draws for the new tech-powered consumer.
