Changes in Consumers Spending Habits March Saudi Arabia
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1 MARKETING RESEARCH COMPANY Changes in Consumers Spending Habits March T h e R e s u l t s -
2 THE DEMOGRAPHICS Sample Size: 450 %80 Between 25 and 44 Years Old %95 Married 50% 50% Riyadh Saudis Nationality Arabs Jeddah OTHERS Makkaah Madinah Al Taief Yunboa Baha Al Leth Khamees Abha Eastern Province Al Qassim Tabouk Family Size 60% 2 to 4 members 35% 5 to 8 members
3 During 2017, 84% of the surveyed sample have changed their spending habits Out of them, 64% admit to cut their expenses to some level The majority of this segment are Saudis and from Jeddah For 2018, 70% of the surveyed sample expect to cut their spending. Out of which 59% are Saudis and 41% are Expat Arabs
4 Those who cut their grocery spending, how did they do it? 44% Searching for discounts and promotional offers 38.5% Cutting down the quantities purchased 29% Switching to cheaper brands 17% Changing POS (switching to wholesales)
5 A SIGNIFICANT IMPACT across most categories Impact per category If you would like to get detailed feedback by nationality or city, feel free to contact Steady Pace 53% 59% 45.5% 27% 23.5% 25% 26% 21% 23% 22% 22% 23% 21% 54% 60% 60% 61% 62% 62% 62% 64.5% 65% 67% 24% Least Impacted categories 26% 37.5% 23% 15% 17.5% 19% 16.5% 15% 13% 17% 15% 16% 13.5% 12% 12% Main Food Items Cleaning Personal Care Beverages and CSDs Confectionery and Snacks Clothes Outing, Entertaining Activities Restaurants, Fast Food Travelling Electronics & Electrical Appliances Makeup Furniture Bags, Shoes and Accessories Increase Decrease No change
6 25% Low Loyalty Across all brands 2.5% High Loyalty Across all brands
7 8.5% Highest Loyalty 24% 27% 16% 24.5% Lowest Loyalty 15% 13% 2% 7% 8% 8% 8% 9% 6% 3% 2.5% 4% 2.5% 3% 0% 1.5% 3% 1.5% 2% 1.4% 2% 0% 1.5% Canned Food (Inc. Tuna & Cream) Rice, Pasta, Sugar Dairy, Cheese Cleaning Oil, Ghee, Butter Frozen Food (vegetables, Chicken Meat..) Powder Milk Juices, CSDs Taste Enhancers (Tomato Paste, Chicken Cubes, Salt) Tea, Coffee, Water Paper & Plastic Chocolate, Chips Personal Care Eggs, Flour Low Loyalty (Promotion driven Categories) Hight Loyalty (Categories consumers won t compromise on)
8 Highest Loyalty was given to Dairy, Cheese products whereas Canned Food was the category with the lowest loyalty score NAMES LINKED WITH HIGH LOYALTY 8.5% 24% 27% 16% 24.5% 15% 13% 2% 7% 8% 8% 8% 9% 6% 3% 2.5% 4% 2.5% 3% 0% 1.5% 3% 1.5% 2% 1.4% 2% 0% 1.5% Canned Food (Inc. Tuna & Cream) Rice, Pasta, Sugar Dairy, Cheese Cleaning Oil, Ghee, Butter Frozen Food (vegetables, Chicken Meat..) Powder Milk Juices, CSDs Taste Enhancers (Tomato Paste, Chicken Cubes, Salt) Tea, Coffee, Water Paper & Plastic Chocolate, Chips Personal Care Eggs, Flour Low Loyalty (Promotion driven Categories) Hight Loyalty (Categories consumers won t compromise on)
9 Many consumers admit to cut their consumption drastically of certain categories. But never stopped completely consuming a category. 8.5% 24.5% Canned Food (Inc. Tuna & Cream) 24% 27% 15% Rice, Pasta, Sugar 13% Dairy, Cheese CATEGORIES THAT ARE CLAIMED TO SUFFER THE MOST INCLUDE: 2% 7% 16% 8% 8% 8% Cleaning Oil, Ghee, Butter Frozen Food (vegetables, Chicken Meat..) Confectionery Ice Cream Chips 9% Energy Drinks 6% Fast Food 3% 2.5% 4% 2.5% 3% 0% 1.5% 3% 1.5% 2% 1.4% 2% 0% 1.5% Powder Milk Juices, CSDs Taste Enhancers (Tomato Paste, Chicken Cubes, Salt) Imported Tea, Coffee, Water Paper & Plastic Chocolate, Chips Personal Care Eggs, Flour Low Loyalty (Promotion driven Categories) Hight Loyalty (Categories consumers won t compromise on)
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