Dubai: With ‘Black Friday’ related promotions going live in UAE and wider Gulf, consumers have a chance to decide whether the up to 70% discounts on offer will convince them to buy now. Or wait for prices to drop further when the next sales season kicks off early next year.
That’s because UAE and Saudi consumers are still showing quite a bit of caution about their spending, given how costs related to rents, transport, daily essentials and on education (where it applies) have been rising.
“For many Gulf shoppers, the Black Friday promotions might seem a bit early, because they would like to know what they are getting as end-of-year bonuses from employers,” said the CEO of a retail franchise in the UAE. “If those bonuses are generous, we could see heavier spending happen closer to mid-December.”
All the big names in the local retail sector have brought out their offers, with the discounts ranging between 30-70%. When it comes to consumer tech and durables, shoppers have another advantage – there are the offers plus the actual retail price on devices have dropped from their 2022-23 highs.
Many coloured ‘Black Friday’ promotions
In the UAE, there are many colour themes for the peak November discount season themed around ‘Black Friday’. There’s white and yellow in the mix, and other shades too make their presence felt with shoppers.
“When considering the average price trend in tech and durables, (there is) a downward trend ranging from 5% in Saudi Arabia to 8% in the UAE,” said Erik Windell – Customer Success Manager (T&D), NielsenIQ, the retail consultancy. “Furthermore, the average depth of discount applied to tech and durable (T&D) products is between 5%-15% across UAE and Saudi Arabia.”
A chance for Apple’s Vision Pro?
The Apple Vision Pro has landed in the UAE, and retailers will be hoping that the Dh13,999 headset will feature in the ‘must-buy’ gadget lists of as many shoppers as possible this sales season. But will it?
Image Credit: Bloomberg
“There’s a price slash from the – unofficial – Dh19,999 that Apple Vision Pro was selling for before the UAE launch,” said Rajat Asthana, Chief Operating Officer at Eros Group. “It has had limited demand and Apple dropped the price due to lackluster demand globally. Consumers might need more time to make up their minds on the Vision Pro.”
It’s a promising start to Black Friday in UAE across most online platforms. Offline retailers have also jumped on the bandwagon with strong deals. Consumers will not be disappointed
– Rajat Asthana of Eros Group
Online retailers say searches for their Black Friday offers have been trending in recent days, and with a good chance that these would translate into actual sales. The anticipation is that actual buys would peak in the November 25-November 30 period (when salaries start getting credited).
Although more Saudi consumers are feeling (they are in) a better financial position, the cautious consumer remains the biggest consumer group with 35% in Saudi Arabia
– Ugur Karci of NielsenIQ
“Customers definitely wait for this time of year to purchase big-ticket items,” said Neha Choudhary, Growth & Onsite for the noon marketplace. “During this period, we offer bank discounts, buy-now-pay-later options – and our lowest prices of the year.
“Shoppers absolutely have come to expect deep discounts during this period, making it a prime time to attract and convert new customers.”
Make use of the promotions
That’s the retailers’ mantra – if shoppers were concerned about high prices this year, then now is the time to buy when the discounts are this high.
“Given the inflation, disposable incomes have been squeezed,” said Sandeep Ganediwalla, Partner at RedSeer Consulting. “Hence, the anticipation for this year’s sales season is actually higher. We reckon that fashion is expected to be most popular category this Black Friday season, followed by electronics and beauty products.”
In the UAE, what’s sold during promotions contributed 31.1% of the overall during 2023. The corresponding figure for Saudi Arabia was 33.6%.
“Consumers in the UAE are in fact less cost-conscious and continue to seek out premium products,” said Ugur Karci, APP Customer Success Leader (FMCG) at NielsenIQ. ((But) an argument can be made that the Saudi consumer is perhaps more reserved when it comes to spending on premium goods.”
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