Ramadan & Eid 2019 - Planet · •Questions can be submitted at any time via the Go to Webinar ‘Questions’ screen •The webinar recording will be circulated after the event

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Ramadan & Eid 201916 May 2019

2Housekeeping

• Today’s webinar is scheduled to last 1 hour including Q&A

• All dial-in participants will be muted

• Questions can be submitted at any time via the Go to Webinar ‘Questions’ screen

• The webinar recording will be circulated after the event

3Agenda

1 Marho Bateren, Market Intelligence Analyst, Planet

• Ramadan & Eid Tourism Insights

• Key Nationalities

• Arrivals Forecast

2 Said Chaarawi, Head of International Retail Development

• About Ramadan & Eid

• Selling tips for the Ramadan & Eid periods

• Etiquette tips

3 Q&A Session

4

Marho BaterenMarket Intelligence Analyst, Planet

5The importance of Muslim Tourists5

• The Muslim travel market is estimated to be worth a staggering US$192 billion in 2020.

• This figure will account for over 13 per cent of the global travel total [1].

• Every year millions of Muslims around Europe and across the globe observe Ramadan and celebrate the two Eid festivals, Eid al-Fitr and Eid-al-Adha.

• Many Muslims are choosing to travel abroad in order to practice and celebrate.

• Key source markets are GCC and South East Asia

• With this, retailers and hospitality providers need to be more aware and cater to the needs of these travellers.

[1] https://www.academia.edu/10469811/HALAL_TOURISM_A_NEW_GOLDMINE_FOR_TOURISM

6Gulf Co-Operation Council (GCC): 2018Main GCC nations account for 9% of total Tax Free shopping sales, and represent 2% of global Muslim population

Tax Free Sales Turnover

Vouchers/ Transactions

Average Transactions Values

UAE -5% -9% 5%

SAU -8% -3% -6%

KUW -4% -7% 4%

QAT 11% 4% 7%

TOTAL -3% -5% 2%

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Austerity RecoveryFiscal reforms, new economic visions and rising oil prices are expected to take the Gulf Cooperation Council (GCC) economies into a recovery path.

Number of factors affected GCC nations

Qatar BlockadeQatar has been cut off by some of its powerful Arab neighbours over its alleged support for terrorism.

Dollar Pegged CurrenciesThe UAE and other GCC countries (with the exception of Kuwait), all have currencies that are pegged to the US dollar.

Over-Dependence on Oil?Despite a strong drive in recent years by GCC authorities to diversify their economies, oil continues to play a dominant role, constituting up to 46 percent of total GDP

8South East Asia: 2018SE Asia nations account for 3% of total Tax Free shoppingsales, and represent 43% of global Muslim population

Tax Free Sales Turnover

Vouchers/ Transactions

Average Transactions Values

IDN -10% -15% 7%

IND 4% 2% 2%

PAK -7% 1% -9%

BGD 10% 1% 9%

TOTAL -4% -4% 0%

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Manufacturing HeavyMany countries within the region are dependant on the manufacturing of goods in order to drive GDP growth.

Number of factors affected South East Asian nations

China’s Influence in the regionTrade wars positively affect India’s trade. Beijing is a crucial player in the country's economic growth but increasingly unpopular

Security ConcernsAlthough Pakistan was recently removed from the US’ National Security Threat List, there is still a level of volatility within the country

Recent ElectionsGeneral elections has been underway recently in both India and Indonesia. International travel, especially for pleasure, can be effected due to political and civil unrest.

