Mobile in shopping in MENA, September 2014

Super malls & market stalls

How mobile is influencing shopping in MENA

Photo: Samuel Kimlicka

90% in Saudi

Arabia & UAE

60% in Egypt

of mobile internet users have used their phone in store to check prices and

product reviews, ask friends for advice etc.

A high number have stopped a purchase as a result!

Source: On Device Research, September 2014 Countries: Egypt, Saudi Arabia, United Arab Emirates, N=1500

81% In Saudi

Arabia & UAE

44% in Egypt

O Huge implications for retailers & advertisers

Transparency is the new norm – price comparison and product

reviews are always in consumers pockets, just one Google search away.

Brands can’t hide product flaws and unfair pricing.

The upside are new opportunities to advertise to people while

they are in the store.

O This report on how shoppers in the Middle East use mobiles

in-store presents findings from research with 1,500 mobile

users in Egypt, Saudi Arabia and United Arab Emirates.

The survey was conducted by On Device Research, a mobile

research company, in September 2014 with a representative

sample of mobile internet users. In Egypt 70% of the

respondents were using feature phones.

On Device Research uses the mobile internet to gain access to consumer opinions at any time, place or country. The company has conducted over 20 million surveys in 74 countries, and has offices in London, Dubai and Singapore.

Egypt Population: 82 million GPD per capita: $3,314

Saudi Arabia Population: 29 million GDP per capita: $25,851

United Arab Emirates Population: 9.4 million GDP per capita: $41,691

Why look at mobile and shopping in the region? Saudi Arabia and UAE can easily be described as places where shopping is a national sport. It’s no wonder some of the world’s largest shopping malls are found there. The Dubai Mall attracted over 65 million shoppers in 2012, more than visited New York that year. It’s the world’s largest shopping mall (1.12 million sq meters or 12.1 million sq ft) that houses 1200 stores.

Photo: neekoh.fi

Egypt Saudi Arabia United Arab Emirates

Popula'on 82 million 29 million 9.4 million

Internet penetra'on 25% 60% 71%

Mobile penetra'on 120% 176% 167%

Smartphone penetra'on 32% 76% 75%

Urban dwellers 44% 84% 78%

Sources: GSMA Intelligence, World Bank, eMarketer

Egypt’s no lightweight Traditionally Egypt has been associated with market stalls and small, local shops. However, the most populous country in the region has been changing in recent years. Brands like Marks & Spencer, Ikea and Zara have entered the market while shopping centers such as the the Mall of Arabia in Cairo (822 thousand sq meters of shops, restaurants and a cinema) are winning the wallets of the young and growing middle class. Photo: epSos.de

Not a one-size-fits-all region Egypt, Saudi Arabia and UAE are the most vibrant and active consumer

markets in MENA but there are plenty of differences between the

three countries.

Egypt is clearly playing catch-up – it has lower smartphone adoption

rates, data speeds and income levels. However, smartphone users in

Egypt are very similar in behaviour to those in Saudi Arabia and UAE.

…have used a phone for shopping-related

activities while in the store.

Note that among the smartphone users in Egypt this figure is 86%.

90% 60% In Saudi Arabia & United Arab Emirates

In Egypt


Asking friends & family for advice by sending them a photo of the

product or calling them for advice is the most popular shopping-

related activity while in store.

Note that in Egypt only 20% of feature phone owners do this. Among the smartphone users the figure increases

to 43% which is in line with the figures from Saudi Arabia (36%) and UAE (44%).

A = 35% +


!!

l

Checking prices and reviews, and asking friends or family for advice are the most common shopping-related activities where mobile helps while in the store. Q. Have you used your phone when shopping in store in the past 3 months?

