Dubai
For Saudi women, it’s just another reason to hit the malls.
Seventeen per cent of respondents in a Kantar TNS survey believe they will have more time to indulge in leisure activities — shopping more or less — when they get to drive on their own. “Combining this with the increase in disposable income of women, a fillip to the retail, entertainment and F&B sector in the near future is anticipated,” says the report based on a poll of how Saudis view the granting of new rights.
And 82 per cent of Saudi women intend to get a driving license, with driving to work as their primary motivation. For dealerships, there is more good news — 60 per cent of those polled intend to buy a car in the next three years and 38 per cent next year itself.
For most Saudi women, being able to drive their own wheels meant much more. It was about being empowered in a society that was witnessing seismic change, “The biggest emotions expressed by women were related to the feeling that society was progressing the right way (61 per cent), a sense of empowerment (55 per cent) and enhanced career opportunities (46 per cent),” the report said.
According to Neal Henriques, Regional Automotive Director for Kantar, “This historic decision by the Saudi government … will present long term economic benefits beyond the automotive industry. Marketers who want to be ahead of the game need to gain a deep understanding of the needs and drivers that will affect female purchase decisions and tailor their offerings accordingly to capitalise on the new opportunity.
“Our initial research also indicates that the paths to purchase will be far from uniform which will give informed marketers an edge over the competition.”
The proposed changes are not merely cosmetic. Saudi men have wholeheartedly signed up for the scale of the transformation, going by the Kantar TNS survey, which was done in alliance with online panel providers Kantar MobiworkX and Borderless Access.
So, what sort of cars are Saudi women going to buy for themselves? Not too surprising, the small and mid sized car categories — with an average price tag of SR63,000 (Dh61,701) — will be more in demand, with 71 per cent intending to buy in that range.
But the “market for premium vehicles will grow as well and slightly more than a tenth are expected to pay over SR110,000 for these cars,” the poll finds.
“There is a high degree of consistency in our findings between males and females, indicating the staunch support of males to the initiative. Males are likely to continue to play a key role in the decision of vehicle, with 44 per cent still undecided on whether to purchase or give an existing vehicle to the women.
“Among those who were decided, 57 per cent plan to buy a new car for women and a fourth are likely to buy a new vehicle for themselves.”
Currently, the top five brands that women aspire to buy are: Toyota, Hyundai, Ford and Nissan with BMW being the aspirational brand.
BOX — Picking the winners and losers in the shake-up
* According to the Kantar TNS survey, “significant economic benefits” will flow in for auto manufacturers, insurers and allied services. “Dealers will need to revamp their sales and after-sales process to cater to a surge in potential buyers and customers and relook at their communication strategies to target this audience,” it suggests.
* But car hiring and ride hailing apps could come under a bit of stress — 92 per cent of those polled expect to reduce their reliance on taxis and Uber as a result, the survey finds “Women have come out strongly in favour of reducing their reliance on personal drivers as well with over three fourths (80 per cent) of intending drivers expected to reduce their dependency. As a result, we are expected to witness a significant impact on the usage of public transport (taxi/Uber) and a declining demand for drivers.”
-M. N.
