As we enter the fourth quarter of 2022, we are most interested in the economic and commercial changes that the energy crisis sweeping half the world is bringing to countries. The Kingdom of Saudi Arabia, known for its "veil of secrecy", is also undergoing a radical change in traditional Saudi society and consumer trends, driven by Vision 2030.
Now, let's take a look at the recent consumer trends and shifts in Saudi Arabia, and predict what opportunities there are for the year-end peak season in the Saudi market.
'Richest' title stands, spending power still online
Saudi grows amidst headwinds as the global economy as a whole shows a downturn
The IMF estimates that Saudi Arabia's economic growth rate is expected to be as high as 7.6% in 2022, thanks to the order-shifting effect of the EU's reduced energy dependence on Russia. Saudi Arabia's GDP per capita is also expected to rise sharply from US$23,500 in 2021 to around US$28,000 in 2022. on 31 October, Saudi Arabia also reported an 8.6% year-on-year rise in preliminary GDP for the third quarter.
More sensible spending in an inflationary environment
把柄Twitter 中东和北非权衡精雅人Walid Issa暗示，“Twitter2022年趋势报告发现，沙特阿拉伯的用户愈加自愿地勤俭破费。在高通胀期间，勤俭是重生存的绚丽。”在2022年ASDA'A BCW阿拉伯后生造访中也披露，影响他们下单的关节性要素是：质料、扣头和免费送货。
Consumer prices in Saudi Arabia rose by 3% in August as local food and transport costs rose amid global inflation. "No more money, no more spending" Saudi consumers are spending more sensibly.
According to Walid Issa, head of research for the Middle East and North Africa at Twitter, "The Twitter 2022 Trends report found that users in Saudi Arabia are becoming more conscious of their frugal spending. In an era of hyperinflation, frugality is a sign of a new life." The ASDA'A BCW Arab Youth Survey 2022 also revealed that the key factors influencing their orders are: quality, discounts and free shipping.
Also, the Twitter Trends report shares the tendency of Saudi consumers to shop online during White Friday by platform and category of goods.
The trend towards modern consumerism is gaining momentum
If you know social media marketing, you can win the attention of the Saudi people
沙特的互联网隐敝率相等高，驱散2022上半年，沙特的互联网用户约为3500万，互联网浸透率达到98%。当今，通过直播和短视频销售跟客户粘度越发彰着，沙特也不例外，把柄D2C出海营销数据，沙特外交用户数目已达 2,930 万，占总生齿的 82.3%。
According to relevant data, basically everyone in Saudi is an internet user, and almost everyone uses social networking platforms.
Saudi has a very high Internet coverage, as of the first half of 2022, Saudi Arabia's Internet users are about 35 million, Internet penetration rate reached 98%. Now, the viscosity with customers through live and short video sales is becoming more and more obvious, and Saudi is no exception. According to D2C outbound marketing data, the number of social users in Saudi Arabia has reached 29.3 million, accounting for 82.3% of the total population.
Of course, the 'cultural red line' of policy, religion and beliefs must be adhered to in all cases.
Acceptance on the rise, encouraging coexistence of foreign cultures
As we all know, Saudi Arabia is a predominantly Islamic country and its participation in international festivals can only be described as 'join in the fun'. But with Vision 2030, Saudi society is becoming more open and inclusive.
Since 2021, Halloween has been the first pagan holiday to be celebrated publicly in Saudi Arabia. According to Google search, the search trend for "Halloween" has increased by 40% year-on-year in 2021. According to the New York Times media, Halloween decorations and pumpkins are everywhere in malls and supermarkets this year.
Digital payments are the "new common condition" for Saudi spending
沙特支付公司Mada和Visa发布了一项对于大流行对沙特破费者支付行为的影响的造访，恶果披露，当他们在商店购物时，77%的人使用数字支付而不是现款，其中大多量使用非构兵式卡 (56%) 和迁徙钱包 (60%)。对于心爱网购的受访者，62%的受访者暗示我方使用卡或数字钱包进行货到付款。即使是在疫情事后，如故超一半破费者遴荐使用非构兵式支付。
Saudi payments companies Mada and Visa have released the results of a survey on the impact of the pandemic on Saudi consumers' payment behaviour, showing that 77% of people use digital payments rather than cash, with the majority using contactless cards (56%) and mobile wallets (60%). For respondents who prefer to shop online, 62% said they use a card or digital wallet for cash on delivery. Even after the outbreak, more than half of consumers still choose to use contactless payments.
Strong growth in the travel and hospitality sector
Vision 2030's main objective is to diversify the Saudi economy and tourism is a key part of this. In recent years, Saudi Arabia has continued to develop its tourist attractions and facilities, enriching its cultural and entertainment offerings and launching mega-tourism projects including Red Sea tourism, the ancient city of Eura and Niyom tourism.
The United Nations World Tourism Organization recently released a report showing that in July this year, Saudi Arabia attracted 121% more inbound international tourists than in July 2019, making it one of the fastest recovering countries in the world's major economies in terms of tourism. With the international tournament Qatar World Cup coming up again at the end of this year, the benefits of tourism and hotel business from Saudi Arabia, one of the best countries to watch the tournament in the vicinity, can be imagined.