Ramadan Causes Online Shopping To Increase

By Chanel Smith, EMEA Editor

Ramadan is nearing, and many Muslims around the world will refrain from consuming food, drink and other vices. Instead, they will spend more time online shopping.

According to Trade Arabia, online spending frequency and sales have a large upward shift amongst Middle Eastern consumers during Ramadan. In the U.A.E., for example, the eCommerce market had a 40 percent increase in sales during the Holy Month in 2012. Fifty-four percent of Egyptian consumers also enjoy buying online during Ramadan, and admitted they purchase more online during the holiday season in comparison to the rest of the year.

The Muslim lifestyle is drastically altered during Ramadan as people patiently fast until sunset for their religious duties. There are some who attend mosque for prayer or stay at home to read the Quran, and then there are those who opt for more technological stimulation and spend their time shopping online.

The boost in sales has been named “The Ramadan Effect,” or “The Ramadan Rush,” because although certain business sectors go quiet, other businesses flourish. Muslims are often expected to give up food during daylight hours, naturally causing grocery stores sales to slow during this month. But shopping centers are a different story.

Participants seldom leave the house during the day, for two main reasons: family time is important during Ramadan, and a lack of food and water affords followers little energy to venture out in the heat. After sunset when Muslims have eaten and rejuvenated, many families will go to the mall and shop.

“Although during the daytime things can get a little slow, in the evenings, particularly in the malls, you will find there is a lot of activity, Esam Fakhro, chairman of the Chamber of Commerce and Industry for Bahrain, told The Gulf News. “This usually makes up for the slowdown in the daytime.”

In the last few years, the Internet has gained popularity in the Middle East region, as has the eCommerce market. It is evident that the rise in technology has had prominent impact on consumer behavior during Ramadan. The Arab world has one of the world’s highest smartphone penetrations in the world, and consumers are warming up to buying via mobile device and online. please insert to “smartphone penetrations”

“It’s to be expected that frequency and sales figures should fluctuate during any holiday season with a tradition of gift giving,” explained Mahmoud Fouz, managing director at the online retailer, Mizado.com. 

The number of online sales have immense growth during Ramadan, however this is not the only shift in consumer trend. The times of consumption adapts to the Holy Month’s lifestyle, and Muslim consumers are more likely to shop at later hours in the night instead of during the day.

Internet use in Saudi Arabia was reported to peak between 3am and 6am during Ramadan. Interestingly, since these hours are generally the hours people are in a more private space after dinner, the survey revealed that most of the online population was through a mobile device.

“Online shopping times change significantly with the advent of the month due to changes in working hours and a shift in people’s peak energy hours from daytime to after sunset. Traditionally, people have a tendency to do their online shopping during working hours, rather than in their spare time – with a shift in office timings, consumers are now more active online throughout the night,” stated Fouz.

To read the full story at Trade Arabia click here or to read the Gulf News click here.