Dubai: By buying fashion, food and fun on a regular basis, Emirati teens went to the top of the spending class according to a new study conducted in the UAE, Saudi Arabia and Egypt. On average, local teens shell out $103 (Dh378) a week on whatever catches their fancy.
That is four times the global average of $28 a week that a teen spends. In fact, UAE teens are second behind those in Norway, who spend $134 on average.
Also, they easily outstripped the claims of their regional counterparts in Saudi Arabia — who spend $56 on average a week — and in Egypt, estimated at a miserly $7 a week.
These numbers are based on findings conducted by the Dubai-based research consultancies AMRB and TRU, which polled 2,000 youngsters between 12 and 19 years old. (A similar poll was held in more than 30 countries by TRU.)
The fact that UAE teens came out in pole position — and the margin at which they did so — did come as a surprise.
"We were anticipating spending among local teens would be quite high — but even we were surprised to find they were the highest spenders in the world," said Gagan Bhalla, the regional CEO at AMRB.
In fact, UAE teens are just as likely to spend more if they could, according to more than 60 per cent of those polled. Another 36 per cent said they would maintain the current levels.
Global downturn
This is in sharp contrast to the sentiments expressed by their global counterparts, who were more likely to spend less this year, at least according to 17 per cent of them. The factor holding them back was the downturn and the bitter lessons it taught them.
Going by this data, obviously UAE teens were more cushioned against market forces.
"We have to understand that Emiratis are a small proportion of the population and they do get support from the federal government," said Bhalla.
"Hence, the impact of the downturn is hardly visible [among Emirati teens]. Having said that, they are a lot more conservative about their future spending expectations.
And what do the UAE teens spend their cash on? All the usual preferences of teens anywhere are there, but the local ones seem to have a particular affinity for looking good and feeling good.
They spend a substantial $100 a month on clothes and accessories against the seemingly thrifty $15 spent by their global counterparts. And yes, UAE girls spend more than boys on clothes.
None of this comes as any surprise to Muna Al Gurg, director of retail at the Easa Saleh Al Gurg Group, which represents hip brands such as Benetton.
"Teenagers are actually very switched on when it comes to trends; they are always in tune with what the latest fashion magazines put together or the latest ‘look of the day' that certain fashion bloggers tweet about for example," said Al Gurg.
For a retailer or a brand marketer, what this means is "how important the design of your brand and store is in creating teen loyalty," Al Gurg added. "Price does matter to Generation Y — however, we have found that once a brand meets a real need, those same teenagers are willing to spend the extra money to purchase that product. In terms of fashion, there could potentially be a niche market that perhaps has not been tapped into by competitors."
In keeping with their looking good mindset, UAE teens also splurge on health and beauty treatments, and average $34 a month on doing so against the $4 that teenagers elsewhere shell out. When it comes to seeking out the hippest entertainment pursuits around, UAE teens are right in the vanguard. That translates into a substantial $41 on average a month against the $5 spent by teens elsewhere.
Challenges
With no local teen unlikely to ever get caught with a mobile phone "that's so yesterday's", parents should not really mind them splashing out on the latest apps-enhanced devices.
Not that UAE teens need any encouragement on this score — at an average $28 a month, they spend four times more than the global average.
So what should a marketer do right, at least on the basics?
"Teens of today are not just a demographic, it's a mindset," said Preeta Menon, general manager for sales and marketing at Al Madani Group, which represents Levis and Dockers.
Get that right or there-abouts and a brand might just be able to connect with teens. The cash they tote around in their wallets and designer handbags sure make it worthwhile for brands to do so.
"As brands we target their basic need of wanting to "belong" and allow them to express their "individuality".
"It's important as brands to be on top of trends. It's important for brands to be seen in their social networks.
"Contrary to what is perceived, the abilities to market to teenagers far outweigh the challenges," said Al Gurg.
"Some of the challenges are common: standing out from the incredible variety that is available to teenagers, being continuously innovative and perceived as a cutting-edge brand."
Not clued in yet on the young
Even as fashion brands and mobile handset makers try to corner the teen market, there are still many that do not have them in their marketing sights.
"Sectors like telecom, finance, personal care and foods have not yet realised the long-term potential of getting on board a consumer at a young age and then building a life-long relationship with him or her," said Gagan Bhalla of AMRB.
"These marketers need to realise that with the demographic skew towards youth in this part of the world, they need to take active measures to recruit young consumers before they get enticed by the competition. Maintaining a relationship with an existing customer is much easier than getting a customer to switch from one brand to another."