10Ramadan & Eid Sales Performance: 2018

44%

103%

1%

-29%

-46%

-15%

2% 1%

15%

TOTAL GCC SEA

Ramadan Eid-Al-Fitr Eid-Al-Adha

Ramadan drove the highest amount of sales growth versus the two Eid festivals

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3%

2%

2%

3%

2%

2%

1% 1%1%

2%

1% 1%1%

2% 2%

2%1% 1%

2%

2%

1%

1%1% 0%

1%

1% 1% 1%1%

2%

2%

3%

3%

5%

6%

5%

4%

3%

3%

2%

2%2% 2%

1%2%

1% 1%2%

2%2%

1% 1%

Wk 1Wk 2Wk 3 Wk4

Wk 5Wk 6Wk 7Wk 8Wk 9 Wk10

Wk11

Wk12

Wk13

Wk14

Wk15

Wk16

Wk17

Wk18

Wk19

Wk20

Wk21

Wk22

Wk23

Wk24

Wk25

Wk26

Wk27

Wk28

Wk29

Wk30

Wk31

Wk32

Wk33

Wk34

Wk35

Wk36

Wk37

Wk38

Wk39

Wk40

Wk41

Wk42

Wk43

Wk44

Wk45

Wk46

Wk47

Wk48

Wk49

Wk50

Wk51

Wk52

Weekly Average: 1.9%


GCC Weekly Sales Percentage: 2018

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ramadan4% of SiS€708 ATV

Eid-Al-Fitr3% of SiS€577 ATV

Eid-Al-Adha16% of SiS€582 ATV

RamadanEid-Al-FitrEid-Al-Adha

12GCC Countries Weekly Sales Mix: 2018

31%

39%35% 35%

25% 28%

21%

23%25% 25%

28%27%

27%

24% 25% 25%

27%28%

22%14% 15% 15%

20% 17%

Wk 1Wk 2Wk 3 Wk4


Wk11

Wk12

Wk13

Wk14

Wk15

Wk16

Wk17

Wk18

Wk19

Wk20

Wk21

Wk22

Wk23

Wk24

Wk25

Wk26

Wk27

Wk28

Wk29

Wk30

Wk31

Wk32

Wk33

Wk34

Wk35

Wk36

Wk37

Wk38

Wk39

Wk40

Wk41

Wk42

Wk43

Wk44

Wk45

Wk46

Wk47

Wk48

Wk49

Wk50

Wk51

Wk52

UNITED ARAB EMIRATES SAUDI ARABIA KUWAIT QATAR



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4%

3%

3%

2% 2%

2%

1% 1%

1%1% 1%

1%

2%

1% 1% 1%

2%

1%

2%2%

2% 2% 2%2%

3%

5%

4%

3%

3%

3%

2%2%

2%

2%

1%1%

1%

2%

2%2%

2% 2%2%

1%1% 1%

1%

2%

1%1%

1%

1%

Wk 1Wk 2Wk 3 Wk4


Wk11

Wk12

Wk13

Wk14

Wk15

Wk16

Wk17

Wk18

Wk19

Wk20

Wk21

Wk22

Wk23

Wk24

Wk25

Wk26

Wk27

Wk28

Wk29

Wk30

Wk31

Wk32

Wk33

Wk34

Wk35

Wk36

Wk37

Wk38

Wk39

Wk40

Wk41

Wk42

Wk43

Wk44

Wk45

Wk46

Wk47

Wk48

Wk49

Wk50

Wk51

Wk52

Weekly Average: 1.9%


South East Asia Weekly Sales Percentage: 2018


RamadanEid-Al-FitrEid-Al-Adha

Ramadan10% of SiS€435 ATV

Eid-Al-Fitr12% of SiS€459 ATV

Eid-Al-Adha4% of SiS€408 ATV

14South East Asia Countries Weekly Sales Mix: 2018

9%5% 4% 4%

19%

12%

30%

53%47% 47%

49%

37%

58%

40%47% 47%

29%

48%

3% 2% 1% 1% 3% 3%

Wk 1Wk 2Wk 3 Wk4


Wk11

Wk12

Wk13

Wk14

Wk15

Wk16

Wk17

Wk18

Wk19

Wk20

Wk21

Wk22

Wk23

Wk24

Wk25

Wk26

Wk27

Wk28

Wk29

Wk30

Wk31

Wk32

Wk33

Wk34

Wk35

Wk36

Wk37

Wk38

Wk39

Wk40

Wk41

Wk42

Wk43

Wk44

Wk45

Wk46

Wk47

Wk48

Wk49

Wk50

Wk51

Wk52

PAKISTAN INDIA INDONESIA BANGLADESH



15Arrivals Outlook: GCC

May-18 to Jul-18May-19 to Jul-19

+17.8% +2.7%+7.9% +1.3% +15.8% -10.3% +1.1% +2.6%

AUT

+18.8% -12.9% +24.1% -9.5%

ESP FRA ITA

PRT CZE

IRL DEU+13.3% -4.5% +1.9% -0.8%

TOTAL GBR FIN+8.5% -4.1% +9.0% -6.3% -10.3% -11.7%

16Arrivals Outlook: India

May-18 to Jul-18May-19 to Jul-19TOTAL GBR FIN

+10.0% +1.4% +5.7% +5.0% +3.6% +6.9%

IRL DEU+18.1% +9.7% +2.7% +4.6%

PRT CZE

AUT

+43.0% -13.5% +32.5% -12.6%

ESP FRA ITA+1.6% -10.0%+22.8% +1.4% +10.7% -0.1% +15.2% -0.8%

17Shopping & Arrivals Growth Summary: 2019 YTDFour out for the top five source markets during Ramadan & Eid are performing ahead of the total market

