How Purchase Behavior is changing in GCC

How Purchase Behavior is changing in GCC

The GCC region has been going through a tough economic situation over the past two years due to factors ranging from the unstable oil prices, increase in taxes, rising cost of raw materials, and higher inflation rates.


Adding to those factors, the GCC countries are starting to accelerate structural reforms to diversify their economies away from oil, and boost the role of the private sector. Earlier this year, they agreed to apply the unified VAT in Jan 2018.


With the current economic situation, prices are increasing, and accordingly consumers purchase power got strongly affected across all categories: either by switching to a lower tier brand or reducing their consumption.


We asked a sample of 400 males, household decision makers, in Saudi Arabia about their change in expenditure for the most consumed categories. When prices increase, will you decrease your budget, maintain same budget or increase the budget?

Based on the results, we ranked the list on a spectrum from the most to least categories affected by price increases, and divided them under warningwatch out, and low-risk based on their urgency for price management.

All of the categories, on different levels of the spectrum, are at risk of consumers either decreasing their consumption, or lowering the brand tier.


With the expected continuous reforms in 2017 & 2018, and VAT soon to be applied, a tool is needed to pinpoint those changes in consumer behavior towards the different product offerings, with the objective of adjusting the marketing mix to meet the new conditions


Smart Shopper™ assists brand managers of price sensitive categories through:


1) Identifying the changes in consumer behavior


2) Creating strategies for optimizing the brand’s offer to improve your market position, while minimizing any loss during the era of economic pressure.

Request more information about Smart Shopper™