Inflation, unemployment top concerns of UAE consumers

Inflation, unemployment top concerns of UAE consumers

“These circumstances have created opportunities for new entry brands to capture market share from premium brands,” Gonzalo Garcia Villanueva, Global CMO at GfK, told Khaleej Times. Marketing teams are increasingly turning to artificial intelligence to create ever more personalised campaigns, he added.

Excerpts from an interview:

Inflation has a significant impact on consumer behaviour, particularly in relation to purchasing power. It is a prevalent issue globally, and there is a notable level of concern about potential recessions across major economies that have raised anxieties about financial futures.

According to GfK’s Consumer Life Study which covers 30 countries across the Americas, EU, APAC, and MEA, one of the primary concerns among consumers is inflation. Nearly 38 per cent of consumers in the UAE have expressed worry about inflation. The other two major concerns are unemployment and healthcare costs.

These circumstances have created opportunities for new entry brands to capture market share from premium brands. There has been an emergence of new players offering competitive price points and desirable features which has squeezed well-established brands into an even more premium segment.

Adapting to ongoing disruptions is becoming the new norm. Therefore, investing in brand development remains crucial to maintain brand values, connecting with consumers, and fostering loyalty.