Buyers seek assurance


0%

5%

10%

15%

20%

25%

30%

35%

Check prices Call a friend/family for advice

Send a photo of product to friend/

family

Check product reviews

Fill time at the checkout

Show shop assistant the item you're looking for

Check opening times

Egypt Saudi Arabia UAE

57%

28% 24% 22% A

Play games Take photos Visit social networks

O

\ * *

* G t

Use their phone for entertainment

while shopping


Entertainment beats shopping… More people use mobile for games, social networks, talking to friends, than for directly shopping-related activities. Q. Have you used your phone in store for non-shopping related activities?

0%

5%

10%

15%

20%

25%

30%

35%

Played a game Taken photos Used social networks

Called friends/family

Read news Watched video clips

Sent emails Sent instant messages



Anyone playing games, using social networks,

reading news or watching video clips while in

the store can be targeted with timely and

relevant offers through mobile ad networks.

Nader Kobeissi MD MENA, On Device Research

` Non-shopping activities – a huge opportunity

People engaged in non-shopping activities on their phones while in

shopping centres is a great opportunity for retailers.

Combining technologies like beacons, geo-fencing and real-time bidding platforms it is possible to serve timely and relevant offers to activate shoppers.

Anyone playing games, using social networks, reading news or watching video clips

can be targeted.

Mobile prevents and shifts purchases

74%

26%

90%

10%

88%

12%

A large majority of those who use mobile in the store for shopping have stopped, postponed or shifted buying to an alternative channel as a result. Q. Have you ever stopped a purchase in store as a result of using your mobile phone?

YES NO



Better price online or in a different store is the biggest reason to stop, or shift the purchase to a different retailer. Q. Have you ever stopped a purchase in store as a result of using your mobile phone?


33% 18% 16% Q # b

Found a better price

Found a better product

Friend/family didn’t like the item

Better price elsewhere changes minds Lower price either online or in a different store is the biggest reason among those who stop or shift purchase to a different retailer. Q. Have you ever stopped a purchase in store as a result of using your mobile phone?


0%

5%

10%

15%

20%

25%

30%

35%

40%

Found a better price Found a better product online

Someone I asked for advice didn't like the

item

Saw a negative review Bought a similar item online

Couldn't find info about product online


s Where can brands reach shoppers on mobile?

Facebook and Youtube on top

0%

10%

20%

30%

40%

50%

60%

70%

Facebook Youtube Google+ Twitter Instagram Souq Wikipedia Dubizzle


Retailers and brands should also look for advertising opportunities with local players like Souq and Dubizzle in UAE. Q. Which of the following services do you use regularly on your phone (at least once a week)?


G

Capturing the attention of casual gamers With nearly 1/3rd playing a game while in store advertising in the right games could be a winning formula. App Annie tracks the movers and shakers (and money makers) in the app ecosystem.

Chat apps not open to advertising Most chat apps don’t offer traditional advertising solutions but clever brands can use them to engage fans and offer deals and discounts. Q. Which of the following chat apps do you use regularly on your phone (at least once a week)?

0%

10%

20%

30%

40%

50%

60%

70%

WhatsApp Facebook Messenger

Skype Viber BBM WeChat Tango Kik Line



w MENA – who’s online on their phone?

40% went online in the last 12 months Cheaper handsets, data plans and network coverage is influencing mobile internet penetration - almost 60% started using mobile internet during the last 2 years. Q. When did you first use your phone for online services?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

During the last 12 month 1-2 years ago 2-5 years ago Over 5 years ago

Egypt KSA UAE


0%

10%

20%

30%

40%

50%

60%

16-24 25-34 35-44 44+

Egypt KSA UAE

Young and active The region’s median age is around 25 years and mobile internet population reflects that perfectly.


Tablet ownership on the rise All respondents have an internet connected phone, but high ownership of tablets (even in Egypt) was a real surprise! Q. Which of the following devices do you have at home that are connected to the internet?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Tablet Laptop computer Desktop computer Gaming console EBook reader

Egypt Saudi Arabia UAE Average


Find out more + request data in Excel If you’d like to take a deeper look at the findings (including additional questions, data points and

gender splits), then get in touch!

Nader Kobeissi, Managing Director, MENA [email protected] @naderkob +971 55 154 6263

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