UAE consumers become more cost-conscious

Dubai: Consumers in the UAE are becoming more cost-conscious and less brand-loyal, according to a recently released survey.

Shoppers in Saudi Arabia and the UAE felt that they were forced, over the last two years, to make adjustments to their spending habits, and now feel more confident about spending disposable income, in order to regain some of their lost purchasing power, consultant McKinsey said in a report released last week.

In Saudi Arabia, 34 per cent of consumers are looking to buy their preferred brands at any price point, as compared to 42 per cent in April 2017. In the UAE, this number was 34 per cent as compared to 41 per cent in 2017.

“Interestingly, consumers in UAE and KSA responded similarly to most questions that were put to them and despite fluctuating financial sentiment, they believe they are saving and delaying purchases less than in Spring 2017,” said Gemma D’Auria, leader of the retail practice in McKinsey’s Middle East office.