Thrill of the Chase: 54% of Saudi Arabia Consumers Enjoy The Hunt for a Good Deal
Consumers Use In-Store Conveniences Such as Banking (53%), Fast Food Services (44%) Or Pharmacy (40%)
Part of the fun of shopping is the thrill of the chase and 54% of respondents in the Kingdom of Saudi Arabia (KSA) say they enjoy taking the time to find bargains, according to Nielsen’s latest survey report on retail growth strategies. Consumers are addicted to a good deal and it might be because retailers and manufacturers have conditioned shoppers to buy on deal.
Interestingly, while many consumers remain price conscious, when it comes to store selection, price-related attributes fall below several others. In KSA, consumers believe value is about more than just the lowest price. In fact, consumers rate store layout (92%), ease to get in and out quickly (92%), product availability (92%) and high-quality produce (90% as highly and somewhat more influential in store-selection decisions than the lowest price (89%).
One of every two respondents in KSA say grocery shopping is a chore and that they try to spend as little time as possible doing. This low level of satisfaction primarily stems from a belief that retailers don’t understand and deliver on their needs. Less than half (47%) of KSA respondents believe their main grocery retailer always or mostly communicates with them in a relevant way, understand their grocery requirement (45%) and provide offers they like and value (42%).
In KSA, primary reason for consumers to go groceries shopping is to buy a few essential items (32%) while the second most popular reason is to buy something they have run out of and make a quick trip (22%). The in-store services most widely available and used are convenient options that cater to on-the-go lifestyles. Five out of 10 respondents say they use in-store banking (53%), fast food (44%), pharmacy (40%) services and petrol filling stations (40%). The way to stay relevant and connected to ever-changing consumer demand is to find pockets of unsatisfied demand and provide the products and services that will keep consumers satisfied and coming back time after time.
Another notable finding from the survey, which comes as no surprise is that KSA respondents place health and wellness as a top priority. Nearly seven in 10 respondents (65%) say they actively seek products with healthful ingredients, 59% say they read nutritional labels carefully, and 48% believe there are not enough healthful options available to buy.
“From the survey, we also looked at price sensitivity and found that it varies by category,” said Arslan Ashraf, managing director, Arabian Peninsula and Pakistan, Nielsen. “It is important for retailers and manufacturers to know, what consumers would do if prices were to increase by 10%. Knowing which categories are more or less sensitive to price changes is essential in breaking the promotion addiction and driving growth. In KSA, nondiscretionary items, such as dairy, bread and bakery, and personal care are less price sensitive than discretionary items, such as convenience foods, carbonated beverages, snacks and prepared meals.”