Ramadan not only modifies meal times for a month, but creates its own retail patterns. Newer products from companies as far afield as France and India make it to stores to target the halal products market, which is estimated at $2.1 trillion (Dh7.7 trillion), according to research cited by WAM, the Emirates News Agency. Ramadan is a good time to launch everything from halal cosmetics to traditional desserts, dolls and canned food. By the time the Eid moon is sighted, fragrances, jewellery and fashion are also on offer.
Analysts report that total consumer spending during Ramadan in the GCC may be more than half of consumer spending during the remaining 11 months of the year. Last year, online store Mizado.com released statistics showing that online sales received a 10 per cent boost in the UAE in Ramadan, while the amount being spent online by UAE consumers shot up by 40 per cent.
Halal products launched
Quick to respond to public sentiment, Dubai has already seen a couple of halal products being launched this year. At the Arabian Travel Market (ATM), held in May, Halal Trip Info promised to show the world, complete with directional stickers pointing towards the kibla and information on Halal restaurants in destinations as varied as Greece, Italy and India. Bilal Thakur, Co-founder, Halal Trip Info, tells GN Focus, “We launched our website at the ATM. We have already started preparations in anticipation that people will travel towards the end of Ramadan, around Eid.
“This industry is expanding at a very fast pace. There is a lot of interest with the increase in awareness. We have already been approached by travel agents from Dubai, Kuwait and South Africa,” Thakur adds.
Similarly, Bio-Logical Cosmétiques, an organic cosmetics company from France, chose to market its halal credentials in Dubai starting at trade exhibition, Beautyworld Middle East in May. Jean Marc Hayat, CEO, Bio-Logical Cosmétiques, says, “We have all the eco-certifications for our products, which are made in France. However, since everything is natural and there are no forbidden products in our cosmetics, we were advised to get halal certification.” Armed with the certificate from the French halal authority, Hayat plans to market the product in the GCC, Malaysia and Indonesia.
According to the Halal Congress Middle East held last December in Sharjah, “The global halal cosmetics market is estimated at $13 billion. In the Middle East, the market is estimated to be worth $550 million. The region’s beauty sector is worth $2 billion a year, roughly equivalent to 6 per cent of the worldwide market.”
Food pattern
During Ramadan, food consumption patterns change. According to statistics cited by WAM, the worldwide halal food market alone is worth an estimated $650 billion, or close to 17 per cent of the global food industry. A big chunk of this growth is focused on Ramadan.
Sana Toukan, Research Manager, Euromonitor International, tells GN Focus, “Every year we see a surge in spending before the start of the month of Ramadan. Promotion on food items in the supermarkets and hypermarkets, including two-for-one deals on canned foods, sweet and snacks as well as staples such as rice and pasta can be seen across the country.”
Governments ensure that while the shopping patterns may change, prices stay stable. According to reports, the UAE’s Ministry of Economy is introducing measures to bring prices down by 30 per cent on Ramadan-related commodities in July. Local reports in Jordan say the Minister of Industry, Trade and Supply has issued a statement urging merchants and importers to increase food supplies in the local market ahead of Ramadan to cope with increased demand. Along with thousands of Jordanian expats who return home for Ramadan, this year the country is hosting about half a million refugees.
Food retailers prepare especially for Ramadan when meal times are divided into pre and post-fasting rather than breakfast, lunch or dinner. Abu Dhabi-based Blossom Sweets, for instance, has introduced rosy desserts such as Many Rose éclair and Rose Mahalabia. Exclusively this Ramadan, Blossom Sweets will introduce 20 unique treats inspired by Middle Eastern and Asian flavours, including low-calorie and sugar-free varieties.
Since the mood is introspective and traditional, menus change to incorporate this element and keep the prices within affordable limits. While Blossom Sweets has pledged to give away 5 per cent of each sale to Red Crescent, Mandilicious, a restaurant serving Arabian cuisine, will serve a meal, complete with beverages, for less than Dh20. Fayez Al Nusari, Managing Director, Mandilicious, says, “The menu has nine different items from everywhere in the Arabian peninsula. It has a combination of cold and hot, wet and dry, meat and vegetarian dishes.”
Toukan says, “Promotional offers focus on traditional products and snacks including dried fruits and dates in addition to traditional sweets that start to appear in the run-up to Ramadan. Another trend we see is strong in-store, radio and television advertising for consumer appliances including food preparation items and coffee machines, where coffee is considered a staple during the month.”
Focus on gifts
While food and consumer appliances take centre stage before and during the first two weeks of the holy month, the focus shifts to gifts as we get closer to Eid. Ismail Al Fahim, Group Commercial Manager, Paris Gallery, says, “At Ramadan and Eid, customers mostly prefer buying perfumes, watches and cosmetics. Oud-based perfumes are the most sought-after products at this time. During Eid, we have noticed increased sales in jewellery. Also, since Ramadan is in summer, we believe there will be an increased demand for sunglasses.”
Retailers report increased sales during the last week of Ramadan, before its peak during Eid. Dubai in particular enjoys being the shopping destination of choice. Toukan says, “The focus shifts to jewellery and clothing as people start buying gifts for Eid. Fragrances also see high growth during this time, especially Arabian fragrances, as many tourists buy items, which are light to take back home.”
Ramadan shoppers start young. Cosmetics targeted at children, vendors say, do well around Eid. Fulla perfumes and deodorants, Popeye shampoo, Spacetoon eau de parfum all find takers, they say.
