Emerging Trends Shaping the Future of Brands in Saudi Arabia
Posted on 2021 Feb,21

The strength and influence of Saudi Arabia's economy in the world marketplace has grown exponentially during the past few decades. As one of the world’s fastest growing markets, the Kingdom is putting the best foot forward in globalisation.

According to a 14-market study conducted by Ipsos and Facebook IQ focusing on consumer trends and habits in emerging markets, 82% of consumers in Saudi Arabia agree that more brands and businesses from Saudi Arabia are becoming well known around the world. In the study titled “Emerging Trends: The Forces Shaping the Future Today”, 67% of the consumers also opine that Saudi Arabia is now more connected to the rest of the world than ever before.

Amid the COVID-19 lockdowns, people have been turning to social media to stay connected. Whether it is to shop online, discover new brands or simply join online communities, there is increased social media usage to maintain social activity, especially when coming together face-to-face has become restricted.

According to the study, 63% of consumers surveyed are also increasingly showing interest in joining online communities in the Kingdom, with 70% among those surveyed in KSA members of an online community. While Instagram is more likely to be used for communities on Food, Drinks (47%) and Fashion (48%), Facebook is more likely to be used for gaming (39%). One example of how brands have capitalised on community engagement is Nestlé Middle East. The food and beverage giant created a bot for Messenger that kept its brands at the top of people’s minds during Ramadan and resulted in people spending 2.9X more time on its Nestlé website compared to other campaigns. By suggesting helpful products and supplying useful information, the bot could keep Nestlé and its brands in people’s daily conversations.

Ramez Shehadi, Managing Director for MENA at Facebook said: "Social media platforms such as Facebook and Instagram are proving to be essential growth drivers for local brands both in and from Saudi Arabia. As we can see in the Ipsos and Facebook IQ research, people are on the hunt for new ways to reclaim their time, find joy in online shopping, interact with brands that have purpose, and participate in global and local communities that share interests and passions, all through a variety of emerging technologies. Consumers are readily and rapidly embracing change, and brands can build stronger connections by developing innovative and meaningful digital experiences.”

The demand for convenience

90% of consumers in the Kingdom are actively looking for ways to simplify their lives. These Convenience Seekers are looking for ways to do the things that actually matter to them - and whether that’s being together with loved ones (44%), getting fit (51%), learning new skills for a new career (54%) or giving back to their community (25%), time is the most valuable currency on the journey to personal.

Digitised immersive experiences are most sought-after

Saudi consumers are also demanding a new kind of relationship with brands. Among those surveyed, 87% said social media has allowed them to interact more and deepen their relationship with brands, with 84% being open to trying new and different ways of shopping.

At the forefront of this is Live Shopping as well as Augmented Reality. Live shopping, or live stream shopping that has digitized the home shopping experience via social media, apps, and websites, by providing a real-time feedback loop for buyers, including reviews and recommendations of products, is also gaining immense popularity among Saudi consumers. Nearly half of the consumers surveyed (48%) say their Live Shopping has increased over the past year with key categories such as Luxury fashion, Auto accessories, Sport equipment and Travel accessories being the most popular.

Among people surveyed in Saudi Arabia, 88% have used an augmented reality feature in the past year and 78% saying it is a fun way to interact with brands. 91% of those surveyed are open to brand-led AR features. For instance, 29% of Instagram users use AR on Instagram on a weekly basis. This demonstrates the immense opportunities marketers have with AR to market their products in more innovative ways.

“People continue to experiment with different features and services in their search for convenience. Brands that figure out how to give people time back may earn a timeless place in consumers’ hearts and wallets. For marketers, whether you engage people via Live Shopping, AR or interactive polls in stories, the goal should be adding value versus using the technology in and of itself,” added Shehadi.

The study was conducted by Ipsos and Facebook IQ, to gain a global view of a future that, in many ways, is arriving ahead of schedule. Other markets surveyed include Australia, Colombia, Indonesia, Nigeria, UK, Vietnam, Argentina, Brazil, India, Mexico, The Philippines, Thailand and US.