Total Sales

Total Vouchers

Total ATV

Total Arrivals

+5%

+1%

+3%

+2%

Top 5 Source Markets

SAUDI ARABIA 1% 14% -11%INDIA 6% 5% 1%

KUWAIT 16% 10% 6%INDONESIA 17% 17% -0%

Tax Free Sales

Turnover

Vouchers /

Transactions

Avg. Transaction

Values (ATV)

UNITED ARAB EMIRATES 5% -3% 8%

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Eid Al Fitr 2019Said Chaarawi – Head of International Retail Development

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Introduction

20What is Eid Al Fitr

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• Eid is the festival of breaking fast after the holy month of Ramadan

• It occurs the day after the end of Ramadan

• Think of it as the Muslim Christmas in terms of festivities

• Please note that Ramadan and Eid are based on the lunar calendar so their dates are variable every year.

21Dates to remember

• This year, Ramadan started on the 5th of May and will end on the 4th of June

• Eid is on the 4th or the 5th of June and lasts for 3 days officially but the festivities can go on for a whole week.

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22Trading period this year

• The first half of Ramadan would be quiet as Muslims tend to stay in their countries with their families

• The second half of Ramadan (last two weeks of May) would be the time to prepare for the Eid festivities which includes buying new clothes, gifts for family and friends and specialty sweets

• The key trading period this year is from Mid May till the first half of September.

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The Commercial Opportunity

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24The Commercial Opportunity

• The first half of Ramadan would be quiet as Muslims tend to stay in their countries with their families

• The second half of Ramadan (last two weeks of May) would be the time to prepare for the Eid festivities which includes buying new clothes, gifts for family and friends and specialty sweets

• The key trading period this year is from Mid May till the second half of September.

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Tips on maximising the commercial opportunity when serving Muslim customers during the Eid

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26Store Atmosphere

• Always be in a festive mood when dealing with your Muslim customers during Eid… it’s their Christmas after all

• Expect to deal with big groups of friends and families so try to work as a team

• Best strategy is to treat your customers as guests in your house, not customers in your store… this ensures a long-lasting relationship and loyalty towards your store and brand.

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27Key Greetings

• Greeting for Ramadan is: Ramadan Karim

• Greeting for Eid is: Eid Mubarak.

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28Maximising every Transaction

• Try to stock many items suitable for gifting, like accessories

• Make sure to mention the availability of items suitable for gifting, even after your customer chooses what he/she would like to buy

• Expect resistance for placing orders for the future, Muslims want to buy what you’ve got in stock now!

• Always sell the look, not the product.

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29Going the Extra Mile

• Offer your full attention to the group you are dealing with and know that generosity is admired in Islam…

• A salesperson can be generous with time spent with the customer, product information offered and dedication to go the extra mile.

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30How to prepare from now

• It is a nice gesture to offer a little (non-alcoholic) sweet when the customer approaches the till to pay

• Don’t forget to send your greetings to your Muslim customers few days before Eid. This can be by email, text message, WhatsApp or a greeting card. This will remind your customers who are spending their holiday in your country to visit you for their shopping and increase footfall accordingly

• Check your customers’ database now to organise your Muslim customers’ contact list for preparation.

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31Etiquette Guidelines

• When dealing with couples, always engage with the same sex more than the opposite one… ex: If you are a male salesperson, talk more to the man in the group than to the lady

• Avoid offering your hand to the opposite sex for a handshake

• Do not attempt to touch the opposite sex even for the purpose of helping him/her try the product on.

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32Etiquette Guidelines

• When talking about money (presenting prices or taking payment at the till) always talk to the male in the group

• Avoid asking personal questions, but talk extensively about the holiday experience, fashion trends in Europe or things to do and see in your city

• Look at your customers as potential friends for life, this may ensure repeat and referral business

• Don’t forget to present your name and contact details to your customers before they leave and don’t be shy to ask them to recommend you and your store to their friends and family back home.

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As always, your success is our success.

So please don’t hesitate to contact us should you have any questions or need further specific advice.

[email protected]

Q&A

34

thank you

planetpayment.com

Documents

Ramadan & Eid 2019 - Planet · •Questions can be submitted at any time via the Go to Webinar ‘Questions’ screen •The webinar recording will be circulated after the event