The Covid-19 pandemic has had a profound impact on consumer behavior worldwide, and the Gulf countries are no exception. Despite the presence of extravagant shopping malls that serve not only as shopping destinations but also as cultural and social hubs, e-commerce has seen a significant surge in popularity in this region. This shift in consumer habits has forced luxury brands in the Gulf countries to adapt and reinvent themselves.
Previously, online purchases were a minority in the Gulf countries, but now, 84% of luxury product buyers in this region claim to combine online and in-store shopping. The pandemic-related travel restrictions and health measures have propelled the growth of e-commerce, leading luxury brands to offer new and innovative experiences for their customers. Brands like Louis Vuitton and Gucci have introduced personalized online platforms and showcased their products in 3D or augmented reality, making the online shopping experience more engaging and immersive.
The increase in online purchases is evident across all product categories, with leather goods, fashion, and beauty being the most popular. Furthermore, 50% of customers in the Gulf countries now prefer limiting their shopping in physical stores to reduce the risk of virus spread. While 20% of luxury buyers and 40% of beauty buyers prefer to make their purchases online, many still emphasize the importance of being able to touch and try on items before making a purchase. To address this concern, luxury brands have incorporated augmented reality into their online platforms, allowing customers to virtually try on makeup or experience a virtual in-store watch shopping experience on their smartphones.
Social media plays a crucial role in luxury brand strategies in the Gulf countries, with advertising on these platforms being more popular than outdoor or TV advertisements. Additionally, luxury brand e-shops have gained prominence in the region and are now the third source of information for customers in terms of brand and product research. However, customers also expect e-commerce to provide more human interactions, such as the ability to shop with others or interact with fellow online shoppers. This raises questions about the role of influencers, who are sometimes seen as salespeople without genuine commitment to consumers.
The pandemic has brought about a new era of shopping experiences in luxury malls, and it seems that these changes will endure even after the crisis is over. In fact, 30% of luxury customers in the Gulf countries express a desire to maintain their new shopping habits post-pandemic. It is projected that by the end of 2022, 50% of the luxury customer base in this region will make online purchases, prioritizing home delivery. However, it remains to be seen whether the demand for more responsible e-commerce practices, which is observed in other markets, will also become a priority in the Gulf countries.
Please find below two useful links that provide further insights into the evolving luxury consumption habits and e-commerce trends in the Gulf countries:
1. Link 1: Luxury E-commerce Trends in the Gulf Countries
2. Link 2: The Impact of Covid-19 on Consumer Behavior in the Gulf Countries
